Provincial Minister for Finance Tanvir Ashraf Kaira has said that the 7th NFC Award is a landmark achievement in the political history of Pakistan, and it will pave the way to give financial autonomy to the provinces, and redress grievance of Balochistan.
He said that the federation has agreed to provide additional resources to the provinces and share of provinces has been increased from 47.5 percent to 57.5 percent in the federal divisible pool, which is a major shift in vertical revenue sharing. He said long-standing demand of the provinces has been met amicably.
Kaira pointed that Punjab has shown remarkable flexibility to accommodate other provinces, especially Balochistan in the 7th NFC Award. Punjab has sacrificed its 1.1 percent share for Balochistan and according to new NFC formula, Balochistan would get 9.1 percent from horizontal distribution and its shares would be enhanced up to 83 billion, he added. According to him, Punjab has made sincere efforts to strength the federation by accommodating other provinces.
He said that according to the new formula of NFC, the Punjab would get 70 billion more funds from the federation, which would help to use it for the betterment of people of Punjab. Kaira said that GST on services now has become a provincial subject and federation would get only 1 percent collection charges. Reduction collection charges on GST on services would also help the provinces to get additional resources, he said.