3 provinces protest transfer of their funds to Centre
Three provinces have protested over "unauthorised and unconstitutional" transfer of their funds to the federal consolidated fund and approached the Council of Common Interests (CCI) to get the diversion reversed.
On the complaint of Punjab, Sindh and Balochistan, the CCI will deliberate the issue on Monday (Dec 23) when it is also expected to allow financing of about Rs150 billion loans of Wapda through electricity tariff to pay off net hydel profits to the provinces.
With a total of 16 items on the agenda, the CCI is also expected to seek transfer of responsibility to the provinces to finance devolved vertical programmes of health and population welfare and approve notification of National Census 2017 results.
The CCI under former prime minister Shahid Khaqan Abbasi had taken up final results of the census on May 28, 2018 but had deferred approval for notification since two provincial assemblies had stood dissolved by then.
The CCI comprised the prime minister, four chief ministers and federal ministers for finance, industries & production, inter-provincial coordination and economic affairs.
Federal ministers for law, energy, federal education & professional training, planning and development, privatisation, science & technology, water resources, National Health Services, the attorney general of Pakistan, deputy chairman of Planning Commission, chairmen of Federal Board of Revenue (FBR) and Higher Education Commission, four provincial chief secretaries and at least a dozen federal secretaries would attend the meeting.
Because of the severity of the complaints, the Ministry of Inter-Provincial Coordination has made three separate agenda items of the CCI on the request of three provinces. On the complaint of Sindh, the CCI will debate "unconstitutional and unauthorised deduction by FBR from the Provincial Consolidated Fund (PCF)". These funds are maintained by State Bank of Pakistan.
On the request of Balochistan, the CCI will discuss "unauthorised deductions by federal government on FBR's claim on account of alleged outstanding withholding tax on vehicles and 5pc service charges deducted on account of collection of WHT" by Balochistan.
Likewise, on the complaint of Punjab, the CCI has also put on the agenda the "unauthorised transfer of public money from provincial consolidated fund to federal consolidated fund by the State Bank of Pakistan on the directions of FBR".
The provinces have been protesting over these deductions and diversions for many years. Last year, the CCI had directed the Ministry of Finance to resolve provincial complaints against the FBR over at source deduction of funds from Provincial Consolidated Fund but without any outcome.