LAHORE, Feb 4: The National Finance Commission will deliberate on the formula for inter-provincial distribution of funds from the divisible pool at its meeting to be held in Karachi on Thursday.

The meeting will be presided over by Finance Minister Shaukat Aziz and attended by provincial finance ministers. Sources said the ministers and officials had informally discussed various issues during a session on Wednesday.

Mr Aziz is on record having said the new NFC would be finalized before March 31.

The federal government has already indicated that it will increase the provincial share in the divisible pool. But, at the same time, it has also told them that there will be no subventions or federal grants for the law and order, devolution, calamities, etc.

Federating units want the share from the divisible pool to be increased to 50pc from the present 37.5pc, but the centre is yet to agree to the proposal.