The Pakistan Peoples Party (PPP) has proposed the alternative measures instead of changes to the NFC Award.
According to details surfaced on Thursday, important progress has been made in talks between the government and its coalition partner, the PPP, over the new federal budget. Flexibility was shown regarding the defence budget, customs duties and a new method for the distribution of resources.
The PPP has sought more time for consultations on the proposal to return the education and health sectors to the centre. Both sectors were transferred to the provinces under the 18th Constitutional Amendment.
Negotiations are also continuing on the distribution of powers and funds linked to the Benazir Income Support Programme (BISP). Proposals are under consideration to alter the funding formula without placing the programme under provincial control.
The government has agreed in principle to include the PPP’s recommendations regarding development funds in the budget. The party’s working paper will form part of detailed consultations with the government team.
The PPP has also called for additional funds to be allocated for the rehabilitation of flood-affected areas and infrastructure projects.
Sources said backchannel contacts between the government and the PPP were also continuing regarding the proposed 28th Constitutional Amendment. Progress on constitutional and financial matters is expected after the approval of the budget.
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