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Consensus reached on

provinces share in

divisible pool

LAHORE: Consensus has been achieved among all the provinces on the issues relating to their share from the divisible pool under National Finance Commission.

This was stated by Punjab Finance Minister Muhammad Afzal Sindhu while talking to newsmen here on Saturday after inaugurating a conference on "Inflation and its Control" at a local hotel.

He however declined to give details of the last meeting of the special committee of NFC held in Quetta recently. Sindhu said that it has been agreed that nothing would be disclosed before the final meeting of the members of the committee with the federal government.

He hoped that members of the NFC special committee will meet with the federal government representatives in first week of May. He however, said that share from tobacco and sugar will be included in the next NFC award as has been decided in principle.

Replying to a question, the Punjab Finance Minister said that all the provinces agreed to reduce the 20 per cent share of the federal government from the divisible pool of the NFC.

The minister said that the next year's provincial budget will be presented in the assembly in the first week of June. He said that preparations for the budget have been started and the finance department officials have been meeting with the representatives of all the departments.

Afzal Sindhu said that government was also planning to introduce new taxes including agriculture tax in the province to raise its revenue. He said he was in favour of agriculture tax and added that the people should be educated to achieve self- reliance in all the fields.

He said that in the present unipolar world, it has become important that the developing nations keep their expenditures within their resources.

Answering a question about utilization of development funds, the Finance Minister said that there was over 70 per cent utilization so far. He, however, said that the departments which do not utilize their development funds, would have to face a cut in budget in the next budget according to the ratio of less utilization.

Sindhu pointed out that according to NFC award announced in 1990, Punjab's share in the divisible pool was 57.88 per cent according to its population's share of 61 per cent. Sindh was given 23.28 per cent, FP got 13.54 per cent and Balochistan was awarded 5.3 percent share.

Body to reduce inflation

rate formed

Sindhu said inflation has become an unavoidable factor in the economy and to maintain zero inflation rate was very difficult due to various economic factors.

The Minister said that inflation was something unavoidable but rising inflation rate, particularly double digit inflation rate was a matter of great concern which should be given due attention to streamline the national economy.

He said that a high level committee has been constituted by the federal government to recommend ways and means to reduce the inflation rate.

The Minister hoped that the experts participating in the conference will prepare useful recommendations for the guideline of the government to help reduce the inflation rate.

Dr. Munir ud Din Chugtai, former Vice Chancellor of Punjab University said that both long term and short term policies should be adopted to control inflation.

Instead of taking ad-hoc measures, the government should chalk out comprehensive policies so that the investment could be streamlined and the rising inflation rate could be brought under control, he added.

Mian Fazal Ahmad, Convenor organising committee of the conference and Chief Editor monthly The Development Times in key note address, said that inflation was infact an upward movement in the average level of prices.

He said that increased budget deficit, debts re-scheduling were the direct impacts of rising and uncontrolled inflation which upsets the macro economic situations adversely in developing countries.

The major factors affecting inflationary system in a developing economy are the international prices of goods and services, local tax and duty structure, industrial and agricultural productivity governed and state's expenses levels especially of unproductive type.

In the other technical sessions, papers were read by Sheikh Waheed ud Din Senior Vice President LCCI, Dr. Shaukat Naizi Chief of International Economies, Planning and Development Division, Khizer R. Qureshi, Tariq Hamid, Former President LCCI, Dr. Khawaja Amjad Saeed former Pro-Vice Chancellor Punjab University and Dr. Gulzar Ahmad Gill, Assistant Professor Government College Lahore.-APP