15 January 2004	Thursday	22 Ziqa'ad 1424

PESHAWAR, Jan 14: The district governments in the NWFP want greater representation in the Provincial Finance Commission (PFC)and involvement in the preparation of the PFC award.

The nazims of Lakki Marwat, Kohat and Bannu had been raising voice against the formula for distribution of resources among the district governments from the provincial divisible pool, sources said.

They said the Lakki Marwat District Nazim Humayun Saifullah, in a recent workshop, questioned the manner in which the current PFC award was announced. The nazim is a member of thecommission.

"There should be an open debate on the award before its announcement," he said and added: "The district governments should be involved in the preparation of theaward instead of getting the document signed fromthe commission after holding one or two meetings."

The Bannu and Kohat nazims, according to the sources, also wanted that the entire revenue receipts of the province should be put in the divisible pool, as was done in Punjab. They thought doing so would improvethe district governments' share and help them overcome their financial problems.

The district governments had also sought greater representation in the PFC, sources said. The commission consists of seven members, including a district nazim and a tehsil nazim, the NWFP local government and rural development minister, two economic experts from the private sector and the provincial finance secretary. The provincial finance, planning and development minister is the head of the commission.

In line with a condition of the World Bank's structural adjustmentcredit programme, the NWFP government is required to give the next PFC award for three years instead of one year. The award is due to take effect from July 1.

Sources said the provincial government would only be able to give the PFC award for three years if the National Finance Commission gave its award by March 31 for five years.

"Unless the province knows how much amount it is going to get during the next five years from the Centre, how would it be able to announce the PFC award for three years," asked an official.

Sources said the local government and rural development department wasalso not satisfied with the PFC. "Though the local government and rural development minister is a member of the PFC, the department could not give its input because its secretary is not in the commission," said an official and added that the administrative head of the department should also be on the PFC.