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Provinces miffed at IMF’s proposal to cut NFC share

Pakistani labourers sits on a roadside at a market in Rawalpindi on Oct. 9, 2018. (AFP)
Updated 12 October 2018
Khurshid Ahmed
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Provinces miffed at IMF’s proposal to cut NFC share

  • Move could impact health, education and welfare sectors, officials say
  • Governments say current distribution is fine and should not be reversed
Updated 12 October 2018
Khurshid Ahmed

KARACHI: Taking umbrage at the suggestion that they reduce their share from the federal pool of reserves, the four provincial governments of Pakistan said on Thursday that they would strongly resist the move.

The idea was proposed by the International Monetary Fund (IMF) as part of measures to strengthen Pakistan’s federal fiscal framework. And if the plan is brought to fruition, it would require the provincial governments to reduce their share in the National Finance Commission (NFC) Award.  

The NFC Award ensures financial resources are divided among the four provinces according to the 18th amendment, which dictates that the provinces have the autonomy to manage their budgets and expenditure. The constitutional framework demands that all four provinces have to mutually agree to any change made in the NFC Award. However, the president has the final authority to revise the provinces’ shares through an executive order if they fail to reach a consensus.

“The current distribution of resources under the NFC award is fine as once the power devolution has taken place and provinces are managing their finances themselves the distribution should not be reversed,” Taimor Saleem Khan Jhagra, Finance Minister of the Khyber Pakhtunkhwa (KP) province, told Arab News on Thursday. 

At present, the four provinces get 57.5 per cent of the resources from the divisible pool of taxes under the seventh NFC Award distribution, whereas the federal share stands at 42.5 per cent. Among the four, the Punjab province gets the lion share at 51.74 per cent, followed by Sindh at 24.55 per cent, Khyber Pakhtunkhwa at 14.62 per cent and Balochistan at 9.09 per cent. 

Reacting to the proposal, Spokesman of Chief Minister Sindh, Rasheed Channa, Rasheed Channa, told Arab News that “any move to curtail the funds would be resisted”, adding that: “Sindh is demanding that its share in NFC be increased  because of the large spending in the province in the backdrop of a large inflow of people coming in from other provinces as well”. 

Demanding a revision in the distribution of the NFC Award finances, Balochistan Finance Minister, Muhammad Arif Hasni, said: “We are suggesting that the government should also enhance our share by considering the factor of area of the province other than population and poverty.” 

Reasoning that the IMF’s aim was “to consolidate federal fiscalism” to ensure that the “federal governments are more empowered”, Dr Farrukh Saleem, Government’s spokesperson on Economy and Energy Issues, told Arab News that the proposal would be in the interest of the federation because “big expenditure including debt servicing is being incurred by the federal government”. 

Balochistan continued to raise alarm at the suggestion, adding that it had always been at the receiving end of such measures. “The successive government have misused the fund they received under the NFC award. The provincial government is in a rush position to get the funds from federal government as it is running out of funds to pay salaries to government employees,” Shaukat Populzai, president of the Baluchistan Economic Forum, said. 

He added that any cut in the federal government would not impact the province’s position towards Chinese investment – particularly in the China Pakistan Economic Corridor project – as that is being made under the federal government. “If China makes investment at the micro level such as in agriculture, mining and other social economic sectors then there will be trouble,” he added.  

Instead of curtailing the shares of the provinces, Jhagra said better engagement and coordination among provinces and the federal government could be the solution to the problem. “The center needs to enhance revenue generation by scaling up tax collections by the FBR [Federal Board of Revenue] and that is a daunting task for the government,” he said. 

Responding to a question about the financial health of the KP province, he said: “We are healthier than other provinces and we do not need to go into deficit. Our budget is higher than last year, but we do not have a comfortable fiscal space for the development in the province.”  

Pakistan on Thursday formally requested the IMF to provide financial assistance to tackle its depleting foreign exchange reserves. Confirming the news, IMF’s managing director, Christine Lagarde, said that a decision on the matter will be taken after more talks next week. 

As the country gears up for talks leading to a bailout, many at home fear that the IMF could force Pakistan to implement its proposal and ensure a provincial cut in the NFC Award share.

