Latest news with #18thConstitutionalAmendment
Express Tribune
3 days ago
- Politics
- Express Tribune
ANP slams budget, 18th amendment assault
Awami National Party (ANP) Khyber-Pakhtunkhwa President Mian Iftikhar Hussain has strongly condemned what he described as an attack on the 18th Constitutional Amendment, national rights, and provincial autonomy. He said the recently presented federal budget has deliberately ignored K-P — particularly the merged tribal districts — which amounts to a grave injustice on constitutional, political, and state levels. He made these remarks while presiding over a high-level meeting at Bacha Khan Markaz. The session was attended by provincial general secretary Hussain Shah Yousafzai, other senior party officials, legal advisors, and presidents and secretaries from the merged districts. The meeting thoroughly reviewed the current political and financial situation. Participants expressed deep concern that the promises made to the merged districts were neither included in the federal budget nor mentioned in the provincial budget. Mian Iftikhar said this reflects a deliberate policy by the state to sideline and disappoint these regions. He emphasized that if the merged districts are granted their constitutional, political, and financial rights, not only will these areas strengthen, but the entire province will benefit. Unfortunately, he said, the state continues to act in the opposite direction.
Business Recorder
5 days ago
- Business
- Business Recorder
Cabinet Division: NA approves Rs81.45bn demands for grants
ISLAMABAD: The National Assembly approved Rs81.45 billion demands for grants for the Cabinet Division by rejecting more than 225 cut motions moved by opposition to meet expenditure during the financial year ending on June 30, 2026. Federal Finance Minister Muhammad Aurangzeb presented demands for grants in the House for approval. The opposition members severely criticised the performance of the Cabinet Division and said that the total strength of Cabinet of the Prime Minister should not be increased beyond 11 percent of total members of the National Assembly under 18th Constitutional Amendment. Opposition members Alia Kamran, Malik Aamir Dogar, Ali Muhammad, Khawaja Sheraz and others criticised the performance of the Cabinet Division. Khawaja Sheraz said that there is Rs6 billion budget allocation of the National Assembly Secretariat while the allocation of Cabinet is Rs44 billion. He said, 'there is huge budget of Cabinet Division but its performance is zero.' Ali Kamran said that the government affairs run through Cabinet and its strength should not increase beyond 11 percent of the total strength of the National Assembly. She said that the government has crossed the limit by appointing special assistants and advisers. The demands for grants which were presented by the finance minister include, emergency relief and repatriation, atomic energy, Pakistan nuclear regulatory authority, Naya Pakistan Housing Development Authority, Prime Minister's Office (Internal), Prime Minister's Office (public), National Disaster Management Authority, Board Of Investment, Prime Minister's Inspection Commission, Special Technology Zone Authority, National Anti-Money Laundering and Counter Financing Terrorism Authority, Cannabis Control and Regulatory Authority, Establishment Division, Federal Public Service Commission, Federal Public Service Commission, National School Of Public Policy, Civil Services Academy, National Security Division, Council Of Common Interests, (Secretariat, Special Investment Facilitation Council Division (SIFCD), Intelligence Bureau Division, development expenditure of Cabinet Division, development expenditure of Board of Investment, development expenditure of Special Technology Zones Authority Division, development expenditure of Establishment Division and capital outlay on development of atomic energy. While winding up the discussion on the cut motions, Federal Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhary said that the size of the federal cabinet is well within the constitutional limit, and the country's economy is showing signs of improvement. He rejected all motions moved by the opposition and defended the performance of the cabinet. Fazal explained that under Article 92(1) of the Constitution, the federal cabinet cannot exceed 11 per cent of the total National Assembly membership. 'The current cabinet has 42 members, which is four less than the allowed limit of 46,' he said. He said that when the present government took office, Pakistan was facing a severe economic crisis and risked default. 'Today, economic indicators are stable, and key sectors are recovering,' he stated. He said that the government has revived the China-Pakistan Economic Corridor (CPEC), introduced tax reforms, and is promoting investment in sectors such as energy and agriculture. 'The energy sector has undergone major reforms, and initiatives in agriculture are effectively addressing long-standing challenges,' he added. Fazal said that the Special Investment Facilitation Council (SIFC) has played a major role in attracting billions of dollars in foreign investment. 'The SIFC was created to remove hurdles in investment and ensure timely project implementation,' he explained. Copyright Business Recorder, 2025
