ICEP

DAWN EDITORIALS & OPINIONS

ANALYSIS
Dated: Monday, 27 July

Our Policy

We provide you with best quality analysis of Dawn newspaper on daily basis. The reason
behind this endeavor is clear as our policy is to educate you. Knowing the current issues of
Pakistan_ domestic and external is imperative for Civil service aspirants. Unlike India, in
Pakistan no such digital platform or academic work is available for aspirants' ease of
preparation. So, follow these instructions: Read these editorials and Opinions carefully and
keenly. These are important for widening your knowledge base, improving language skills,
understanding key issues, etc. This section(Editorial/ Opinions) is very useful for English
Essay, Current Affairs, Pakistan Affairs – and sometimes Islamiat – papers as they emphasize
more on analysis than facts. (Icep Analyst)

💬 To The Point
▪ Competitive Exams

▪ Essay Writing

▪ Current Affairs

▪ Pakistan Affairs

▪ Global Issues

▪ Geopolitics

▪ International Relations

▪ Foreign Policy

✍️Presented By:
M.Usman & Rabia K

1 ICEP Dawn Analysis

 CONTENTS TABLE
Page Title Section/Category
05 PTV's Role National Affairs
07 US-China Spat Global Affairs
09 Another package National Affairs
12 Biden VS Trump Foreign Policy (Maleeha lodhi) Global affairs
15 The perils of child labour Human Rights
18 Taxation issues after FATA merger National affairs
21 The reason why 18th amendment refuses to die National affairs

COLOURS Used:

Red for Difficult Vocab

Green for Important Figures and contents

Others colours used where necessary

2 ICEP Dawn Analysis

 DAWN+ EDITORIALS SECTION

3 ICEP Dawn Analysis

 Notes: Questions-answer Formation of the first Editorial

Q: What is the full form of PTV?

Ans: Pakistan Television Corporation.

Q: What Decision has the Govt taken?

Ans: THE government has taken a decision to increase the licence fee of PTV from Rs35 to
Rs100 per month.

Q: Why this decision has been taken?

Because, PTV has been groaning under financial pressure for years. PTV has been a tragedy
unfolding over the decades in slow motion. It is fast becoming like a dinosaur in this digital
era.

Q: Why Govts have failed to build PTV as a credible organization?

Ans: Governments have failed to build PTV as a credible organisation because the have
failed to understand the role of a taxpayer-funded TV channel. It can play an outstanding
role but Govt failed to grasp this vision.

Q: What is the way forward?

Ans: The way forward is to understand the true potential of PTV. This potential can only be
unleashed if it is transformed into a public broadcaster whose financially viability is
subsumed in its core role of serving the public with content that puts citizens ahead of the
advertiser.

Similarly, the only thing that can save it is if someone can truly reimagine its ethos, role and
potential for the years ahead.

4 ICEP Dawn Analysis

PTV’s role | Dawn Editorial
Introduction:

THE government has deferred (postponed) a decision to increase the licence fee of PTV
from Rs35 to Rs100 per month. While this is a sensible move for now, possibly under
pressure from the public outcry, the decision to do so could be taken in the near future.

PTV has been groaning under financial pressure for years and despite tall claims, no
government has really been able to turn the organisation around. It is a sad fact that time and
again the taxpayer has had to shoulder the burden of mismanagement and cronyism that
have been part of PTV under successive governments. Increasing the licence fee today
amounts to punishing the citizens for mistakes of the government.

Critical Analysis:

Charging citizens a licence fee can be justified if the former get value for their money from a
broadcaster. However for this to happen, a fundamental shift in the thinking of the Pakistani
state has to take place with regard to PTV. Governments call PTV a ‘state broadcaster’. This
is wrong. It is supposed to be a ‘public broadcaster’ because it is meant to serve the public
and not be a mouthpiece for the state or government of the day.

The failure to understand the role of a taxpayer-funded TV channel is the core reason why
governments have failed to build PTV as a credible organisation producing content that is
aimed at the public good. No government, unfortunately, has been able to break out of its
myopia and grasp the enormous potential that lies hidden inside PTV.

This potential can only be unleashed if it is transformed into a public broadcaster whose
financially viability is subsumed in its core role of serving the public with content that puts
citizens ahead of the advertiser.

Every prime minister has expressed his or her desire to turn PTV into a ‘BBC model’ but
none has had the breadth of vision to understand what this entails. As a consequence, PTV
continues to be treated as a platform for crude, low-quality propaganda peddled by insecure
governments and executed by bureaucrats and professionals who measure the value of
public broadcasting through its balance sheets alone.

