ISLAMABAD: Chairman Senate Standing Committee on Finance, Revenue and Privatization Senator Saleem Mandviwalla has said that in-equal distribution of resources will increase the sense of deprivation among smaller provinces.
He said the federal government should give a chance to provinces for equal development. By giving more fiscal autonomy to the federating units, federation of Pakistan would be more strengthen, he added in a press statement received here on Wednesday.
After the 18th amendments it is the constitutional requirement of federal government to re-constitute and issue the new National Finance Commission (NFC) Award at earliest.
Federal government should take a lesson from the European Countries, especially from Germany, how to transfer resources to the federating units.
He said this while meeting with the Ms Daniela Trochowski, State Secretary Ministry of Finance of Land Brandenburg, in German Parliament. He is leading a high ranking Delegation of Pakistani Parliamentarians in a weeklong visit of German Parliament.
Pakistani Delegation consists of Provincial Finance Minister, Syed Murad Ali Shah, Muzaffar Said, Khalid Humayon, Raheel Siddique, Kiser Bengali, Idrees Khawaja, and Qaisar Ahmad Sheikh.
Senator Mandviwalla informed the German Parliamentarians that Provinces in Pakistan are establishing their own Revenue Collecting Agencies. Provinces have performed much better than the Federal government in the recent years.
Specially, Sindh Revenue Board has surpassed the revenue target in last year and is developing the new system to simplify the taxation process.
He said that scope of Sindh Revenue Board is to be widened and it be would assigned the task of collecting revenue of the devolved departments.
Senator Mandviwalla told the German parliamentarians that Pakistan People’s Party (PPP) took all the political parties on board and developed consensus on the 7th NFC award. The 7th National Finance Commission award has been appreciated by all sections of society at national and international level.
He said that it has been considered as a victory of democracy and provincial partners. Political experts have acknowledged the efforts of PPP Government to bring all units at a consensus after a long time period. Economists have considered it a foundation for “Fiscal Federalism” in Pakistan.
Senator Mandviwalla said that “Overall, the 7th NFC award is historic because it has eliminated a deadlock of approximately 13 years in discussion to bring out positive and solid change within federal and provincial revenue distribution”.
Credit goes to the federal and provincial governments who played a pivotal role to create an environment of trust and showed accommodative flexibility. This is a rare example of mutual understanding and adjustment of all units of a state, he added.