The federal government has distributed Rs 507.13 billion among the provinces during July-December period of 2012 under the 7th National Finance Commission (NFC) Award.

The Federal Board of Revenue (FBR) has reported a figure of Rs 865.06 billion up to 31st December 2012. The provincial share in the divisible pool was worked out to be Rs.485.63 billion. Additionally, Rs 12.97 was released to Balochistan province in order to mach the budgeted figure of Rs 114.21 billion. Similarly Rs 8.53 billion (1% of net proceeds) was paid to KPK on account of war on terror. As such, the total amount of Rs 507.13 billion was distributed among the provinces.

Chairing the meeting on Bi-Annual Monitoring of the Implementation of NFC Award for the period from July-December, 2012, Federal Minister for Finance, Senator Saleem H. Mandviwalla said that 7th NFC Award is a major achievement of the present democratic government and a milestone in achievement of national harmony. The present government has not only finalized the NFC Award with complete consensus of the provinces but also implemented it in letter and sprit. The progress in implementation of 7th NFC Award is satisfactory, said Saleem H. Mandviwalla.

To further streamline the process of implementation of NFC Award and to resolve any issue the meeting of federal and provincial finance ministries will be held on monthly basis under the chair of the Finance Minister, further said Senator Saleem H. Mandviwalla. High officials of Federal Finance Division along with high officials of provincial finance departments attended the meeting. The meeting was held as per class-3 (B) of Article 160 of the Constitution of Islamic Republic of Pakistan.

It was further informed that the entire net proceeds of royalty on crude oil reported by Ministry of Petroleum and National Resources up to 31st December, 2012 has been distributed among the provinces. The entire net proceed of royalty and surcharge has been distributed exactly in accordance with provisions of the Award.

The meeting was informed that the province of Sindh is entitled to receive grant-in-aid equivalent to 0.6% of the provincial share in the divisible pool in lieu of losses on abolition of Octroi and Zila Tax. The compensation against abolition of Octroi and Zila Tax amounting to Rs.3.49 billion has been paid to the Government of Sindh.

All the participants expressed their satisfaction our the implementation of 7thNFC Award and thanked the Federal Minister for Finance, Senator Saleem H. Mandviwalla for his kind support and patronage.