Conclusion:

PTV has been a tragedy unfolding over the decades in slow motion. The PTI government at
the centre, for all its tall rhetoric, has stooped to the same low level of thinking about PTV
that was displayed by the PPP and PML-N governments. PTV today suffers not from a
bankruptcy of revenue but a bankruptcy of vision. In an age of media transformation, PTV is
fast becoming a dinosaur.

Way forward:

The only thing that can save it is if someone can truly reimagine its ethos, role and potential
for the years ahead. Throwing good money after bad — which is what the increase in licence
fee amounts to — makes no sense. But then not much does when it comes to PTV.

5 ICEP Dawn Analysis

 VOCAB Description:

Deferred: postponed

Outcry: protest

Groaning: be oppressed by: families groaning under mortgage increases.

Tall claims: high claims

Shoulder the responsibility: Idiom Explained below

shoulder the responsibility/duty/cost/burden etc: to accept a difficult or unpleasant
responsibility, duty etc. The residents are being asked to shoulder the costs of the repairs.

Cronyism: preference for relatives or close friends, preferential bias toward friends
(especially in politics).

Myopia: lack of imagination, foresight, or intellectual insight: historians have been

censured for their myopia in treating modern science as a western phenomenon.

Peddled: sold,to sell something: he peddled art and printing materials around the country.

Stooped: lower one's moral standards so far as to do something reprehensible:

She was unwilling to believe that anyone could stoop so low as to steal from a dead woman.

Ethos: the characteristic spirit of a culture, era, or community as manifested in its attitudes
and aspirations: a challenge to the ethos of the 1960s.

6 ICEP Dawn Analysis

US-China spat (spat means a petty quarrel or conflict)
Introduction:

THE war of words and actions between the US and China has been escalating over the past
few days, raising eyebrows across the globe, with mounting concerns over the possibility of
a more serious confrontation between the world’s top two economies. While even before
coming to power President Donald Trump — guided by his ‘America first’ mantra — had
been talking about getting ‘tough’ on China, now that re-election looms in November, he
may be looking to deliver on that promise.

Citing supporting Data:

▪ Earlier last week, the US ordered the closure of the Chinese consulate in Houston
over allegations of “economic espionage”; Beijing replied in kind by asking America
to shut its consulate in Chengdu while calling the allegations “malicious slander”.
▪ Moreover, on a recent trip to Europe, US Secretary of State Mike Pompeo railed
against the People’s Republic with the ideological zeal of a cold warrior, asking
“every nation ... to understand this threat being posed by the Chinese Communist
Party”.
▪ Before these developments, Mr Trump had called Covid-19 the “Chinese virus”
while accusing China of “extinguishing Hong Kong’s freedom” after Beijing applied a
new security law in the region.

Critical Analysis:

It needs to be asked why the US is ramping up its anti-China rhetoric in the final months of
Mr Trump’s term. It appears that the US leader is pillorying a foreign bogeyman to grab
more votes, considering his flagging ratings at home. But while playing the patriotism card
and lambasting China may grab him a few percentage points, the long-term impact of this
brinkmanship will be negative. When rhetoric is raised to a fever pitch, the probability of
unintended, and unwanted, consequences increases manifold.

Moreover, while there may be legitimate questions about China’s human rights record,
the US chooses to be selective in this regard — hectoring opponents, and looking the other
way when allied strongmen abuse rights.

Suggestion:

Insteadd of picking an ugly public fight with China at a time of global tension, the US
should use more discreet channels to communicate its genuine concerns to Beijing.

Rhetorical sentence:

It appears that the US leader is pillorying a foreign bogeyman to grab more votes,
considering his flagging ratings at home.

Meaning: it seems that the US Leader condemns publicly the foreign (China) as a the most
terrific country, to gain votes, knowing his own weak position at home (United States).

7 ICEP Dawn Analysis

 VOCAB Description:

escalating: increasing
mounting concerns: growing, gradually strengthening

malicious: malevolent, spiteful, harmful

slander: false and injurious statements made about another, defamation, calumny

railed against something: complain bitterly: she railed against husband

ramping up: stand threateningly, behave in a meanacing manner

pilloyring: condemn publicly

bogeyman: terrific person or thing, a person or thing that is widely regarded as an object of
fear: the violent criminal has replaced the communist as the bogeyman.

