ISLAMABAD: A federal minister dropped a bombshell on Tuesday when he told the Senate that the government was not constitutionally bound to give the National Finance Commission (NFC) award to the provinces and ruled out the possibility of a new award in the coming financial year.

“The constitutional command is to constitute the NFC after intervals not exceeding five years and it does not make it mandatory for the centre to give the NFC award,” Commerce Minister Khurram Dastagir Khan said.

Also read: NFC award may be extended for one year

He was responding, on behalf of Finance Minister Ishaq Dar, to a calling-attention notice by PPP’s Sassui Palejo regarding a delay in the announcement of the eighth NFC award.

He also said the new NFC would not be applicable for the 2015-16, which starts on July 1.

The minister’s remarks prompted Senate Chairman Raza Rabbani to quip: “Why are you compelling me to read out the Constitution and give a ruling?”

Senators call for probe into May 12, 2007, carnage in Karachi

Mr Dastagir said the government had fulfilled its responsibility by constituting the NFC on July 1, 2014. The president approved it on April 24 and the first meeting of the commission had already been held, he said, adding that four working groups had been formed and asked to formulate recommendations within a suitable timeframe.

The Senate chairman observed that it would be strange if the NFC award followed the announcement of the budget, adding that it would be inappropriate to deny the rights of the provinces.

He said the centre’s apathy towards provincial issues had prompted an entire provincial assembly to come out and protest outside the Parliament House, referring to Tuesday’s demonstration by PTI MNAs and Khyber Pakhtunkhwa Chief Minister Pervez Khattak.

Mr Rabbani said that after the protesters announced their plan he had called the KP chief minister and told him that the PTI should raise its reservations in the Senate through its members and assured him that the upper house would play its role in resolving the issue.

Under Article 160 of the Constitution, the President is bound to constitute an NFC consisting of the federal finance minister, the provincial finance ministers and other persons appointed by the president in consultations with provincial governors. The commission makes recommendations for distribution of net tax proceeds between the federation and the provinces. The current NFC award, which was finalised in 2010, will expire on June this year.

Earlier, Sassui Palejo called for an increase in the provincial share in net taxes and criticised the government for the delay in constituting the commission.

MAY 12 CARNAGE: Senators from different political parties also called for an investigation into the May 12 carnage in Karachi eight years ago.

They recalled that on that day a rally for restoration of then chief justice Iftikhar Mohammad Chaudhry was attacked in Karachi and then military ruler Pervez Musharraf described the incident as “a sign of my might” in a speech at Islamabad’s D-Chowk the same evening.

Senator Usman Kakar of the PkMAP was of the view that a “black day” should be observed on every May 12 as long as “Gen Musharraf and his accomplices” were not punished. He regretted that the former dictator was still enjoying immunity.

The ANP’s Ilyas Bilour said that PPP had been in power in Sindh since 2008 and it was up to them to hold an inquiry into the unfortunate episode.

Chaudhry Tanveer of the ruling PML-N said a number of people had lost their lives on May 12, 2007, and called for accountability of those behind the massacre. He also called for placing a report on the matter before the house.

The PML-N’ Syed Nihal Hashmi said the house should be informed about the status of the case and details of all arrests made.

The house admitted an adjournment motion moved by PPP Senator Saeed Ghani and others seeking discussion on the merger of KASB Bank with Bank Islami. Discussion on the motion will begin on Wednesday.

Another adjournment motion, moved by Mushahid Hussain Sayed of the PML-Q, sought to discuss reports that the US raid on Osama bin Laden’s Abbottabad hideout was carried out with the connivance of senior Pakistani officials. It was deferred because only one adjournment motion can be admitted in one day under the rules.

The house also adopted a resolution authorising the Senate chairman to constitute a special committee of members from all political parties, with equal representation from the four provinces, on the China-Pakistan Economic Corridor project. The committee will be formed after consultations with the leader of the house and the leader of the opposition in the Senate.

The house will meet again on Wednesday at 2pm.

Published in Dawn, May 13th, 2015

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