Topics: international news latest news headline Pakistan International Monetary Fund (IMF) National Finance Commission

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Pakistan vows order as Imran Khan’s party launches protest before Belarusian president’s arrival

Updated 5 sec ago
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Pakistan vows order as Imran Khan’s party launches protest before Belarusian president’s arrival

  • Deputy PM questions PTI motives, calling protest march ‘conspiracy’ against Pakistan’s honor
  • Interior Minister Mohsin Naqvi asks Ali Amin Gandapur to prioritize stability in his own province
Updated 5 sec ago
SAIMA SHABBIR WASIM SAJJAD

ISLAMABAD/PESHAWAR: Tension continued to mount in Pakistan on Sunday as the government vowed to prevent any disruption in Islamabad during a high-level visit by the Belarus president, as supporters of jailed former prime minister Imran Khan began marching to the capital to demand his release.
Khan’s Pakistan Tehreek-e-Insaf (PTI) party is spearheading a “long march” to the capital after more than a year of his incarceration on charges he claims are politically motivated. The party is also protesting alleged rigging in February’s general elections and raising concerns about judicial independence, which it says has been undermined by recent constitutional amendments, a claim the government denies.
Security in Islamabad has been tightened, with paramilitary forces deployed and major roads sealed with shipping containers. The interior ministry has suspended mobile data services in sensitive areas, and highways have been blocked to thwart the arrival of protesters.
Addressing the media in Islamabad, Interior Minister Mohsin Naqvi criticizing PTI’s timing ahead of the three-day visit of Belarusian President Aleksandr Lukashenko to discuss for bilateral economic cooperation.
“Protecting the lives and property of citizens is a priority,” he said. “Disruption during the arrival of foreign guests will not be tolerated under any circumstances. Anyone spreading chaos will be arrested.”
Naqvi also urged Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, a close aide of ex-PM Khan, to prioritize stability in his own province instead of staging protests, calling such demonstrations harmful to national interests.
He also informed the authorities had detained “extremists” in Islamabad.
Pakistan’s Deputy Prime Minister Ishaq Dar also questioned PTI’s motives, describing its protest as “a deliberate conspiracy against the country’s honor and dignity.”
Earlier, Planning Minister Ahsan Iqbal accused Khan’s party of attempting to disrupt Pakistan’s economic recovery by launching a demonstration right ahead of the Belarusian president’s visit.
“I am hopeful this drama will end tonight, and normalcy will return,” he said at a press conference in Lahore.
Iqbal defended the government’s strict measures, highlighting its responsibility to ensure law and order.
Meanwhile, residents of Islamabad said they were already grappling with disruptions. Mohammad Hayat, a 32-year-old fruit vendor, lamented the impact of the ongoing political friction between the government and the opposition party on his livelihood.
“Since morning, I haven’t had a single customer. Roads are blocked, people can’t come out, and my fruit is perishing,” he said.
Another resident, Sayyed Sarmad from E-16 sector, criticized the road closures, claiming, “A girl died in an ambulance yesterday. The government should allow protests but manage them better.”
PTI leaders also remained resolute as caravans from KP headed toward Islamabad.
Asif Khan, a party lawmaker, declared “we will go to our destination at any cost,” highlighting transportation challenges as booked vehicles were allegedly blocked. “We arranged vehicles from other districts and captured videos to show our strength,” he added.
Iman Tahir, a women’s leader from Attock, underscored the movement’s peaceful nature.
“We have always been peaceful and will go peacefully this time again,” she said. “Today, all of Pakistan will rise, and Khan’s final call will be a successful one.”
Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, leading the rally, reiterated his commitment while traveling in official protocol.
“We are going to D-Chowk at any cost, and we will not return before reaching D-Chowk,” he said at the Peshawar Motorway toll plaza, referring to an iconic spot in Islamabad that has witnessed political protests for decades.
Another PTI lawmaker, Arbab Sher Ali, echoed the party’s determination to reach the federal capital, saying, “We are instructed to reach Islamabad and are following Khan’s directives. If we can’t reach today, we will reach tomorrow or the day after.”
PTI leaders have hinted at an indefinite sit-in in Islamabad, saying the will not return until their demands are met by the government.

