ISLAMABAD, Sept 22: The Centre and the federating units on Sunday finalized a Rs20 billion subvention pool for the sixth National Finance Commission award — an increase of about 50 per cent over the previous award — and included Sindh in its recipients.

Inside sources told Dawn that Sindh would get Rs5.67 billion from the subvention pool, and Rs6.67 billion and Rs7.66 billion would go to the NWFP and Balochistan, respectively.

The stakeholders agreed that provincial backwardness, area, and revenue generation would be the basis of sharing resources from the subvention pool from the 7th NFC award, the sources said.

Based on these three points, the three provinces would work out their future figures and reconcile with the NFC secretariat, most probably during the final NFC meeting to be held in Lahore later this month.

A committee comprising the federal and provincial representatives would be formed within the next few days to monitor the revenue generation position, a government official explained.

It was agreed that the federal government would contribute Rs15 billion in the subvention pool and the provinces would contribute the remaining Rs5 billion in accordance with the same percentage they would get their shares from the divisible pool, the official said.

The NFC meeting on Sunday fine-tuned the recommendations of the Peshawar meeting held last week and reached the agreement on sharing of resources from the federal divisible pool by 60:40 between the federation and the provinces.

It was agreed that the 1998 census would be the basis of the divisible pool for which the federal cabinet has already approved a law. This way, the provincial share has increased from 37.5 per cent to 40pc and the federal share has dropped from 62.5pc to 60pc due to a change in the population ratio. The 1998 census has increased Sindh’s share by around Rs600 million but reduced that

of Punjab by about half a percent. The meeting agreed to ensure continuous monitoring and evaluation of the revenue generation on a quarterly basis by the NFC secretariat and the provinces. Figures duly audited by the Auditor-General of Pakistan Revenue would make the basis of the distribution of resources between the stakeholders.

As regards the GST, gas and royalties, the provinces would work out their figures in consultation with their governors and reconcile these figures with the NFC secretariat before the final NFC meeting to be held later this month.

The question of royalty on the hydel power generation remained unsettled and it was agreed that the federal government would act as an arbitrator between Wapda and the NWFP.

Meanwhile, an official statement said that the 5th NFC meeting had discussed the draft award agreement for the sixth award which is take effect from the next financial year.

The meeting was presided over by Finance Minister Shaukat Aziz.

The statement said that the meeting had decided to hold its next meeting in Lahore to finalize these recommendations.

The meeting was attended, among others, by the secretary-general of finance, provincial finance ministers, and federal secretaries.