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PESHAWAR: Pakistan's Federal Finance Minister Shaukat Aziz Saturday said that the federation and all the four federating units are close to settle the issue of distribution of resources and hinted at 45 plus share for the provinces from the divisible pool in the next NFC Award.

Briefing newsmen about the items discussed in the 5th meeting of the NFC held here, Shaukat Aziz said, "we are heading in the right direction with regard to distribution formula", he said and added, "we have made a lot of progress in today's meeting" and said the next meeting of NFC will be held in Quetta.

He said, the NFC meeting was held in cordial atmosphere and a feeling of consensus had been developed among the members over the core issues and hinted at an historical award by March 31, so that the provinces made their budgetary proposals according to the new award.

Aziz said, two items were on the agenda of the NFC's meeting i.e. evolving of mechanism for distribution of resources from federal divisible pool and Gas Development Surcharge (GDS). Shaukat Aziz said, lot of progress was made on various issues in informal meetings among the finance ministers of all the four provinces held here yesterday which was spread over three sessions.

He expressed the hope that the net hydel profits issue would be resolved before finalising the NFC Award. The issue, he said would be settled through arbitration between the NWFP, and Wapda.The NWFP has already named its three arbitrators, he added. The decision of the Arbitration Council will be binding on both the parties, he said.

With regard to GDS, he said, the provinces of Sindh and Baluchistan reached an agreement in the meeting. The NWFP and Punjab have been directed to file their comments before next meeting on gas development surcharges. "We are hoping an early settlement on this issue", he maintained. To a question, the Finance Minister said, poverty problem is not restricted to NWFP alone and added that economic indicators were showing upward trend in per capita income and GDP growth. He assured to accommodate requirement of every province in the forthcoming NFC Award.

It is a natural phenomenon that resources are always short of the demands but it is the system and methodology adopted for fair and equitable distribution of resources, Shaukat Aziz remarked. He said that the federation will increase share of the federating units from the divisible pool. It is the responsibility of the provinces to ensure its just and judicious distribution.

To a question, he said that as per the constitution the NFC award has to be unanimous, therefore all the five parties have to agree to it. The NFC has a clear mandate of distribution of resources in equitable manner, therefore, Poverty Reduction Strategy Programme is a different subject, he told a questioner.

In reply to a question, Shaukat Aziz said, the federation takes the exchange risks and repayment guarantee on loans extended to the provinces directly by the donor agencies. This is a kind of measure to accelerate poverty reduction programmes and rate of development in the provinces.

Speaking on the occasion Senior NWFP Minister Sirajul Haq expressed the hope that next NFC award will be revolutionary and not conventional. The members are showing extreme constraints during deliberations on various issues involving distribution of resources. The members of the NFC, he said, are in a good mood to take better steps especially Punjab. He urged the Finance Minister Shaukat Aziz to supervise the arbitration process with regard to settlement of net profit issue. However, he made it clear that the NWFP will not sign the NFC award unless the issue of net profit was resolved in accordance with AGN Kazi formula.

Finance Minister Punjab Sardar Husnain Bahadar Dareshak in his remarks on the occasion said, his government would accept the arrangement to be made by the government for the settlement of the issue of Gas Development Surcharge. He said, the members reached closer to their targets in today's NFC meeting. He hoped that the net hydel profit issue would be settle down shortly.

Finance Minister Baluchistan Syed Ihsan Shah in his views on the occasion said, the matter of GDS has been settled in today's meeting and hoped that NFC will finalise its report by March 31.

Abdul Qayum Lodhi, member NFC from Sindh said, NWFP and Punjab are to be included in GDS lists as they have sufficient gas reservoirs. He hoped that there is no difficulty in settling down the GDS matter.