Rabbani says provincial share in NFC Award to be slashed after accord with IMF

KARACHI: The former Chairman Senate Mian Raza Rabbani has warned that fiscal share of the provinces as enshrined in the National Finance Commission’s award would be reduced as the result of the Pakistan government and International Monetary Fund accord.Speaking at a press conference here on Thursday, former Senate chairman and leader of Pakistan Peoples Party said the agreement negated the democratic and constitutional norms of the country. He demanded that a joint session of the Parliament should be convened to take into confidence the lawmakers in both the elected houses about the accord.He said any assurance of the Pakistani government to the IMF to reduce the financial share of the provinces would be against the provisions of the Article 60 of the Constitution.He said the fiscal equilibrium of the federation would be disturbed as a result of accord with the IMF. He said the recent communique of the IMF has revealed all the fiscal targets of the Pakistani related to its upcoming budget.Rabbani said the government has pledged the fiscal autonomy of Pakistan with the IMF by striking this deal. Raza Rabbani alleged that the IMF has been assured of inserting an amendment in the Constitution of 1973 to do away with the Constitutional provision, which protects the due fiscal interest of the provinces. The PPP Senator said during the last regime of caretaker government, a proposal was discussed to slash the share of the provinces in the NFC. “Such an attempt without taking the provinces into confidence tantamount to accepting the slavery of the IMF,” said Raza Rabbani.“We could not expect from this government to protect the Pakistan’s assets as it has negotiated with the IMF on the interests of the provinces and on the NFC award,” he said.He said the government had appointed such a person as its Finance Advisor whose allegiance lied with the IMF while the newly appointed governor of State Bank of Pakistan has remained in the service of the IMF.He said the federal government has already asked the provinces to contribute from their fiscal share towards development of the now-defunct federally administered tribal areas, expenses borne on war against terrorism, expenditure incurred on security of the CPEC projects.“Now a proposal is being discussed to ask the provinces to share the burden of the Benazir Income Support Prorgamme. If the provinces are supposed to bear the entire fiscal burden then for what is the purpose of the federation,” he said.

from The News International - National http://bit.ly/2HyWtV3