Pakistan 'rejects' IMF's demand for NFC Award revisit

ISLAMABAD: The Pakistan government has rejected the International Monetary Fund’s (IMF) demand for National Finance Commission (NFC) Award revisit, ARY News reported, citing sources.

Citing the shortage of federal funds, the IMF asked Islamabad to revisit the NFC Award with the provinces during the second review talks under the $3 billion loan programme under SBA.

The sources within the government said no any recommendation on the NFC Award against the constitution will not be approved.

Share of provinces under NFC Award will not be cut, however, the federation and its units can devise a joint strategy on the matter, the sources said.

The sources further said that the federation will find ways to increase its income from alternate ways.

Read more: IMF asks Pakistan to revisit NFC Award with provinces

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

The IMF delegation is currently in Pakistan for the second review under the SBA loan programme.

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