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Sindh Chief Minister Syed Murad Ali Shah said Wednesday that a proposal for allocating funds from the federal National Finance Commission (NFC) Award for the security of China-Pakistan Economic Corridor (CPEC) projects is 'unconstitutional'.

Shah also opposed the use of these funds under the proposal for uplift projects in the Federally Administered Tribal Areas (Fata).

Shah made these observations in a meeting with Punjab Finance Minister Aisha Ghaus Pasha, who had called on him at the Chief Minister House in Karachi on Wednesday, a press release stated.

Read more: Murad asks centre to announce 9th NFC award at the earliest

Shah said the federal government's proposal to allocate 3pc funds from the divisible pool for security arrangements for CPEC-related projects and 4pc for the development of Fata, Gilgit-Baltitstan and Kashmir is unreasonable and against the Constitution. "The divisible pool is only for distribution of collected funds among the provinces," he added.

The Sindh CM said the proposal would also establish a wrong precedent, which is why all provinces should oppose it collectively.

According to the official statement, the Sindh CM is of the opinion that the federal government has already allocated 1pc of the funds from the divisible pool for maintenance of law and order in Khyber Pakhtunkhwa (KP) alone. Therefore, the recent demand is unconstitutional, and "cannot be met".

"The Sindh government has already raised a force of at least 2,000 ex-army men to provide security to CPEC-related projects and its employees. Apart from that, the Sindh government has spent Rs300 billion on maintenance of law and order from 2010-11 to 2015-16.

“The federal government did not bother to bear a single penny of the expense, and now it is pressing the provinces to give funds from their shares" he said, adding that this was unacceptable.

“I request the Punjab, KP and Balochistan governments to develop consensus and oppose the proposal,” he said.

The Punjab finance minister assured Shah that she would support him.

The Sindh CM also said provincial governments should have the right to collect sales tax on goods and deposit the same with the federal government for onward distribution among the provinces according to the agreed share.

“We have prepared the case and the Punjab government should also make a similar case so that [the argument] can be presented in the next NFC meeting,” he said.

He also said the federal government's unilateral decision implementing at-source deduction of wealth tax without consulting Sindh government is 'illegal'.

"The deduction is made purely on presumptions. The federal government should reconcile the figures with the Sindh government" before making deductions, the statement from the CM House said.

The Punjab finance minister validated Shah's reservations and grievances, saying they are "genuine" and that the opinion of the Punjab government on the issue aligns with the Sindh government.

Comments (14) Closed

Houlbelat Jan 11, 2017 08:17pm

Very easy to understand why Sindh CM opposes proposal to fund CPEC security from NFC Award. That is a big chunk taken away from his plundering plans.

Sab Se Pehle Pakistan Jan 11, 2017 08:18pm

Everyone knows where the funds from NFC award ends up specially in Panjab ans Sindh. So please spare CPEC from it. Funding for CPEC should be monitored and controlled by Pakistan Army.

Philosopher(from japan) Jan 11, 2017 08:16pm

He is spot on.

Ahmed bin Babar Jan 11, 2017 09:15pm

Common interests should be guarded through common finances...

Alba Jan 11, 2017 09:24pm

The CM of Sindh is obstructionist. He is not helping anyone. Pakistan has to be dragged into the 21rst century kicking and screaming.

Masoud Jan 11, 2017 09:58pm

Dear CM please make Karachi a model city, a real beautiful city, you have the power please find the will to do so.

ali Jan 11, 2017 11:21pm

good job shah

NASar Jan 12, 2017 12:57am

Agree with CM SINDH

Adeeb Jan 12, 2017 01:50am

Exactly good decision by the corrupt ruling elite, this NFC money is destined to go in their pockets directly

Adeeb Jan 12, 2017 01:46am

who vote these blood suckers?

Sami KHan Jan 12, 2017 04:57am

It is only fair when other provinces also pay their due share for the CPEC security

Muhammad Qurban Jan 12, 2017 07:19am

Spot on. Let C PEC pay all its costs including security.

ahmad Jan 12, 2017 07:30am

good CM sahib,

WASEEM Jan 12, 2017 03:54pm

This is typical of our cultural joint family. Everyone wants a big piece from the cake, but no one wants to share in the labour and trouble. and Sind is one of the largest beneficiary of CPEC in the form of Thar coal & other projects, and our beloved CM does not want to share any cost