IMF asks Pakistan to revisit NFC Award with provinces

The International Monetary Fund (IMF) has called upon Pakistan to revisit the National Finance Commission (NFC) award with the provinces, ARY News reported on Friday.

This demand came during the second day of talks between Pakistani officials and the IMF under the second review of the $3 billion standby arrangement (SBA).

Article 160 of the Constitution authorizes the president to approve the distribution of revenues between the federation and the provinces through order of the NFC Award.

The newly formed government informed the IMF delegation that the provincial shares could not be reduced without a constitutional amendment and made all the provinces agree to a new formula.

The 2010 NFC award had been agreed for five years but since then there has not been any consensus to revisit it.

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The international lender also sought a plan for Pakistan International Airlines and other government entities privatization.

During the talks the IMF delegation raised concerns on the performance of the energy sector, the sources within the ministry revealed.

The delegation was also briefed on the domestic financing, government guarantees and the expenses of the health and education sectors during the meeting.

A nod from the IMF would unlock the $1.1 billion loan tranche for Pakistan.