The newly installed PML-N government in Azad Jammu and Kashmir (AJK) is looking for an
In this regard, the AJK government has prepared a detailed briefing for Prime Minister Nawaz Sharif on “what Muzaffarabad wants from Islamabad in the pursuance of two federal government notifications,” issued in 1971 and 1992 by the cabinet and finance divisions, respectively.
Mr Sharif was scheduled to fly to Muzaffarabad on Thursday (Dec 8) to chair the budget session of the AJK Council, have a sitting with the ruling PML-N parliamentary party and attend a briefing on AJK’s overall needs.
All arrangements for his engagements were in readiness, but the visit was put off at the last moment due to “inclement weather.”
Sharing the salient points of AJK’s case with this scribe, Dr Najeeb Naqi, minister for finance, planning and development, said: “Even though our exchequer is hard pressed due to the huge fiscal liabilities inherited from the previous (PPP) government, we will however not seek any one time grant from Prime Minister Nawaz Sharif.”
“Instead, we will request him to direct all the federal ministries and divisions to honour and implement, in letter and in spirit, the 1971 and 1992 notifications, which in turn will help us have sufficient funds on the one hand and ensure our representation, even if as an observer, in all federal entities on the other,” he added.
While the 1971 notification explicitly states that “for all practical purposes AJK shall be treated as a de-facto province,” the 1992 notification deals with AJK’s fiscal needs, such as its share in the federal taxes, yearly increase in its development budget and availability of resources for construction of hydropower projects in the territory.
Mr Naqi recalled that the 1992 notification declared that AJK’s share in federal taxes would be half of Balochistan’s share.
“At that time Balochistan’s share was 5.1pc and ours was 2.27pc… Today, Balochistan’s share has excelled to 9.1pc but ours remains unchanged,” he said, adding, AJK government wanted its enhancement to at least 4.5pc.
Continuing, he said, AJK was being given water use charge of hydropower projects in its territory at the rate of Rs 0.15 per unit while the provinces were earlier getting Rs 0.425 per unit, which had lately been enhanced to Rs1.1.
Mr Naqi said financial issues related to the AJK Council also needed prime minister’s kind attention.
In AJK, income tax and provincial taxes are collected by the department of Inland Revenue that falls under the administrative control of AJK Council.
Of the income tax, the Council retains 20pc for itself and gives 80pc to the AJK government, but the latter has always alleged delays in its release.
Though the entire amount of provincial taxes is given to the AJK government but lately the AJK cabinet has decided to make these collections by itself on the pattern of provinces.
Dr Naqi said the 80:20 ratio was unjust and the prime minister would be asked to revise it to 95:5.
Regarding AJK’s development budget, which is provided by the federal government as “block provision”, he said it was Rs 10bn in 2008-09 and Rs 12bn in 2016-17.
“Even in view of 10pc inflation, it should have been 18bn… We will ask the premier to enhance it to at least Rs 22bn in keeping with our specific needs,” he said.
He said the prime minister would also be requested to include two major roads in CPEC, besides directing the NHA to take over maintenance of major arteries liking AJK with Pakistan.
The AJK finance minister maintained that 95pc of AJK’s recurring budget went to mandatory payments – salaries and pensions – and the remaining 5pc to allowances, leaving no money for the government to take any initiative in any field.
“Huge expansion in AJK’s infrastructure has necessitated recruitment of additional human resource for its utilisation and upkeep, but the government is unable to do any of the two things due to resource constraints,” he said.
Tariq Naqash
