Staff Report
ISLAMABAD: Former Pakistan Peoples Party (PPP) senator Farhatullah Babar voiced concerns on Friday regarding the ongoing debate surrounding the National Finance Commission (NFC) Award, urging the finance ministry to address the issue promptly.
In a statement, the head of the party’s human rights cell found the finance ministry’s “silence” amidst media speculation about potential reductions in the provinces’ share in the NFC Award “intriguing”.
He called for a decisive response from the ministry to alleviate any apprehensions among the provinces, seeking “a firm rejoinder to dispel any misgivings in the provinces”.
The former senator said the desire to roll back NFC was tantamount to rolling back the 18th Constitutional Amendment, which he said has been “the dream of undemocratic elements and centrists in the country for long”. He emphasized the importance of upholding provincial autonomy.
“Declare in categorical terms that the provincial autonomy guaranteed will not be compromised,” the PPP leader stressed.
Accusing certain factions of aiming to curtail provincial rights, Babar challenged the narrative blaming provinces for extravagant spending. He pointed out significant increases in the federal government’s expenditures, particularly in areas such as pensions and executive expenses.
“Since 2011 pensions and superannuation allowances of the federal government have increased by nearly seven fold,” Babar maintained.
The senator highlighted staggering increases in the federal government’s spending, citing a notable rise of Rs563 billion in military pensions and Rs188 billion in civil pensions over the past 12 years.
He also noted an over eight-fold surge in expenses for the executive and legislative branches and current account expenditures.
Contrary to claims, Babar asserted that the NFC Award is not responsible for the government’s financial challenges.
He stated that the root cause of the federal government’s financial challenges lay in its failure to implement effective taxation policies, redundant ministries, and uncontrolled defense spending.
“The centrists should heed the UN report that privileges grabbed by the power elite exceed 17 billion dollars a year or six percent of the economy,” Babar stated, urging them to prioritize reforms at the federal level instead of targeting provincial allocations.
The Express Tribune reported earlier this month that the International Monetary Fund (IMF) urged Pakistan to revisit the NFC Award to strike a balance between the provinces’ and federal government’s resources and responsibilities.
The PPP reiterated its position regarding the NFC Award formula, saying it is the constitutional right of the provinces, and should not be changed.
The party leadership has openly opposed the IMF’s suggestion that Pakistan revisits the NFC formula to address the ongoing imbalance in the distribution of fiscal resources between federal and provincial governments.
