KARACHI, July 25: The provincial governments are seeking advice from the legal and constitutional experts on inclusion of the name of federal government’s adviser Dr Salman Shah on the ten-member National Finance Commission constituted on Saturday by the President.

The federal government, however, insisted that it had all the legal powers to nominate its advisor on the NFC, the Sindh Finance Minister Syed Sardar Ahmad told Dawn on Monday.

“Punjab government is too in doubt on this issue,” the Sindh Minister said. The Sindh government is now consulting the legal and constitutional experts on the issue. The Balochistan government, too, is in doubt and hence not in a position to take a stance on the issue. The questions are being raised in context of the Article 160 (1) of the 1973 constitutions which says as follows: “Within six months of the commencement day and thereafter at intervals not exceeding five years, the President shall constitute a National Finance Commission. The minister of finance of the federal and ministers of finance of the provincial governments and such other persons, as may be nominated by the President after consultation with the governors of the provinces, would be its members.”

Under this article, the finance minister of the federal and the provincial governments-—all elected members in the federal and provincial legislatures-—are on the NFC by virtue of their political office. The President has been authorized to nominate ‘such other persons’ as may be proposed by the governors of the provinces.

Has the name of Dr Salman Shah been proposed by the Punjab Governor? It is the logical question being raised in Sindh government circles. If it is so, then there will be three representatives of Punjab on the NFC. One, the finance minister, second the private member and third the federal government advisor.

But a record of the compositions of the previous NFCs show that names of the federal government advisors were included. Such a precedent was set by the first government of Pakistan Peoples’ Party in 1990 when Prime Minister Benazir Bhutto, who held charge of Finance, constituted the NFC on July 23, 1990. This NFC was headed by Benazir Bhutto. It included Mr Wasim Jaffarey, then Advisor on finance and Makhdoom Shahabuddin the State Finance Minister. The NFC could never hold any meeting because the PPP government was dismissed in first week of August 1990.

In December 1990, the NFC was re-constituted and names of the federal government’s advisor on finance and state minister on finance were deleted. The four private non-statutory members on the NFC were replaced by new nominees. The strength of the NFC was reduced from 11 members to nine. This NFC completed its task with five months and gave its award in April 1991. The 1991 NFC award recognized for the first time right of the provinces on the economic benefits of the natural resources within geographical territories.

In the second term, the PPP government of Benazir Bhutto, who was again in-charge of the Finance, constituted NFC in July 1995. The 11-member NFC again included federal government’s advisor and the state finance minister. This NFC could hold a few meeting before the PPP government was again removed in first week of November 1996.

The caretaker government was headed by late Malik Meraj Khalid who also kept Finance portfolio with himself. Javed Burki was federal government’s advisor on finance and was on the 10-member NFC. This NFC of the caretaker government gave its award in Februrary 1997 and was the most controversial in Pakistan’s history. The 1997 NFC award has literally crippled—-financially and economically-—Sindh and Balochistan.

While there are different views on the composition of the NFC a large number of officials and politicians believe that the federal government has deliberately created such issue to involve provinces in a prolonged legal battle to maintain the status quo.

The provincial assemblies of Sindh, Balochistan and NWFP are expected to take up the NFC formation as a priority issue. This issue is bound to come up in the Senate and the National Assembly too.

Both the Sindh and Balochistan are retaining their respective private statutory members on the NFC. They are Nazar Sheikh from Sindh and Dr Gulfaraz from Balochistan.