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Provinces are asked to take CPEC generated income through National Finance Commission

According to a reliable resource, Minister of State for Ministry of Finance and Economic Affairs Rana Afzal has made statement about the distribution of income generated from CPEC. As per to official documents it is stated:

“Any increase in income generated by CPEC projects will come into Federal Consolidated Fund for further distribution between Federation and Provinces. Therefore, the impact of income generated by CPEC projects will have positive impact on the income of provinces through NFC Award,”

According to these official financial documents, the federal government would transfer the generated income from dividable pools to the allocated provinces under NFC award. Under which the government is bound to transfer 57.5% among the four provinces.

The federal government has already announced that new NFC award would not be based on population of provisional results of the population census. The upcoming government would make a fresh income sharing formula between the center and province based on latest population census.

Under CPEC the income would be distributed through 7th NFC award. As we know that the previous 5 years term of arrangement had expired on 30th June, 2015. Since for the 3rd consecutive year, the government has given an extension to develop the new NFC award till the current fiscal year 2017-18.

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