ISLAMABAD: The President of Pakistan on Tuesday constituted the 10th National Finance Commission (NFC) consisting members of federal and provincial governments.
The finance commission has been constituted with effect from April 23, 2020, consisting following members:
01. Minister for Finance, Government of Pakistan: Chairman
02. Minister For Finance, Government of the Punjab: Member
03. Minister for Finance, Government of Sindh: Member
04. Minister for Finance, Government of Khyber Pakhtunkhwa: Member
05. Minister for Finance, Government of Balochistan: Member
06. Advisor to the Prime Minister on Finance and Revenue: Member
07. Tariq Bajwa, Government of Punjab: Member
08. Dr. Asad Sayeed, Government of Sindh: Member
09. Musharraf Rasool Cyan, Government of Khyber Pakhtunkhwa: Member
10. Javed Jabbar, Government of Balochistan: Member
11. Finance Secretary, Government of Pakistan: Official Expert
The president has also authorized Advisor to the Prime Minister on Finance and Revenue to chair the meeting of the NFC in the absence of Federal Finance Minister.
A circular issued in this regard stated that in terms of Article 160(2) of the Constitution, the terms of reference for the 10th NFC are as under:
a. Distribution between the Federation and the provinces of the net proceeds of the following taxes:
i. Taxes on income, including corporation tax, but not including taxes on income consisting of remuneration paid out of the federal consolidation fund;
ii. Taxes on the sales and purchases of goods imported, exported, produced, manufactured or consumed;
iii. Export duties on cotton, and such other export duties as may be specified by the president;
iv. Such duties of excise as may be specified by the president; and
v. Such other taxes as may be specified by the president.
b. Making of grants-in-aid by the federal government to the provincial governments;
c. Exercise by the federal government and the provincial governments of the borrowing powers conferred by the constitution;
d. Assessment and allocation of resources to meet expenditures related to Azad Government of the States of Jammu and Kashmir, Government of Gilgit-Baltistan and newly merged districts of Khyber Pakhtunkhwa (erstwhile FATA);
e. Assessment and allocation of resources to meet expenditures made on security and natural disaster/calamities;
f. Assessment of total public dent and allocation of resources for its repayment;
g. Rationalization of subsidies given by the federal and provincial governments in their budgets and agreeing on a mechanism to finance them;
h. Exploring ways to reduce losses of state-owned enterprises and agreeing on mechanism for sharing these losses between the federal government and the provincial governments;
i. Any other matter relating to finance referred to the commission by the President.
The finance division shall, as per the Rule of Business, 1973, provide the secretarial support to the commission.