December 10, 2003	Wednesday	Shawwal 15, 1424

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QUETTA, Dec 9: The federal government is likely to face a tough time because of the Balochistan-sponsored formula for distribution of financial resources between the Centre and provinces, floated in the first NFC meeting, seeking to raise provinces’ existing share by 18 per cent.

The second round of NFC meeting will be held on Dec 13 to discuss proposals floated by Balochistan and other provinces.

The cabinet meeting held the other day made public the formula aimed at developing a consensus among representatives of the federal government and provinces, resolving contentious issues between the federation and federating units, specially on distribution of financial resources.

The Balochistan formula suggest that provinces’ share in financial resources should be increased to 50 per cent. The plan calls on the federal government to sacrifice 18 per cent of its share in favour of provinces.

The formula also calls for distributing 60 per cent of the financial resources on population basis, 10 per cent distributed equally among all provinces, 10 per cent awarded according to provinces’ development needs, 10 per cent as a reward for performance, five per cent for basic structure/reward of services, and five per cent for population growth.

Participants of the cabinet meeting urged the federal government to accept the formula forwarded by Balochistan, saying it was necessary if the federal government was interested in resolving chronic problems confronted by Balochistan.

The provincial government was very much clear in visualizing the mood of the people that endorsing the existing award would jeopardize the Jam coalition government as the nationalist political groups were ready to exploit the situation if the provincial government succumbs to the pressure of the federal government.

The Jam government is also worried about the Rs3 billion still not released by the federal government. The amount was granted by Italy to be spent in areas with Afghan a heavy refugees population.

The cabinet had also expressed its resentment about the federal government’s not providing funds for execution of the Annual Development Programme projects besides the provincial government was also facing problems regarding implementation of its Public sector development programme because of paucity of funds.

The Balochistan chief minister had talked with the prime minister on telephone before the latter’s departure for Paris, emphasizing the need for the federal government to release the Rs3 billion Italian grant for continuation of the PSDP schemes.

It was learnt that the prime minister had extended the assurance to protect Balochistan’s just rights, including its share in the NFC award.