Business Recorder
07-06-2025
- Business
- Business Recorder
Beyond the divide: rethinking federal-provincial collaboration for economic transformation—I
As Pakistan stands at a critical economic crossroads—grappling with slow growth, rising debt, and deepening inequality, the need for deeper and more effective federal-provincial collaboration has never been more urgent. Real prosperity will not come from centralization or control, but from empowering provinces to be the architects of their own development. Stabilizing the economy, attracting foreign investment, and unlocking the country's vast untapped potential requires a governance model that empowers provinces to act as true partners in national development. While fiscal federalism is enshrined in Pakistan's constitutional framework, it remains weakened by fragmented planning, uncoordinated policymaking, and an inequitable allocation of resources. The 18th Constitutional Amendment marked a pivotal step toward decentralization, devolving significant powers to the provinces. Yet, the envisioned collaborative framework between federal and provincial tiers has struggled to take shape. This disconnect not only impedes coherent economic strategy but also undermines the ability of provinces to mobilize their unique assets. National prosperity depends on activating subnational growth engines—but a highly centralized system continues to restrict provincial autonomy in areas such as fiscal authority, investment facilitation, and infrastructure control. This article makes the case that unlocking Pakistan's true economic potential demands a bold reimagining of federal-provincial collaboration—one built on trust, accountability, and a commitment to shared national goals. Using Khyber Pakhtunkhwa (KP) as a vivid example, it highlights both the immense opportunities and the systemic institutional hurdles holding back progress. The insights here are inspired by a compelling conversation between KP's Finance Minister Muzzamil Aslam and renowned economist Dr. Nadeemul Haq, whose perspectives shed light on the urgent need for reform. A flawed fiscal compact: rethinking the NFC and the federal-provincial contract The current fiscal framework, established under the 7th National Finance Commission (NFC) Award in 2010, allocates 57.5 percent of federal revenues to the provinces. While this arrangement was intended to strengthen provincial autonomy following the 18th Amendment, its promise is fading fifteen years on. Provinces have become heavily dependent on federal transfers, contributing only about 1 percent to the national tax-to-GDP ratio, while the federal government remains responsible for over 90% of revenue collection and all debt servicing. This imbalance has severely strained the federal budget, limiting its ability to invest in national priorities such as defence, infrastructure, and climate resilience. Meanwhile, provinces now bear the bulk of expenditures in critical sectors like health, education, and local development—but lack the fiscal tools and revenue authority to sustainably finance them. This mismatch is further exacerbated by IMF-imposed provincial primary surplus targets, which compel provinces to cut back on development spending to support federal deficit reduction efforts, even as their own service delivery obligations expand. The absence of integrated planning and data-sharing mechanisms between federal and provincial governments further compounds inefficiencies and leads to duplication of spending, particularly in overlapping service delivery sectors such asocial protection, health and education. A disjointed fiscal federation Despite constitutional devolution under the 18th Amendment, economic policymaking continues to be overly centralized. Key domains—such as excise duties on tobacco, electricity pricing, and mineral royalties—remain firmly within federal control, limiting provinces' ability to capitalize on their unique comparative advantages. For instance, KP produces 78 percent of Pakistan's tobacco—yet cannot set meaningful fiscal policies due to federal dominance over excise taxation. While the federal government earns over PKR 550 billion from tobacco excise, KP receives only 14.62 percent of the divisible pool, and its own provincial excise efforts are mired in legal challenges and regulatory overlaps. Despite its potential in green energy, minerals, tourism, and agriculture, KP remains confined by institutional and regulatory barriers: It cannot issue provincial bonds or access international finance without federal approval. It lacks control over transmission infrastructure and energy regulation. It has no dedicated investment authority for its diaspora, despite contributing nearly one-third of Pakistan's remittances. Visa restrictions and negative media portrayals deter investors, despite an impressive tourism safety record. Unfair electricity pricing: the green energy dilemma If provinces were empowered to lead their own energy policies, Khyber Pakhtunkhwa (KP) could help power half the country. With a hydropower