Pakistan considers financial mechanism for Gilgit-Baltistan
In Pakistan, the federal government is considering a mechanism to grant Gilgit-Baltistan a share in the distribution of funds by the National Finance Commission (NFC). At the same time, consultations are continuing on the region’s constitutional and legal status, said Federal Minister for Law and Justice Senator Azam Nazeer Tarar.
Gilgit-Baltistan currently receives annual financial grants from the federal government, while regional authorities have repeatedly demanded inclusion in the NFC mechanism. As Dawn reports, Tarar said that all stakeholders would be involved in discussions on the region’s future administrative and constitutional arrangement.
Working group prepares proposals
The minister invited Gilgit-Baltistan Chief Minister Amjad Hussain Advocate and opposition leader Hafiz Hafizur Rehman to the next meeting of the working group on the region. The meeting, chaired by Tarar, was attended by representatives of Gilgit-Baltistan, the ministries of defence, foreign affairs, Kashmir affairs and Gilgit-Baltistan, as well as the Gilgit-Baltistan Council.
Participants reviewed constitutional, legal, financial and administrative issues, previous reports, possible constitutional options, and proposals to strengthen the region’s financial resources. Tarar instructed the working group to prepare practical proposals, an interim report and recommendations for the main committee. According to him, agreeing on a constitutional and legal solution would require more time and a national consensus.
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Model based on Azad Jammu and Kashmir
Meanwhile, the Gilgit-Baltistan Assembly unanimously approved a proposal for a financial agreement between the federal government and the region, modelled on the arrangements with Azad Jammu and Kashmir. The initiative had previously been approved by the Gilgit-Baltistan cabinet.
Amjad Hussain said that the federal government’s financial division had noted that Gilgit-Baltistan could become an NFC member only after a constitutional amendment, as the region is not a constitutional part of Pakistan. Until such an amendment is adopted, it has been proposed to apply a model similar to the mechanism for Azad Jammu and Kashmir.
According to the chief minister, the region’s financial deficit stands at about 17 billion Pakistani rupees, with estimated needs of 320 billion rupees. The proposed agreement provides for the federal government to allocate 250 billion rupees. A committee established by Prime Minister Shehbaz Sharif is also studying an NFC-based resource distribution mechanism to ensure predictable financial transfers to the region.
