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Monday, March 15, 2010

President Zardari to assent NFC Award today

ISLAMABAD, Mar 15 : President Asif Ali Zardari is to assent the 7th NFC Award at a special ceremony being held at Aiwan-e-Sadr here today (Tuesday)
The function will be attended by Prime Minister Syed Yousuf Raza Gilani, Provincial Chief Ministers, Federal Ministers, Provincial Finance Ministers and other dignitaries.
The historic 7th National Finance Award (NFC) was formally signed on 30th December, 2009 in Gwadar at a specially arranged function.
The consensus NFC Award had been prepared on the multiple criteria of population, backwardness and poverty, revenue and inverse population providing more resources to the smaller provinces.
Under the Award eighty two percent of the National resources under the divisible pool will be distributed on the basis of population, 10.3 percent on poverty and backwardness, 5 percent on revenue collection and generation and 2.7 percent resources on the basis of inverse population density. The provinces will get fifty six percent resources from the federal division pool during the next financial year against the existing 47.5 percent that would be raised to 57.5 percent for the following four years.
The provinces have also been authorized to collect General Sales Tax on services, which is presently being collected by the Federation. However, the federation on behalf of the provinces would collect this tax until the provinces make their own arrangements.
The overall percentage of the provinces in the resources under the new NFC Award would be Punjab 51.74 percent; Sindh 24.55; NWFP 14.62 and Balochistan 9.09 percent.
Under the new NFC, Balochistan will get eight three billion rupees as compared to existing fifty four billion rupees while it will also get arrears of one hundred and twenty billion rupees of Gas Development Surcharge.
The Federation would provide six billion rupees to Sindh, which constitute point 66 of the pool, from its own resources.
As the NWFP is a frontline in the war against terrorism, it would get one percent from the undivided pool to help meet expenses on war on terror. This would be in addition to the resources to be made available by the Federal Government in this regard.

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