Panel seeks 50% gas share for provinces

ISLAMABAD:

The Senate Functional Committee on Devolution on Friday directed the federal government to ensure that provinces receive a 50% share of revenue generated from oil and gas produced within their territories in accordance with the 18th Constitutional Amendment.

The committee, chaired by Senator Zamir Hussain Ghumro, was attended by Senators Poonjo Bheel and Jan Muhammad Baloch.

Reviewing implementation of the 18th Amendment with regard to oil and gas revenue, Senator Ghumro said the federation was receiving its constitutional share while producing provinces were being denied their due rights, creating a sense of deprivation.

The committee sought complete details of payments made to the provinces over the past 16 years.

Ghumro expressed serious concern over what he termed the incomplete implementation of the 18th Amendment and the revival of federal ministries that had previously been devolved to the provinces.

He recalled that under notifications issued on Dec 2, 2010, April 15, 2011, and June 29, 2011, a total of 17 ministries dealing with provincial and concurrent subjects had been transferred to the provinces. "Re-establishment of ministries dealing with provincial subjects after June 30, 2011, was illegal," he said.

According to him, education, health, national food security, culture and heritage, climate change, social initiatives, housing, EOBI, Evacuee Trust Property Board, Zakat and Ushr and several other institutions were functioning in areas that constitutionally fall under provincial jurisdiction.

Senator Ghumro said that although the federal government maintained these ministries were only responsible for matters relating to the Islamabad Capital Territory (ICT) and federal obligations, the number of federal ministries had increased from the constitutionally envisaged nine to 31.

"The Constitution envisages federal ministries dealing with defence, foreign affairs, finance, commerce, communications, maritime affairs, science and technology, law and justice, and parliamentary affairs."

The committee chairman said federal expenditure had risen to around Rs19 trillion, while the country's combined tax and non-tax revenue stood at approximately Rs20 trillion.

He maintained that, apart from defence expenditure, which he described as justified in the prevailing security environment, spending on other federal ministries should not exceed Rs1 trillion.

According to him, restricting federal expenditure to Rs13 trillion could save Rs5 trillion to Rs6 trillion annually, reduce dependence on foreign borrowing and strengthen the country's financial sovereignty.

He also voiced concern over the ineffective functioning of the permanent secretariat of the Council of Common Interests (CCI) and called for restructuring the federal administrative system in accordance with the Constitution.