PESHAWAR, May 16: NWFP Finance Minister Sirajul Haq has urged the federal government to announce the National Finance Commission (NFC) award prior to the next budget. "The province will get into trouble if the Centre does not finalise the NFC award before the upcoming budget for 2004-05", the minister asserted.

Speaking at a press conference here on Sunday he said that the new formula for the NFC was on the basis of poverty and backwardness of a province, which he described was based on justice.

He said that in the previous award the population was the basic criterion, which had enhanced poverty in the NWFP and reduced per capita income. The unjust distribution of resources caused economic imbalance in the society and the per capita income in the NWFP was only Rs 786 per month, he added.

In the previous award, he informed, provinces received 37.5 per cent while the Centre was given 62.5 per cent. He said that if the Centre agreed on 50 per cent formula the NWFP would get Rs 46 billion under the new award.

Mr Siraj, who is also senior minister, urged the Centre to give 50 per cent share in the next NFC award. "The centre should take practical steps for strengthening the federating units", he said, adding that the provinces were waiting for a positive outcome of the NFC meetings.

He said that population should not be the sole criterion for the distribution of resources. he informed that the NWFP had proposed that formula for the distribution of resources under the NFC award should be made on the following basis: 80 per cent on population basis, 19 per cent backwardness of area, one per cent on poverty and one per cent on area basis.

The finance minister said that after "thaw in relations with India and installation of a friendly government in Kabul" the Centre should focus on economic stability of the provinces.

He believed that the country could not survive only military might and the rulers must learn from the past particularly the fall of Dhaka. He also demanded increase in the net hydel profit from Rs 6 billion to Rs 10 billion.