ISLAMABAD: According to reports, the Pakistan government has rebuffed the International Monetary Fund’s (IMF) call to revisit the National Finance Commission (NFC) Award.
During the second review talks under the $3 billion loan program via the Stand-By Arrangement (SBA), the IMF urged Islamabad to reconsider the NFC Award with the provinces, citing a shortfall in federal funds.
Sources within the government emphasized that any proposal regarding the NFC Award that contradicts the constitution will not gain approval.
While asserting that the provinces’ share under the NFC Award will remain intact, the sources indicated that the federation and its provinces could collaborate on devising a cohesive strategy on this issue.
Additionally, the sources mentioned that the federation is exploring avenues to augment its revenue through alternative means.
Article 160 of the Constitution empowers the president to sanction the distribution of revenues between the federation and the provinces through the NFC Award.
Although the 2010 NFC Award was initially set for a five-year term, subsequent discussions to revise it have not yielded consensus.
The IMF delegation is presently in Pakistan for the second review under the SBA loan program. Approval from the IMF would pave the way for the release of a $1.1 billion loan tranche for Pakistan.
The discussions around the NFC Award are critical as they reflect the delicate balance between federal and provincial interests, especially regarding fiscal autonomy and resource allocation. Any renegotiation of the award would require extensive deliberation to ensure equitable distribution and sustainable economic growth across all regions of Pakistan.
