ISLAMABAD, Feb 10: Prime minister’s adviser on finance, Shaukat Aziz said on Monday that the National Finance Commission would be reconstituted after Eid in consultation with all the four provinces.

Talking to reporters here, Mr Aziz said a meeting of the provincial finance ministers had been convened after Eid to reconstitute the NFC and to evolve a new resource distribution formula.

He said that the unofficial members of the NFC were to be renamed for the new NFC award.

When reminded that Sindh and NWFP had expressed reservations over the formula finalized earlier for distribution of resources, Mr Aziz said that the Constitution had clearly laid down the procedure to deal with inter-provincial matters. “Therefore, we would not violate the Constitution to decide this NFC award,” he said.

To a question, he said it was pre-mature to say whether the formula finalized earlier would be adopted or some changes would be made into it to make it acceptable to all the four provinces for the next NFC award.

To another question, the adviser said that Japan had agreed to reschedule Pakistan’s $3.2 billion debt. In this behalf, he said, officials of both the countries would shortly be meeting in Islamabad to sign an agreement.

He said about 85 to 90 per cent of Pakistan’s bilateral debt had been restructured in line with the decision of the Paris Club.

Mr Aziz said that the US Senate had approved the written off of $1 billion debt and an announcement in this regard would be made soon by the Bush administration. “In net present value, the US government will be writing off $200 million debt which had swelled to $1 billion over the last many years,” Mr Aziz said.

Asked about the government strategy vis-a-vis oil import in case of US attack on Iraq, the adviser said that Pakistan had enough oil stocks which could last for 28 days. “But we need to enhance our oil reserves,” he said, adding that Pakistan would not be directly affected in case of a US attack on Iraq.

Mr Aziz said that Pakistan had sufficient foreign exchange reserves to meet any eventuality. He said there was no need for rationing of commodities as the country had adequate stocks of various commodities. He, however, said that a committee comprising ministers for defence, interior, petroleum, information and finance would meet after Eid to assess the situation arising out of the possible attack on Iraq.