Real Beneficiary of the NFC Award

On March 16, this year, President Asif Ali Zardari signed the 7th National Finance Commission Award. While addressing a ceremony, the president declared it a “historic achievement” of the government.

The NFC Award is an agreement by all federating units over the annual distribution of financial resources among the provinces by the federal government.

Prime Minister Yousaf Raza Gilani said the NFC Award would reduce the trust deficit between the federation and provinces as well as among the provinces.

No doubt, the political leadership of the federal government and that of the four provinces have shown a greater sense of responsibility, tolerance and flexibility in reaching a consensus. The federal government had willingly given up its share in the divisible pool to increase the provinces’ share. Both the Punjab and Federal Government have abandoned some of their share to meet the needs of the Frontier Province and especially Baluchistan.

This is a historic occasion for Pakistan because it is first time that all federating units have reached consensus without any major disagreements.

Under the new NFC Award, the federation met the demand of the provincial governments for a greater share in national resources.

The previous award rewarded the centre with 52.5 percent of the divisible pool; whereas the current award reduces this to 44 percent i.e. an increase of 8.5 percent in the share of the provinces. The sole criteria for allocation of resources on population basis have been done away with. Under the new formula, Punjab would get 51.74 per cent from the divisible pool, Sindh 24.55 per cent, NWFP 14.62 per cent and Balochistan 9.09 per cent.

The long standing demand for more provincial autonomy has been met to a greater extent.

The past practice in which grants and other special awards by the centre took 10 percent out of the total revenue pool has been cast off and the revenue collection charges taken by the centre has been cut down to one percent. The non- National Finance Commission issues like the federal government’s dispute with the Frontier Province on net hydel profits and with Balochistan on gas development surcharge has been amicably settled. Both the provinces will receive over Rs100 billion each as a resolution of these issues

Punjab province has shown much flexibility as a good gesture of sacrifice especially for Balochistan. In the new award, Punjab has given up 1.27 per cent, Sindh 0.39 per cent and NWFP 0.26 percent, while Balochistan has gained.

In view of the special needs of the Balochistan province, the three provinces mutually agreed to reduce their share. In this respect, the share of Balochistan increased to 9.09 percent from the current 7.17 percent.

For the rest of the years of new award based on the provincial share of 57.5 percent, Punjab would receive Rs938 billion, Sindh Rs445 billion, North West Frontier Province Rs265 million and Balochistan Rs165 billion.

The National Finance Commission has also decided to pass on the subject of sales tax (On services) to the provinces. The Federal Government has agreed to reduce collection charges from 5 percent to 1 percent. These concessions by the government have been appreciated by the provinces and will no doubt contribute significantly to the mutual understanding.

Balochistan the largest province with its immense gifted resources has been given its just share. It is significant that the accord was signed in Gwadar because Balochistan is the real beneficiary of this new award.

Meanwhile, the Parliamentary Committee on Constitutional Reforms has almost finalized a draft in connection with the constitutional amendments. Besides other matters, the committee has also decided to accommodate the demands of the smaller provinces to increase provincial autonomy.

Nevertheless, despite all of this, the success of the National Finance Commission Award will depend upon the economic and political stability in Balochistan

On the one hand, the government has redressed the grievances of the people of Balochistan through the 7th NFC Award, while on the other; India by supporting the Baloch separatists is likely to castigate the fruits of the award. Indian hands have already succeeded in inciting the general masses to oppose the country’s federation through the Baloch feudal lords (Sardars).

Although Pakistan’s civil and military leadership has repeatedly stated that Indian secret agency, RAW supports separatism in the province of Balochistan, yet Indian intervention in Balochistan is not confined to verbal statements, it has in fact proved. In this connection, in the recent past, the Institute of Defence Studies and Analysis (IDSA), New Delhi organised a seminar titled: South Asia 2020 regarding Balochistan. In their speeches, various scholars and thinktanks maligned Pakistan in one or the other way.

Besides the seminar, on November 5, 2009 a secret conference titled: “Pakistan is Problem in Balochistan” was organised by the Observer Research Foundation (ORF) in New Delhi. It was headed by the former secretary of RAW and Indian former chief of army staff. In that conference, high ranking selective officials, journalists and three Baloch leaders, namely, Dr Wahid Baloch, Khan of Kalat and Munir Mengal participated.

The speech of Dr. Wahid Baloch, General Secretary of the American Friends Balohistan (AFOB) is of special attention. While vocally raising false allegations in line of the Indian conspiracy against the federation of Pakistan, Dr. Wahid appealed to the Indian high officials to raise the question of Balochistan on all international forums and the UN bodies. Wahid Baloch pointed out that the ultimate goal of Baloch struggle was to seek a greater Balochistan comprising territory on either side of the Goldsmith line in Pakistan as well as Iran.

In fact, the secret conference organised by India and participation of the Baloch leaders including anti-Pakistan elements proves that Indian RAW is behind all the events like hostage-takings, sectarian violence, targeted killings of the high profile leaders and other subversive acts being committed in Balochistan.

While favouring the Sardari system (Fedual lords), Dr. Wahid maintained that Balochistan is a tribal society which follows the directions of their tribal chiefs.

As a matter of fact, the unrest actually started in Balochistan when various projects were undertaken by the previous government to develop the backward regions of the province. The sole aim was to eliminate frustration among the people by providing infrastructure and employment opportunities. The Baloch Sardars who had been backed by India and other external powers started opposing all the developmental projects. These Sardars who were running their own private jails and ‘farrari camps’ resisted the government plans as they did not want to give up the old system of feudal lords. It was Pak Army which occupied private jails and farrari camps and thus set free several innocent people.

In reality, Balochistan Liberation Army (BLA) which has been fighting for secession of the province get logistic support from India, while another CIA and Indian-supported separatist group, Jundollah (God’s soldiers) is also working against the cordial relationship of Pakistan with China and Iran. In the past few years, their militants with the cooperation of foreign agents kidnapped and killed many Chinese and Iranian nationals in Pakistan, while committing other subversive acts in the province.

Nonetheless, the consensus reached between the centre and the provinces on the division of resources in connection with the 7th National Finance Commission is a historic step in the right direction. Now, all the patriotic Baloch should unite against the foreign intervention.

By Sajjad Shaukat, Sajjad Shaukat writes on international affairs and is author of the book: US vs Islamic Militants, Invisible Balance of Power: Dangerous Shift in International Relations

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Real Beneficiary of the NFC Award was first posted on March 21, 2010 at 7:25 pm.
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