Flagging: weak

Lambasting: criticize (someone or something) harshly: they lambasted the report as a gross
distortion of the truth.

Brinkmanship: the policy of pushing a dangerous situation to the brink of disaster

To a fever pitch: a state of very strong emotion:

Excitement at the stadium had reached/was at fever pitch

Manifold: in many ways or various: the implications of this decision were manifold.

Hectoring opponents: bully, browbeat, bullyrag, push around

Discreet channels: careful and circumspect in one's speech or actions, especially in order to
avoid causing offence or to gain an advantage: we made some discreet inquiries.

8 ICEP Dawn Analysis

Another package | Dawn Editorial
Introduction:

EVERY ‘Balochistan development package’ proposed by successive federal governments

that has come to naught (to be unsuccessful, failed) has only increased the sense of
alienation among the Baloch. Such declarations appear to them to be no more than an
exercise periodically indulged in to give lip service( fake promises) to addressing the
province’s deprivation.

Citing Supporting Data:

▪ In 2009, for instance, the PPP government announced the Aghaz-i-Haqooq-i-

Balochistan package with great fanfare; that sank without a trace.

▪ In 2017, a few months before the general election, then prime minister Shahid
Khaqan Abbasi declared an economic package for the province which died a natural
death with the polls.

Details of the Balochistan Development Package:

On Friday, during a meeting of the National Development Council, Prime Minister Imran
Khan set up a three-member committee to prioritise areas where development should be
undertaken in Balochistan, with a focus on communications, agriculture, energy and other
important sectors. At the meeting, it was also decided to set up the Balochistan Mineral
Company to enhance exploration of mineral resources in the province. Can this
initiative succeed where so many others have failed? Has there been any introspection
within the state apparatus that has brought some understanding of our hitherto ruinous policy
towards Balochistan?

Critical Analysis:

After decades of broken promises, political engineering and enforced disappearances, the
trust deficit between the centre and the Baloch is vast. Yet it is not, one hopes,
unbridgeable. The majority of them yearn to live in peace and dignity, with the space to
exercise the autonomy that is their right under the 18th Amendment.

▪ One of their fundamental grievances is that Balochistan has been deprived of its
fair share in the mineral wealth that lies beneath its land, and that it is exploited
as a colony rather than treated as an equal member of the federation.

The province has indeed long been viewed through a narrow securitised lens, with its
people’s legitimate expectations being made to take a back seat to national geostrategic
concerns. Such an environment has provided fertile ground for regional powers to make
mischief and foment rebellion. While the ongoing insurgency has been simmering(boiling
at low temperature) since nearly a decade and a half, recent attacks carried out by banned
Baloch separatist outfits indicate they can still draw new recruits to their cause. These
groups are also manifesting a shift towards a more lethal modus operandi.

Way forward: To neutralise them ironically requires not a security-centric but a political
solution, one rooted in a rights-based approach that prioritises the aspirations of the Baloch.

9 ICEP Dawn Analysis

 Important Transitional Words/adverbs used in this document

Important transitional words/ adverbs used:

Basically
Worryingly
Similarly
Simultaneously
Unfortunately
Surprisingly
Unsurprisingly
Seemingly
Consequently
Resultantly
Unbelievably

Instead of,
In addition to,
Furthermore,
On the other hand,
Moreover,
In contrast,
However,
Likewise,

On a serious note,
On a light note,

10 ICEP Dawn Analysis

 DAWN+ OPINIONS SECTION

11 ICEP Dawn Analysis

Biden vs Trump foreign policy | Dawn Opinion
Maleeha Lodhi

The writer is a former ambassador to the US, UK and UN.

Thesis Statement:

THE outcome of the US presidential election in November will have a significant global
impact. Will it mean more of the same or usher in changes in American foreign policy?
Will it bring an end to the disruptive effect that the Trumpian approach has had at an
unsettled time in international affairs?

Most Unpredictable US Election

With elections just over three months away, Democratic

contender(competitor) Joe Biden has a two-digit lead over
President Donald Trump whose approval ratings have
plummeted due to his mishandling of the pandemic and a
weakening economy. This lead will likely narrow as the
campaign advances with the race expected to be close. An
unusual election in the midst of the continuing pandemic means
greater unpredictability especially in view of Trump’s efforts to
set the stage to challenge and delegitimise the outcome if he
loses.
Joe Biden (Joseph
Gauging the Foreign Policy approach: Robinette Biden Jr. ) is an
American politician who
It would be instructive to consider how different the foreign served as the 47th vice
president of the United
policy approaches of the two contenders will be, based on what States from 2009 to 2017.
they have said or done so far. He represented Delaware
in the U.S. Senate from
Foreign policy cannot of course be divorced from the 1973 to 2009. A member
of the Democratic Party,
domestic situation. If foreign policy is a reflection of the Biden is the presumptive
internal strength and cohesion of a country, the US is no Democratic presidential
exception to this. nominee for the 2020
election, running against
the incumbent, Donald
Trump Approach: Trump.

