K-P Finance Minister said around 20 million people of the province were hit by terrorism which was further
bringing down the province’s economy. PHOTO: INP/FILE
Haq was speaking at a news conference after a consultative meeting titled ‘jirga for resolution of financial issues of K-P’. At the meeting, which was attended by former finance ministers Saleem Saifullah, Abdur Rauf Khattak, Nawazbzada Mohsin, Haji Adeel and Farid Rehman, the government decided to form an advisory council with representation from all political parties to help attain due rights from the federal government.
Haq said various political leaders have decided to launch a combined struggle for provincial rights in the larger interest of reviving economic conditions. “We will soon convene a meeting of Senators and National Assembly members from the province to chalk out an effective strategy in this regard,” he added.
Haq demanded the immediate release of net hydel profits and termed its delay a violation of Article 161 (2) of the Constitution and against the decision of the Council of Common Interest (CCI) by the federal government.
“We condemn freezing of electricity profit owed to K-P by the National Electric Power Regulatory Authority (Nepra) and have empowered the provincial government to take the issue to court,” Haq said, adding it will first take up the issue in the next meeting of the National Finance Commission (NFC) award.
According to the resolution passed at the meeting, the federal government is yet to pay Rs67 billion in annual net hydel profit under the AGN Qazi formula to the K-P government, whereas the same amount stands at Rs39 billion per annum according to a decision of the arbitration tribunal.
“According to the tribunal’s estimate, K-P is owed Rs273 billion from 2005-06 to 2012 while the same amount stands at Rs469 billion under the AGN Qazi formula,” the resolution states. The resolution further states the K-P government seeks an immediate release of Rs45 billion, but Wapda and the federal government are resorting to ‘delaying tactics’.
Haq also criticised distribution of resources related to poverty and backwardness at 10.30% under the seventh NFC award. “We demand the ratio be jacked up to 15%,” he added.
The minister claimed the province produces half of the country’s crude oil and an exorbitant amount of gas, and thus deserves to be compensated as such. Regarding scant irrigation projects in K-P, he maintained the water share of the province was being spent by Punjab and Sindh and demanded over Rs109 billion in losses under the water accord of 1991 for construction of new dams by the two provinces.
The meeting also decried alleged discrimination in the Public Sector Development Fund (PSDP) in the past few years and sought attaching PSDP projects to NFC resources’ distribution ratio and condition of spending 100% of the allocations within the fiscal year.
He said the province’s economic woes were compounded by constant power outages, lack of investment and closure of industrial units.
The minister said around 20 million people of the province were hit by terrorism which was further bringing down the province’s economy.
Terming 1% allocation for compensating terrorism losses as a meager figure under the federal divisible pool, the meeting demanded a 5% allocation in the eighth NFC award. Haq said losses incurred in Malakand division due to terrorism were estimated at Rs86 billion for which the federal government should provide compensation.
Published in The Express Tribune, December 28th, 2013.
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