Topics: PTI protest Islamabad Pakistan Belarus Ties Belarus president Imran Khan

Pakistan vows to facilitate Chinese investors in Special Economic Zones

Updated 24 November 2024
Shahjahan Khurram 
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Pakistan vows to facilitate Chinese investors in Special Economic Zones

  • China, a major ally of Islamabad, has pledged $65 billion for a massive economic corridor project in Pakistan
  • Chinese investment and financial support since 2013 have been key for Pakistan’s struggling, fragile economy
Updated 24 November 2024
Shahjahan Khurram 

ISLAMABAD: Pakistan’s Privatization Minister Abdul Aleem Khan promised to facilitate Chinese investors in Special Economic Zones (SEZs), state media reported this week as Islamabad eyes foreign investment in vital sectors to sustain growth and avoid a macroeconomic crisis.
SEZs are usually subject to different and more favorable economic regulations compared to other parts of the same country, which include tax incentives and the opportunity to pay lower tariffs.
China, a major ally and investor in Pakistan, has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC) project. CPEC is a part of the Belt and Road Initiative, a massive China-led infrastructure project that aims to connect various countries around the globe through trade. 
“Federal Minister for Privatization and Communications Abdul Aleem Khan says the Board of Investment will provide all facilities to Chinese investors including sale and transfer of land in Special Economic Zones,” Radio Pakistan reported on Saturday. 
Khan, as per the state-run media, was presiding over a meeting in Lahore to discuss difficulties being faced by investors in SEZs. 
“He directed to resolve all problems being faced in the Special Economic Zones across the country,” the state broadcaster said. 
Chinese investment and financial support since 2013 have been key for Pakistan’s struggling economy, including the rolling over of loans so that Islamabad is able to meet external financing needs at a time its foreign reserves are low.
Though time-tested allies, recent security challenges have put a slight strain on Pakistan’s ties with China. Separatist militants have attacked Chinese projects in Pakistan over the past few months, killing Chinese personnel.
In October, a suicide blast claimed by the separatist Balochistan Liberation Army (BLA) killed three people in Pakistan’s southern port city of Karachi, including two Chinese nationals, who were targeted in the attack.
Five Chinese workers were killed in a suicide bombing in March this year, which was the third major attack on Chinese interests in Pakistan in a week.
China has called on Islamabad to ensure security for its citizens in Pakistan. The South Asian nation has in turn sought to ease Chinese fears, vowing to provide fool-proof security to its citizens living and working in the country.

82 killed in three days of Pakistan sectarian violence

Updated 24 November 2024
AFP
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82 killed in three days of Pakistan sectarian violence

  • Mobile network across Kurram is suspended and traffic on main highway remains halted amid tensions
  • Around 300 families fled on Saturday as gunfights with light and heavy weapons continued into the night
Updated 24 November 2024
AFP

PESHAWAR: Three days of bitter sectarian gunfights in northwestern Pakistan have killed at least 82 people and wounded 156 more, a local official said Sunday.
Pakistan is a Sunni-majority country but Kurram district in Khyber Pakhtunkhwa province — near the border with Afghanistan — has a large Shiite population and the communities have clashed for decades.
The latest bout of violence began on Thursday when two separate convoys of Shiite Muslims traveling under police escort were ambushed, killing at least 43 and sparking two days of gunbattles.
“The clashes and convoy attacks on November 21, 22, and 23 have resulted in 82 fatalities and 156 injuries,” said a local administration official speaking on condition of anonymity.
“Among the deceased 16 were Sunni, while 66 belonged to the Shia community,” he told AFP.
Around 300 families fled on Saturday as the gunfights with both light and heavy weapons continued into the night, however no fresh casualties were reported on Sunday morning.
“The mobile network across Kurram remains suspended and traffic on the main highway is halted,” said the local administration official.
Police have regularly struggled to stymy violence in Kurram, which was part of the semi-autonomous Federally Administered Tribal Areas until it was merged with Khyber Pakhtunkhwa in 2018.
A delegation from the provincial government held talks with the Shiite community on Saturday and is scheduled to meet the Sunni community later on Sunday.
A security official in the provincial capital of Peshawar told AFP the negotiators’ helicopter had come under fire as it arrived in the region, although no one was harmed.
“Our priority today is to broker a ceasefire between both sides. Once that is achieved, we can begin addressing the underlying issues,” provincial Law Minister Aftab Alam Afridi said Sunday.
Last month at least 16 people, including three women and two children, were killed in a sectarian clash in Kurram.
Previous clashes in July and September killed dozens of people and ended only after a jirga, or tribal council, called a ceasefire.
The Human Rights Commission of Pakistan said 79 people died between July and October in sectarian clashes.
Several hundred people demonstrated against the violence on Friday in Pakistan’s second largest city of Lahore and Karachi, the country’s commercial hub.

