LAHORE, Feb 26: Prime Minister's adviser on finance and revenue Dr Salman Shah said on Saturday the next National Finance Commission award would be settled before the finalization of the next budget in June.

Speaking to reporters at the Lahore Chamber of Commerce and Industry (LCCI), he said 95 per cent of the NFC award had already been settled and the rest of the issues relating to it would soon be sorted out amicably.

In response to a question about President Gen Pervez Musharraf's suggestion that the revenues should be shared on 50:50 basis between the centre and the provinces, he said the proposal would also be discussed when deliberations on the NFC resumed.

Dr Shah said the government was considering establishment of $100 million SME Innovation Fund to build new entrepreneurs and products. Out of this, he added, $30 million each would come from the donors and the government and the remainder 40 per cent would be in the shape of guarantees.

Similarly, there was a plan to set up Agriculture Support Fund amounting to $25-30 million to modernize the agriculture sector and introduce high valued crops.

8pc GDP: Earlier speaking to the businessmen, the adviser said the government was trying to achieve eight per cent GDP growth target next fiscal. "If we achieve it and maintain it for the next 10 years, it would make available Rs700 billion annually for the public sector development programme."

He said the economy required three ingredients - trained manpower, sufficient energy and water - to achieve the eight per cent GDP growth. A 25-year plan, he said, had been chalked out to make enough energy available to meet the country's needs. "Under this plan, local as well as foreign resources would be tapped."