BHC annuls NFC notification, says members appointed unconstitutionally.

QUETTA -- The Balochistan High Court (BHC) on Tuesday annulled the notification issued by President Dr Arif Alvi for constitution of the 10th National Finance Commission (NFC), ruling that the appointment of NFC members was not in accordance with the constitution.

In its judgement, the court also annulled the appointments of Finance Adviser Abdul Hafeez Shaikh and the federal finance secretary as members of the NFC.

The court, while issuing orders for implementation of Article 160 for the appointment and procedure of members of NFC Awards, remarked that the Balochistan governor should appoint a new member from the province on the recommendation of the provincial government.

The NFC is meant to distribute financial resources among the federal government and the provinces. It includes distribution of taxes collected by the federal government which form a divisible pool. According to Article 160 of the Constitution, the president constitutes the NFC after every five years for a period of five years. Once there is a consensus of all stakeholders on a particular formula to distribute the finances, the award is implemented for the next five years.

The Pakistan Tehreek-e-Insaf (PTI)-led federal government on May 12 formed the 10th NFC to announce the new award. The Ministry of Finance notified constitution of the 11-member commission after approval by federal and provincial members and its terms of reference by President Alvi. The commission will, however, effectively consist of 10 members as the president also authorised PM's Adviser on Finance Dr Abdul Hafeez Shaikh to chair NFC meetings in the absence of the federal finance minister.

A similar case is pending before the Islamabad High Court (IHC) in which the petitioner, PML-N leader Khurram Dastgir Khan, has submitted that there is no room in the constitution for a PM's adviser to become even a member of the commission. The commission will have four provincial finance ministers and four non-statutory members representing the provinces and the federal finance secretary as official expert.

In his arguments before the IHC bench, Khan's counsel Umar Gillani said adviser to the PM could not become a member of the commission and even for appointment of non-statutory members, it is necessary to first consult with the governor of the respective province.

...