KARACHI: Sindh Chief Minister Syed Qaim Ali Shah has categorically stated that his government will oppose any proposal calling for a one-year extension in the validity of the current National Finance Commission Award if tabled at the Tuesday (April 28) meeting convened by the federal finance minister in Islamabad.

Mr Shah was speaking at the consultative meeting held at the CM House on Monday to discuss Sindh’s strategy to effectively present its financial case at the Islamabad meeting.

Responding to the speculations in some circles about extension of one year in the period of present NFC award, the chief minister said that the Sindh government would oppose any such proposal if raised at the meeting convened by the federal finance minister on April 28 and emphasised the need to have new NFC award as per its schedule.

Also read: Next NFC award

The consultative meeting was attended by Sindh Finance Minister Syed Murad Ali Shah, Adviser on the NFC award Saleem Mandviwala, Chief Secretary Moha­m­med Siddique Memon, Finance Secretary Sohail Rajput and Secretary to the CM Alamdin Bullo, all members of the team that has prepared recommendations for the next award.

Mr Shah said that Sindh had recommended a progressive increase of 60 per cent in the provinces’ share in the divisible pool as against the existing 57.5 per cent.

Citing Sindh’s active participation in the war against terrorism, Mr Shah said the province deserved an additional share as was being given to Khyber Pakhtunkhwa. He said Sindh had been fighting terrorism for the past three years but the federal government did not pay Rs10 billion on this account despite having made a commitment.

The chief minister also asked the team to include in the set of recommendations a demand for funds for those departments and vertical projects that had been devolved to the province under the 18th Constitutional Amendment, especially with reference to the Sindh’s own Higher Education Commission.

The meeting also discussed the existing formula for provinces’ share in the divisible pool, status of straight transfers, present population and its density ratio, urban influx and proposed reforms in GST collection on goods.

Electricity bills

At a separate meeting chaired by the chief minister, it was decided that the provincial government would not pay the electricity dues outstanding against it to the Hyderabad Electric Supply Company (Hesco) and the Sukkur Electric Power Company (Sepco) until the ministry of water & power withdrew its notification prohibiting installation of solar and wind power plants and rationalised the power loadshedding in Sindh.

The meeting was attended by Sindh Minister for Finance and Energy Syed Murad Ali Shah, Federal Water and Power Secretary Younis Dagha and other federal and provincial officials as well as representatives of the Hesco and Sepco.

Mr Dagha told the meeting that around Rs9 billion power dues were outstanding against various departments in the Hyderabad and Sukkur region. “Originally the amount was Rs17 billion but after reconciliation of the disputed bills, it has come down to around Rs 9 billion,” he said, urging the chief minister to pay off Rs2.4 billion on an urgent basis.

Published in Dawn, April 28th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play