Provinces agree to give more NFC share to federal government

— Provinces have agreed to give more share of National Finance Commission (NFC) resources to federal government and transferred monies are expected to be spent on strategic expenditures, sources in Ministry of Finance said.

Punjab, Sindh to pay additional income to federal government on tax collection targets for next fiscal year: officials But they said there will be no change in the current NFC system for the division of national funds.

The sources said the federal government would provide money to the provinces based on the tax target of the current fiscal year. The total tax target for the 2018 fiscal year is Rs15,264 billion.

The tax aim is an increase of Rs2,259 billion from the current year. The federal government is also expected to pay back the grant amount to the provinces over the next few years.

The suggested arrangement envisages about Rs600 billion from Punjab, while the contribution of Sindh is projected at around Rs310 billion. It is also claimed that Khyber Pakhtunkhwa has applied to accept grants from the federal government.

Sources further added that the talks between the technical committee, headed by Deputy Prime Minister and Foreign Minister Ishaq Dar and the Pakistan Peoples Party (PPP) have been successful, opening the way for agreement.