potential exceeding 30,000 MW—of which 5,626 MW is already being generated from major projects like Tarbela, Warsak, and Gomal Zam—KP has a unique comparative advantage in clean, affordable energy. The province produces electricity at an average cost of PKR 7–8 per unit. Yet, paradoxically, it is forced to buy this electricity back from the national grid at exorbitant rates of PKR 65–72 per unit due to centralized pricing, rigid federal regulation by NEPRA, and prohibitive wheeling charges imposed by entities like NTDC and PESCO. This structural inefficiency discourages both public and private investment in local energy solutions. KP's attempts to sell surplus electricity directly to industries through bilateral wheeling arrangements have repeatedly stalled due to wheeling charges as high as PKR 27 per unit—rendering such transactions commercially unviable. More than 20 hydropower projects are currently under development, including Pehur, Ranolia, and DaralKhwar, but without timely federal approvals and grid access, many risk becoming stranded assets. The province has taken proactive steps to unlock its energy potential: hosting investor roadshows, crafting investment-friendly policies, and reaching out to the private sector. However, without federal alignment on transmission access, pricing, and regulatory autonomy, these efforts have limited impact. The consequences are serious. KP—despite its resource abundance—remains energy-poor. Industries face high electricity costs, household bills continue to rise, and potential job creation and economic growth are stifled. Households consume 56% of electricity in KP, followed by industries (24%) and commercial/government use, yet all segments bear the brunt of inflated tariffs driven by inefficiencies in the national system. Further compounding the issue is the prolonged delay in Net Hydel Profit (NHP) payments owed to KP by the federal government. These funds could have been reinvested to expand the province's renewable energy base and reduce dependency on expensive imports. The paradox is stark: a province rich in green energy is shackled by a centralized framework that neither rewards efficiency nor promotes equity. Unleashing KP's energy potential—by decentralizing authority, rationalizing wheeling charges, and ensuring timely NHP payments—could lower national energy costs, enhance industrial competitiveness, and drive sustainable economic growth both within the province and across Pakistan. Natural resources and neglected rights Khyber Pakhtunkhwa is not just an energy province — it's a national resource powerhouse. It contributes 52 percent of Pakistan's crude oil, 13 percent of natural gas, and 46 percent of LPG production. Its mining and quarrying sector grew by over 14 percent last year, driven by coal, oil, gas, and mineral extraction. Yet, despite this output, KP has little control over how these resources are priced, taxed, or managed. Federal constraints prevent KP from monetizing its share of oil and gas. Direct sales are restricted, provincial transmission capacity is limited, and key decisions—such as issuing exploration licenses—remain under federal control. This leaves KP dependent on federal disbursements, which are frequently delayed or contested, undermining fiscal stability and planning. The province's rich mineral and forest wealth also remains underutilized. KP holds 45% of Pakistan's forest cover and contributes more than half of the country's carbon sink, yet it receives no economic benefit—no carbon credits, no fiscal incentives, and no meaningful recognition for its environmental stewardship. Similarly, while the 18th Amendment devolved several sectors, others like tobacco remain under federal control. KP produces 78% of Pakistan's tobacco, but has no regulatory authority or revenue autonomy over it. In a functional federation, such contributions would be rewarded and leveraged. In Pakistan, they are often overlooked—leaving KP with vast resources but limited returns. Trade: a strategic gateway left closed Khyber Pakhtunkhwa's geography makes it a natural trade gateway to Afghanistan, Central Asia, and western China. Yet its strategic position remains underutilized. Ten out of twelve border terminals with Afghanistan remain non-operational, while KP is excluded from federal trade negotiations and infrastructure planning that directly affect its economic future. Local producers struggle to scale exports due to outdated logistics, non-tariff barriers, and inconsistent security protocols. The lack of provincial authority over trade and transport policy has choked KP's export potential and stifled regional trade integration. Despite its potential to become Pakistan's northern trade hub, KP is sidelined from economic diplomacy and denied the autonomy to pursue cross-border commerce. Until trade facilitation is devolved and provincial voices are included in national planning, the province's gateway advantage will remain blocked. Tourism: a powerhouse constrained Tourism is one of KP's most dynamic and fastest-growing sectors. The province attracted over 20 million domestic and 5,400 international visitors in 2024, contributing significantly to job