Trump’s divisive and combative leadership and his controversial policies on race and
policing have left his country in a state of disarray, division and dysfunction. This has
damaged America’s reputation and global standing and eroded its soft power — weaknesses
that will be reinforced if Trump is re-elected.

12 ICEP Dawn Analysis

Biden approach:

A Biden presidency will seek to heal these internal divisions and try to reverse its deleterious
fallout on America’s global image. That would represent the first fundamental difference
between them.

Biden foreign policy is conventional and predictable VS Trump is whimsical and

unpredictable:

Their general approach to foreign policy will also be appreciably different. Biden’s will be
more conventional and predictable in sharp contrast to Trump’s whimsical and disruptive
handling of global affairs, which will remain his style of conducting foreign relations if re-
elected. Indeed, Trump’s blustering(threatening) posture always exceeded the power his
country could mobilise to secure compliance from other nations. It didn’t take long for
targeted countries to figure this out and push back effectively against such perceived
bullying. Cases in point are North Korea and China.

Trump Stance VS. Biden Stance

On Foreign Policy General Approach:

Trump can be expected to continue his
‘America First’ unilateral policy, rejecting
multilateralism, abandoning more international
organisations or agreements, showing disdain for
traditional alliances including Nato and
disregarding allies on key fronts.
Biden, on the other hand, has long dealt
with foreign policy and defines himself as
a “liberal internationalist”. He will seek
to revive America’s multilateral
credentials, rejoin global bodies, restore
partnerships in Europe and Asia, repair
ties with allies and strengthen Nato, as a
longtime supporter of the alliance. In a
recent interview, Biden’s top foreign
policy adviser, Tony Blinken, reiterated
this faith in the principles of liberal
internationalism.

On Iran Nuclear Deal:

On the Iran nuclear deal, a Biden

administration is expected to rejoin it and
seek to “improve” it. Biden regarded
Trump’s 2018 abandonment of the
agreement as disastrous, which left the
US “much worse off”. He has repeatedly
declared he would re-enter JCPOA if Iran
abided by it and then work to strengthen
it with partners. He has also said that
“Doing so would provide a critical down
payment to re-establish US credibility,
signalling to the world that America’s
word and international commitments
once again mean something”.

13 ICEP Dawn Analysis


Stance on China:
On the world’s most critical bilateral relationship
— between the US and China — a re-elected
Trump would likely continue on a course of
confrontation making future ties turbulent and
marked by more provocative actions. He will try
to refashion the trade equation between the two
global powers but in the face of a more confident
and assertive China. The anti-China mood in the
US will be reinforced during the campaign as
both candidates portray themselves as tough on
China. The two camps are already accusing each
other of being soft on Beijing.
On South Asia and Kashmir :
South Asia is not expected to be a high priority
for either of the two contenders but both are
likely to strengthen ties with India to balance
China.
14
Biden Stance
As the popular and political consensus in
America now sees China as a
manipulative adversary, this will also
shape Biden’s policy approach. Most of
his foreign policy advisers are hawks on
China. Nevertheless, while adopting a
tough stance towards Beijing and
engaging in strategic competition as well
as containment, Biden may be less
combative than Trump and seek areas of
cooperation such as climate change and
North Korea. He may also try to revive
the Trans-Pacific Partnership.
A Biden administration would however
recognise problems in the relationship
because of India’s increasing
authoritarianism and not shy away from
speaking on human rights. This is already
reflected in his campaign platform which
stated last month that Biden understands
the pain Muslim-Americans feel on issues
including Kashmir. It also called on India
to “take all necessary steps to restore
rights for all the people of Kashmir”.
Biden, who has visited Pakistan several
times, is expected to be favourably
disposed to engagement with Islamabad
and in a more predictable way than
Trump. Much will also depend on how
proactive and imaginative Islamabad is in
engaging his administration. A detailed
assessment will follow in a later column.
ICEP Dawn Analysis
The perils of child labour | Pakistan Today Opinion
By: Iqra Javed

Thesis Statement:

A child labourer is one who works at early age to meet his or her necessities. Child
labour has escalated worldwide. The reason is not only poverty but also negligence,
unemployment, lack of education, overpopulation, environmental destruction like
floods or earthquakes, migration, among others.

