Naya Pakistan!

Federal govt, which remains as elaborate as before 18th Amendment, has been trying but failing to make ends meet.

Pakistan is currently passing through two separate phases of transition simultaneously — one, from an extended unconstitutional rule to a constitutional dispensation and the other, from a hybrid system of governance imposed by extraconstitutional forces to a federal system retrieved by the Eighteenth Constitutional Amendment. The first of the two transitions began in 2008 with the demise of a dictatorial regime. The other one began on June 5, 2013 when Nawaz Sharif took oath of office. The first phase of transition is expected to continue until all the instruments of governance and the chief executives at the centre and the provinces learn to operate within their respective parameters set by the Constitution, while at the same time be accountable to parliament. How long will it take to complete this phase, known to be highly accident prone? One guess is as good as the other. The second one is expected to continue until the provinces develop adequate capacities to self-govern with a degree of success. A time frame for the duration of this phase as well cannot be scheduled because the process is prone to be influenced by a multitude of variables.

In a truly federal system, it is the provinces which collect most of the taxes and contribute, each according to its earning capacity and of course, after deducting enough for its upkeep, to the federal government, which normally does not have more than some select responsibilities — defence, foreign affairs, communications, federal security and foreign trade. However, perhaps because of the vast economic disparities among the four provinces, Islamabad continues to collect most of the taxes and distributes to the four provinces a predetermined share to each from the divisible pool, according to an equitable formula designed by the National Finance Commission (NFC). And paradoxically, since the seventh NFC Award, finalised in 2009, the federal government, which continues to remain as elaborate as it was before the Eighteenth Amendment, has been trying but failing badly to make the two ends meet with the meagre residual resources available to it.

Under the Eighteenth Amendment, five ministries and related departments are to be transferred to the provinces. Why this has not happened so far is a matter of serious concern because while the resources have been transferred to the provinces, most of the original responsibilities continue to be shouldered by the federation causing the federal budget to remain perpetually in the red. From the core ministries, an estimated 40,000 people are to be transferred to the provinces and if the staff from related bodies is also included, the number is estimated to reach millions. The federal government has already announced that none of the employees not wanting to move to the provinces from these ministries will be sacked or put in the central pool. The earlier a decision is taken in this regard, the better it would be for the federation, as it is also providing subsidies from the national exchequer to PEPCO, the Railways, the Pakistan Steel Mills, PIA, etc.

This is certainly an untenable arrangement. So, in order for the federal government to cover its expanding size and expansive resource requirements, it either needs to dismantle the overlapping ministries and departments or it reverts to the NFC formula in vogue before 2008 or still, removes the Eighteenth Amendment from the Constitution, curtailing provincial autonomy to the pre-2008 level. At this late stage, any of the three alternatives do not look practicable. So, the only option left for the federal government is to start implementing the Eighteenth Amendment in letter and in spirit, slashing its size to a level that could be adequately funded by the residual resources.

Since the passage of Eighteenth Amendment, the all-powerful federal bureaucracy, perhaps sensing its control on the levers of power slipping, has been putting all kinds of administrative hurdles in the way of a smooth transition from a unitary to federal system of governance. The most convincing argument being used is the presumed inadequate provincial capacities to shoulder the challenge of the increased responsibilities. But then, it was the same argument used by the champions of the One Unit when it was being dismantled or for that matter, when the subcontinent was struggling against the colonial yolk.

Published in The Express Tribune, June 19^th, 2013.

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