ฝัง
- เผยแพร่เมื่อ 9 ก.พ. 2025
- National Finance Commission is a constitutional body for preparing a formula of the division of resources between and among the federal government and provinces. NFC guarantees Fiscal Federalism. So far Pakistan has successfully witnessed 7 NFC award. The first resource sharing Formula was introduced in Pakistan in 1951 during Liaqat Ali Khan government. It was based on half- half bases. After 1971, Pakistan switches over to population-based formulas. At the moment, multiple factor formula is in vogue.
Constitution of 1973: Article 160 delineates the procedure and requirements of NFC.
Members of National Finance Commission|
Finance Ministers of Punjab, Sindh, KPK, Balochistan
Federal Finance Minister (Also Chairman of the Commission)
Any other members appointed by the President of Pakistan
Current Formula for Vertical Distribution:
57.5 % share of provinces and 42.5 % share of federal government.
Horizontal Distribution
Out of 57.5 %, 51.7 % goes to Punjab, 23.4 % is given to Sindh, KPK takes around 14% and 9.1% is Balochistan's share.
There are other transfers too from federal to provinces.
Divisible Pool
NFC Award generalizes the five kinds of taxation, including the income taxes, sales tax, wealth taxes, capital gains taxes, and custom duties taxes, and put these into divisible POOL. The remaining receipts of the federal government are not divided. NFC committees also highlight increasing the tax to GDP ration.
Why this topic is important?
This topic is very important for CSS, PMS and 100 Marks exams as it covers national integration, provincial harmony related essays, and current affairs and Pakistan Affairs topic. Delivered online, the recording of the lecture is being presented here. You can also learn about aid, grants, the foreign debt of Pakistan from IFIs i.e IMF World Bank. CM Sindh Murad Ali Shah has recently rejected NFC constituted by Arif Alvi. He wrote to PM Imran Khan to withdraw the letter from being technically wrong.
For further info: www.finance.gov.pk
www.pc.gov.pk/
If you want to stay updated with the issue, keep following Khaleeq Kiani in Dawn.
The resource person for the Lecture is Mr Akbar Mayo, a CSP officer and a mentor. ( akbar.mayo)
Drop your Questions in Comments. We will try to bring the best answers.
To the point and great work. Very helpful
It is quite rare that somebody has so comprehensively and in a well articulate manner covered a complete topic in urdu. Kindly consider adding a gist of the whole discussion in the last minute of the video along with the slides already shown.. Anyway, sir you have done a great job... God bless you.
Thank you for your sincere feedback and appraisal of the content.
Thank you for your sincere feedback and appraisal of the content.
Informative video👍
thank you soooo much. You have done a great job.
Nice
Nice informarive video
A total of seven awards has been reimbursed since its emergence in 1951, not from 1971 (as you mentioned at 00:58 seconds). Thank you
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Please share your views regarding divisible pool,net unilateral transfers, straight transfers etc
Good sir keep it up
Really very helpful 😍
Thanks for the video. But, improve video quality and sound system. And provide to the point information as per law.. You have to improve
NFC award was announced in 1951
Article 160 (1) tells us composition of NFC
nice information
Thanks
Good Video sir..👍..i can easily understand this topic because you are explaining in Urdu so it can easily coutch the points..
Vertical distribution and horizontal distribution
gd
Thanks sir plzz IR ko bhe share kya kro complet part 1 and 2
Sure.
Please share the recent 18th amendment issue
@@ImranKhan-ik8zu th-cam.com/video/7K5wr0guL_8/w-d-xo.html
Sir v good video, plz tell I have to prepare fpsc interview but not for css, for bs 17 teaching, kindly give clear guideline for it, I got guideline for css interview from Internet not for general interview
How does IPD favor Balochistan in the distribution of funds? Pl elaborate.
As Punjab has highest population and the same being one of the criteria favors the province, Baluchistan has highest IPD and the same being one of the factors of formula favor Baluchistan far more than other provinces.
For further details, hereunder is our reply to another question above:
Inverse population density indicates the dispersion of the population in a given area.
Population Density is calculated by dividing the population of the region by its Area. Whereas IPD is derived by dividing 1 by Population Density.
Balochistan must have higher inverse population density as it has lower population per square km area compared to Punjab and other
provinces.
There are four factors. One favoring each province first of all. IPD is favoring Balochistan.
At the time of Award, the population of provinces and their areas and pop density were as following.
Province===Population======Area=== =====Pop Density====-IPD=====
Punjab 73,621,290 205,3545- 358.52 0.0028
Sindh 30,439,893 140,914 216.017 0.0046
KPK 17,743,645 74,521 238.102 0.0042
Balochistan 6,565,885 347,190 18.911 0.0529
Out of 57.5%, Punjab gets 51.7% while remaining gap is meager fraction of 5.8. .Shouldn't this figure be divisible amongst remaining provinces? Thanks in anticipation
Divide 57.5% into four parts as per following because totoal provincial share is 57.5%, remaining 42.5% is federal govt share.
57.5% of Divisible pool is distributed among provinces as per following.
Punjab = 51.7% of 57.5%
Sindh= 24.5% of 57.5%
KPK= 14.6% of 57.5%
Balochistan= 9.09% of 57%
Hence if Divisible Pool is Rs 100 for any year the total provincial share will he 57.5 Rs out of which each provinces will be given as per following.
Punjab = 51.7% of 57.5 Rs= 29.7 Rs
Sindh= 24.5% of 57.5 Rs= 14.08 Rs
KPK= 14.6% of 57.5= 8.4 Rs
Balochistan= 9.09% of 57.5= 5.3 Rs
If you want to calculate the actual share of the current financial year, divide Rs 3200 billion as per above formula
Thank you sir for the elaborate reply.
@@akbarmayo8236 Sir, is this Division still the same ???
Sir correct your statement k "5 sal bad kia jata ha" 5 sal bad hona chaye
Yes. True. NFCs have not always been constituted every five year.
sale tax and income tax should bee collected by provinces only a small share allocated for federal govt
In majority of countries, Income Tax is a federal levy.
@@CSPForum
so whats left for provinces
PAK's financial model:
A never-ending blame game between federal govt & provinces
Other countries' model:
Provinces don't take a single $ from federal, they generate their own 💰, federal can't collect any tax except a tiny amount needed for federal services
Yes, provinces do collect very little as compared to their potential.
وفاق کون کون سے ٹیکس عائد کرتاہے ۔۔ ؟؟؟؟
Income Tax
Sales Tax on Goods
Federal Excise
Customs
آپکی آواز کم اور کوے کی زیادہ آرہی ہے کسی اچھی جگہ بیٹھ کر ریکارڈ کیا کریں
Thank you for your feedback.
Bakwas and misinformation 😂😂😂😢😢