Topics: Kurram Agency kurram district parachinar

Pakistan’s Iram Parveen Bilal bags Best Director award for ‘Wakhri’ at Indian film festival

Updated 24 November 2024
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Pakistan’s Iram Parveen Bilal bags Best Director award for ‘Wakhri’ at Indian film festival

  • Wakhri, meaning one of a kind, is inspired by life of murdered Pakistani social media star Qandeel Baloch
  • Yellowstone International Film Festival is an Indian festival that showcases films from around the world
Updated 24 November 2024
Arab News Pakistan

ISLAMABAD: Pakistani director Iram Parveen Bilal this week bagged the Best Director Feature Film award at the fifth Yellowstone International Film Festival, held in India’s New Delhi, for her film “Wakhri.”
Wakhri, meaning one of a kind in the Punjabi language, was inspired by the life of murdered Pakistani social media celebrity Qandeel Baloch. The film’s plot revolves around the challenges faced by a widowed schoolteacher named Noor, who becomes a social media sensation overnight. 
Yellowstone International Film Festival is an Indian film festival that showcases films from around the world, providing a platform for filmmakers. With special categories such as women empowerment films, environmental films and student films, this year’s YIFF was held from Nov. 15-20 in New Delhi. 
“Thank you for the honor, [YIFF] jury and organizers,” Bilal wrote on Instagram on Thursday. “[Wakhri] shines brightest with its audiences. Deep gratitude to my entire team, cast and crew alike, for enhancing my vision every step of the way.”
Wakhri had its world premiere at the Red Sea International Film Festival in December 2023 before its release in Pakistan on Jan. 5 this year. 
Written by Bilal and Mehrub Moiz Awan, Wakhri has been produced by Abid Aziz Merchant, Apoorva Bakshi and Bilal’s Parveen Shah Productions.
The film stars prominent Pakistani actress Faryal Mehmood in the lead role, Gulshan Mated, Sajjad Gul, Salem Mairaj, Sohail Sameer, Bakhtawar Mazhar, Akbar Islam, Tooba Siddiqui, Behjat Nizami and Bushra Habib.

Pakistan reports three new polio cases, pushing 2024 tally to 55

Updated 24 November 2024
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Pakistan reports three new polio cases, pushing 2024 tally to 55

  • Two cases reported from southwestern Balochistan province, one from northwestern KP 
  • Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country
Updated 24 November 2024
REHMAT MEHSUD

PESHAWAR: Pakistan has reported three new cases of poliovirus, two from the southwestern Balochistan province and one from the northwestern Khyber Pakhtunkhwa (KP), the country’s polio eradication program said on Sunday, pushing this year’s total tally of cases to an alarming 55. 
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. The nation’s polio eradication campaign has faced serious problems with a spike in reported cases this year that have prompted officials to review their approach to stopping the crippling disease.
On Friday, Pakistan reported two poliovirus cases from the KP province. 
“The Regional Reference Laboratory for Polio Eradication at the National Institute of Health has confirmed the detection of three wild poliovirus type 1 (WPV1) cases in Pakistan, bringing the number of total cases in the country this year to 55,” the polio eradication program said in a statement. 
Two out of the three cases were reported from Balochistan’s Zhob and Jaffarabad districts while one was reported from the northwestern Dera Ismail Khan district. 
The program said that D.I. Khan is one of the seven polio-endemic districts of southern KP which has now reported six polio cases this year. Zhob has reported its third polio infection while Jaffarabad its second this year.
Out of a total of 55 cases reported this year, Pakistan has reported 26 from Balochistan, 14 from KP, 13 from Sindh and one each from Punjab and Islamabad.
Poliovirus, which can cause crippling paralysis particularly in young children, is incurable and remains a threat to human health as long as it has not been eradicated. Immunization campaigns have succeeded in most countries and have come close in Pakistan, but persistent problems remain.
In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021.
Pakistan’s polio program began in 1994 but efforts to eradicate the virus have since been undermined by vaccine misinformation and opposition from some religious hard-liners, who say immunization is a foreign ploy to sterilize Muslim children or a cover for Western spies. Militant groups also frequently attack and kill members of polio vaccine teams. 
Pakistan’s chief health officer this month said an estimated 500,000 children had missed polio vaccinations during a recent countrywide inoculation drive due to vaccine refusals.
“Considering the intense polio outbreak, it is crucial for parents to ensure vaccination for all their children under the age of five to keep them protected,” the program said.

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