SUKKUR, Feb 23: The governments of Sindh, Balochistan and the NWFP have agreed that the Centre should reduce its share from the federal divisible pool and the provinces’ share should be enhanced to 60 per cent of the total national revenue.

This was said by the Sindh chief minister’s advisor for finance, Aftab Ahmed Shaikh on Saturday night during a short visit to Sukkur.

Currently, Mr Shaikh said, the provinces were being given less than 38 per cent of the national revenue while the Centre took away over 62 per cent of the national divisible pool.

He called for reduction of the Centre’s share to 40 per cent of the total revenue.

He said that he had held talks with the finance ministers of Sindh, Balochistan and the NWFP, adding that they had agreed to this distribution formula.

Mr Shaikh said that there was a need to change the formula for distribution of finances between the provinces and the Centre, adding that factors like poverty, deprivation, revenue collection and population should be kept in mind while devising a new formula.

If the factors were assessed, he said, the provinces would receive fund at the ratio of 60 per cent. The Centre, he added, could keep 40 per cent of the total funds for expenditure on defence and other sectors.

The three small provinces, he said, had agreed on the formula, and expressed the hope that Punjab would also agree.

Mr Shaikh said that Sindh still awaited the release of Rs3.4 billion of its subvention share, while Balochistan and the NWFP had already been handed over their share in this regard.

He demanded of the federal government to release Sindh’s share of subvention funds immediately.

Moreover, the adviser said, non-revenue taxes, which were received by the Centre and amounted to over Rs400 billion, should also be reimbursed to the provinces.

Similarly, he said, the GST collection should also be distributed among the provinces with complete transparency.

He said that negotiations with the Center were under way regarding payment of Sindh’s share of the NFC Award in lump sum and not in instalments.

He said that payment in instalments created certain problems for the province, including hampering of development projects.

Referring to the murder of Khalid bin Waleed, he said that the police was in the dark about the killing.

He, however, made it clear that the Muttahida Qaumi Movement would never use the murder of Mr Khalid for political gains.

Describing the Malir killings as being a “conspiracy” to disturb law and order situation prior to Muharram, he said that it was a a bid to prove that the Sindh government was unable to control lawlessness.

He said that the Sindh government was alert to the situation and the terrorists would be punished.

Dismissing the rumours of removal of the Sindh government, he said that it was a mere propaganda ruse used by those who disliked the provincial government.