F.P. Report
ISLAMABAD: Pakistan Peoples Party (PPP) MNA Dr Sharmila Faruqui reiterated the party’s steadfast stance in favor of upholding the National Finance Commission (NFC) Award, emphasizing the critical need for economic growth as a sustainable solution to Pakistan’s financial challenges.
The NFC Award, introduced in 2010, has been a cornerstone of Pakistan’s fiscal framework, aiming to distribute federal tax revenues equitably between the federal and provincial governments. Dr Sharmila Faruqui emphasized the importance of respecting this constitutional mandate, highlighting that any attempts to revise the award must be approached with careful consideration of its long-term impact on Pakistan’s federal structure and inter-provincial relations.
In response to recent discussions surrounding the NFC Award, she affirmed PPP’s position, stating, “NFC Award is a constitutional right of the federating units. It should not be tampered with.” The recent news about the International Monetary Fund’s demand to curtail the NFC Award amidst the federal government’s meaningful silence raises concerns about undermining the constitutional framework that safeguards provincial autonomy and fiscal harmony, Sharmila added. She said Pakistan’s adherence to the NFC Award is not merely a matter of policy but a constitutional obligation that fosters cohesion and inclusivity across diverse regions. The Award serves as a conduit for resource allocation, enabling provinces to address local needs and bridge socio-economic disparities.
“At a time when the federal government has successively failed to achieve its revenue targets amidst reports of tax evasions in billions of rupees, a ballooning circular debt despite prolonged and futile attempts to privatize State-Owned-Enterprises (SOEs), any attempts to experiment the political economic constitutional scheme by reversal or alterations should be discouraged”, she said in a statement issued this morning.
Dr. Sharmila Faruqui reiterated the need for progressive tax reforms and enhanced revenue collection efforts, both at the federal and provincial levels. “Rather than encroaching upon on provincial shares, the federal government should be concerned about improving tax collection through the Federal Board of Revenue (FBR) particularly when there are reports of tax evasions surpassing the annual federal revenue targets” she stated.
PPP Lawmaker emphasized the importance of cooperative federalism and urged policymakers to focus on addressing structural issues in Pakistan’s economy. “There are significant structural issues that require reform if Pakistan is to embark back on a sustainable and inclusive growth path but none of them pertain to deconstruct the hard-earned federalism,” Dr. Sharmila Faruqui remarked, highlighting the need for collaborative efforts to address challenges such as climate change, progressive taxation, and privatization.
“The PPP Lawmaker reiterated its commitment to advocating for policies that prioritize the welfare of all citizens and promote inclusive economic growth. “The development of Pakistan and the prosperity of the people should be the priority of all of us,” Dr Sharmila emphasized.
She said that Pakistan stands at a pivotal juncture where the principles of federalism and fiscal equity must prevail over external pressures. Upholding the NFC Award not only reaffirms Pakistan’s commitment to constitutional governance but also underscores its resolve to prioritize the welfare of its citizens above all else, she concluded. (PPI)
