NFC award on equalisation basis demanded

04 Mar, 2007

The nationalist leaders on Saturday demanded that National Finance Commission award not be allocated on the sole criteria of population but on the basis of equalisation where under developed areas that are rich in resources should get a bigger share.
They also urged the government to transfer all the subjects to provinces except defence, foreign affairs and currency to strengthen the federating units. They were speaking at a roundtable discussion on 'Federation in Pakistan and the Conflict in Balochistan' organised by the National Democratic Institute (NDI) in collaboration with the Strengthening Participatory Organisation (SPO).
The speakers included Dr Abdul Hayee Baloch, Hasil Bazinjo, Senator Aga Shahid Bugti, Senator Abdul Rahim Mandokhail, Amanullah Karnani, Naila Qadri, Dr Kaiser Bengali while spokesman of Balochistan government Raziq Bugti and Senator Dilawar Abbas represented the government.
Comparatively analysing the situation, former Canadian Minister for Justice and National Revenue Martin Cauchon said that in the Canadian Constitution, provinces have numerous taxation powers while the federal government only has the right to impose personal and corporate taxes.
He said that Canada is following the principle of equalisation to ensure equal benefits to all its citizens, regardless of which province they live in.
Cauchon also shared the experience of Quebec as a unique province in Canada that attained provincial autonomy over language, culture, and a separate legal system.
Renowned Economist Kaiser Bengali suggested that Federal Divisible Pool (FDP) should be distributed horizontally rather than vertically keeping in view the level of deprivation and underdevelopment of the small provinces.
He said that out of the total revenue collection of Rs 716 billion, Rs 307 billion are generated from non-tax revenue, which is not included in the FDP and recommended for its inclusion.
He added that of the total non-tax revenue of Rs 307, almost 10 percent (Rs 30 billion) is contributed only by Pakistan Petroleum Limited, which is in Balochistan. He further said that out of the 45 percent provincial share in the FDP, Balochistan is getting only 5 percent due to its distribution on population basis, which he termed unjust.
Besides, Sindh is not getting its due share from the NFC award due to its distribution on the basis of population despite contributing highest contributor of total taxes, he maintained. Kaiser further said that Gwadar Port is not economically feasible for Balochistan, as there is no interline of the port in the province, whereas there is neither industry nor any export base in Balochistan to be benefited from the port.
Out of the total length of Kachi Kanal, two-third falls in Punjab and only one third in Balochistan, he said and added that Coastal Highway is also constructed for strategic purpose and hence not beneficial for the local population. He added construction of Kalabagh dam would badly affect the livelihood of Baloch fishermen, he observed.
Pakistan National Party secretary general and Baloch leader Mir Hasil Bazinjo said that before the creation of Pakistan, there were five nations - Baloch, Pushtoon, Sindhi, Seraiki and Begalis - who were enjoying all the fundamental rights, which should be restored to strengthen the federating units.
He regretted that agreements regarding the fate of Balochistan were made without taking the provincial assembly and people of Balochistan into confidence. Even the provincial cabinet and the government is formed by the Inter Service Intelligence here in Islamabad, he alleged.
Senator Abdul Rahim Mandokhail of the Pakhtoonkhwa Milli Awami Party said that except currency, foreign affairs and defence, all other subjects should be transferred to provinces.
Naila Qadri said that funds should be distributed according to the backwardness of the provinces rather on the basis of population. She alleged that for the first time Baloch women were killed, raped and harassed by the government officials.
In the name of mega development schemes, another type of colonial infrastructure is being developed in the province to transfer its resources to other areas, she maintained.

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