January 10, 2006	Tuesday	Zilhaj 9, 1426

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ISLAMABAD, Jan 9: The federation has sent the recommendations and reservations received from the provinces on a final formula related to the new NFC award to the president who wants to announce a new award together with the announcement regarding construction of the Kalabagh dam.

Finance Ministry sources told Online on Saturday that the federation had sought proposals from the provinces that 52 per cent shares of revenue would go to the federation and the remaining 48 per cent would be distributed among the provinces.

The federation would provide 90 per cent of divisible pool to the provinces on the basis of population and 10 per cent on the basis of revenue generation, backwardness and poverty.

In its reply, Sindh had asked under what ratio the 10 per cent shares of divisible pool would be provided to the provinces. Sindh has also asked the federation not to touch funds which were provided by the federation to provinces at the rate of 2.5 per cent of GST collection.

Punjab has not objected to the formula given by the federation saying 90 per cent distribution of funds from divisible pool on the basis of population is acceptable to it. However, Punjab has asked the federation not to include special grants and 2.5 per cent of GST in 48 per cent share of provinces.

The NWFP has urged the federation to disburse maximum funds among the provinces over the size of population besides finalizing the recommendations of the arbitration committee constituted with reference to hydel-power profit. Balochistan has taken the stance that maximum funds be provided to it on the basis of population and backwardness. It also demands that the matter of Balochistan gas surcharge be resolved.—Online