NFC forms another body to review GDS formula

ISLAMABAD - National Finance Commission in its meeting here on Friday appointed yet another committee to review the formula for distribution of Gas Development Surcharge (GDS).
Two subgroups of the NFC are already working separately on vertical and horizontal distribution of resources amongst the provinces and the Centre.
The GDS committee would include Chairman Oil and Gas Development Authority (OGRA), Secretary Petroleum and Natural Resources, and members from all the four provinces as its members. While talking to the media after the NFC meeting, Finance Minister Shaukat Tarin said that the provinces have agreed on the revision of formula for the division of resources for the 7th Award under the NFC.
NFC award would be fair and would be finalised according to the Constitution of Pakistan, the Minister said. The federation has demonstrated magnanimity and the provinces should also respond in the same spirit, he added.
According to the minister, the GDS review committee would consult all the stakeholders including the Oil and Gas Regulatory Authority (OGRA. He told the media that the NFC would meet in Quetta on October 12-13. Responding to journalists inquisitions about the lack of consensus in the NFC so far, the Minister said that the situation would be clear in next seven to eight meetings of NFC.
Responding to touchy questions of General Sales Tax on services becoming the bone of contention between the Centre and the provinces, he said, legal experts would review the issue. He assured that no extra constitutional step would be taken in the division of shares to provinces from the divisible pool.
The Minister said that the recommendations of the provinces regarding the NFC would be duly incorporated after reaching a consensus over all the issues. Punjab Minster for Finance, Tanvir Ashraf Kaira told the reporters that the formula of GDS distribution should be based on equality. According to the provincial finance minister, Fridays session of NFC focused on GDS. Since Balochistan had already given the presentation during the previous session, Sindh briefed the Commission about GDS on Friday.
It should also be determined that either the GDS income was used in developmental projects or not, he added.
NWFP Minster for Commerce, Hammyun Khan called for a just distribution of national resources among the provinces, which he said would help tackle the problems being faced by the provinces.
Finance Minister of Balochistan Mir Asim Kurd said that his province has presented its viewpoint on GDS. He said that an outstanding amount of Rs300 billion of the province be paid to lessen financial problems of the provinces.
He called for changing the existing NFC formula and demanded that Balochistan be given its due share, chiefly, royalty on gas.
Chief Minister of Sindh Syed Qaim Ali Shah hoped that the issue of royalty be resolved amicably. He was of the view that there is a difference of opinion on the position of GDS between Sindh and Balochistan. He called for amicable solution of the just distribution of resources based on revenue generation.
Syed Qaim Ali Shah said Sindh has sufficed 72 per cent of gas requirements in the country.