creation and the services economy. With 45% of Pakistan's forests, dramatic mountain ranges, and rich cultural heritage, KP has all the ingredients of a global tourism destination. Yet this potential is held back by federal bottlenecks. Restrictive visa policies, mandatory NOCs for foreign tourists and investors, and the absence of national-level support for destination branding continue to constrain growth. Despite KP's strong safety record and improved infrastructure, outdated narratives in international and national media further dampen its appeal. There is also no institutional framework to channel remittances into tourism development. KP's diaspora contributes nearly one-third of the country's remittances, but the lack of a dedicated provincial investment authority means that capital remains untapped. To unlock KP's tourism economy, the province needs federal cooperation on visa liberalization, international promotion, and the establishment of a diaspora investment window. (To be continued) Copyright Business Recorder, 2025
Express Tribune
02-06-2025
- Business
- Express Tribune
Centre bypasses Punjab in DAO postings
The federal government has unilaterally appointed junior federal officers as Divisional Accounts Officers (DAOs) in all 43 districts of Punjab for the disbursement of public funds for the Public Works Department, bypassing constitutional and legal protocols and irking the Punjab Finance Department. These appointments have effectively stripped Punjab's District Accounts Officers (DAOs) of their constitutional authority over the disbursement of public funds, particularly for the Public Works Department. The move has sparked strong discontent within Punjab's Finance Department, which has raised the issue at a higher administrative level. In each district, two to three DAOs have been appointed, and they have already authorised payments exceeding Rs1 billion soon after assuming their roles. Members of the ruling PML-N have formally opposed this decision. MPA Ilyas Chinioti has submitted a motion of adjournment in the Punjab Assembly, arguing that the move violates the spirit of the 18th Constitutional Amendment, which grants provinces administrative autonomy. The motion demands that the federal government immediately withdraw its decision. The newly appointed federal officers are reportedly in grade 16 and 17, whereas Punjab's DAOs hold the more senior grade 18 posts. The reallocation of financial control to federal officers is seen as a direct infringement on provincial jurisdiction.
Business Recorder
24-05-2025
- Politics
- Business Recorder
JI demands powers, funds for elected representatives
KARACHI: Jamaat-e-Islami (JI) Karachi chapter staged a 'protest march' from Khizra Mosque to the Sindh Assembly on Friday, demanding financial and administrative rights for elected local government (LG) representatives. Hundreds of LG representatives including chairmen, vice-chairmen, and councillors participated in the protest. Addressing on the occasion, JI Karachi Chief Monem Zafar accused the provincial government of systematically neglecting Karachi. He called for immediate release of Rs500 billion to address the megacity's urgent civic issues. He also demanded Rs2 billion per town and Rs2.5 million monthly for each union council. He criticised the government for withholding LG funds, despite the 18th Constitutional Amendment, and for favouring nepotism over fair distribution. He highlighted Karachi's critical role in the national economy, contributing 60 percent of the federal tax revenue and 96 percent of Sindh's budget. Referring to widespread protests across the megacity, particularly in Malir against K-Electric — the JI leader vowed to escalate its 'Karachi Rights Movement' after the Eid. However, Saifuddin Advocate, leader of the opposition in the city council, alleged that the PPP was a parasite, devouring Sindh's resources. He warned of a province-wide campaign if the government failed to restore LG powers and release funds. MPA Muhammad Farooq; however, emphasised that the constitution guarantees financial and administrative authority to LG representatives. He accused the Sindh government of violating these provisions. He noted that JI was the sole party opposing recent legislation about appointing bureaucrats as chairmen of educational boards. Pakistan Challenging election of Bilawal as MNA: LHC allows petitioner Ashaba to submit documents to remove objections RECORDER REPORT LAHORE: The Lahore High Court (LHC) on Friday allowed a petitioner Ashaba Kamran to submit documents to the registrar office to remove the objections raised on her petition challenging election of Bilawal Bhutto Zardari as Member National Assembly (MNA). Earlier, the petitioner's counsel contended that Bilawal at the same time was member of PPP and PPP parliamentary party. He contended that under the law a person could not become member of two different parties at simultaneously. He said the registrar office objected that some necessary documents were not attached with the petition. He, therefore, asked the court to allow him to submit the documents as demanded by the registrar office. Copyright Business Recorder, 2025