Introduction:

A study by UNICEF estimated 158 million children in the world are part of the labour
market, which includes wage labour, domestic, non-domestic and non-monetary work.
Child labour includes girls and boys who have been working since their childhood either
being distant from their homes or living in the streets because of homelessness. As a result
of this children who are facing violence in heir homes are likely to leave them. These are
hired by different mafias and militant wings for forced labour work.

Pakistan Place in Global Children Rights Index:

Pakistan is ranked 154th out of 181 countries in the Global Children Rights Index. Another
private survey reported that there are 1.5 million treet children in Pakistan. The report by
UNICEF (2017) stated that 16 percent of children aged from 5 to 17, engage in labour work
and are more vulnerable to abuse.

Child labourers: Standard of leaving:

The children from worst financial strata(classes) or populated household are forced to earn
their livelihood or they often belong to the families that live and sleep on the streets around
the town or at the garbage dump. To fulfill the basic needs of food and other necessities,
they work for minimal wages in an unfriendly and tough environment. More worrisome is
they have to sometimes eat unhygienic and inedible food from garbage dumps to satisfy
hunger which makes them more vulnerable to, and exposed to, harmful diseases.

The toughest jobs with lowest wages:

Moreover, orphan children are coerced into work out of home for monetary purpose because
they alone have to work to survive. They prefer;

▪ shoe-shining,
▪ car-cleaning
▪ or hawking (selling) on the roads and streets,
▪ auto-repair shop work,
▪ stations,
▪ markets,
▪ garbage dumping points,
▪ brick kilns, farm fields, small industries, domestic services and carpet weaving, or
garbage-carrying,

15 ICEP Dawn Analysis

where they can be e hired easily in cheapest wages. Mostly children works in manufacturing
and different industries like tobacco. The industries avail their services at a low cost and
work them hard.

The youth has vast social activism through digital platforms. Through citizen’s
journalism, social media platforms can monitor the issues of vulnerable or
victim children at all levels of society to let them know what is child labour and
how to mitigate it

The misuse of poor childrens:

More worryingly, underprivileged families sell their child to fulfill their financial
necessities. As a result, these kids are misused by mafias or gangs for begging and other
harmful acts like prostitution or slavery or sometimes non-state actors use them for
accomplishing their nefarious (evil) designs of terrorism. Boys who work and live on streets
become a hit with militant organizations by shaping their personality as deadliest suicide
attackers. They are also involved in the exchange of drugs, abduction and other crimes.

The Plight of underage girls:

Further, the entire situation seems more complex for girls. They are appointed as fulltime
maids in houses where the employer regards them as property and violates basic children’s
rights, harasses them physically and mentally which often results in death.

▪ In 2019, Uzma, a 16-year-old maid, working for 8 months, had been killed brutally
by her female employers owing to her eating a meal.
▪ Another maid, a 10-year-old girl Tayyaba, working as domestic helper, was found
injured from the house of session judge Raja Khurram Ali. This is awful behaviour by
our educated people.

The children are the builders of the future; if they survive, the nation will move forward. At
present, we must proceed with serious initiatives to eradicate the curse of child labour. There
are a few practices which can be useful to adopt.

Invest in the needs of these kids to boost the future of Pakistan:

Unfortunately, Pakistan is an underdeveloped country with overpopulation. Our

citizens do not esteem child in their care. This aspect is totally ignored in the children having
no or worst background. The time has come to look back towards kids who are neglected in
society. If you are financially stable, invest in the needs of these kids to boost the future of
Pakistan.

Methods to Prevent Child Labour:

Applying each one teach one theory:

Pakistan has a young population in which about 445,000 students graduate yearly. These
graduate can put their efforts voluntarily by implementing the “each one, teach one” theory
of Nobel Peace Laureate Malala Yousufzai. For this purpose, promoting reading and
writing campaigns must be started individually.

16 ICEP Dawn Analysis

The Role of Political Parties:

Political parties prefer the active participation of youth wings. These wings can
influence to promulgate special legislation for child labour rights and their special
education (Which could give an opportunity to get free and quality education). Our
educated youth can start counselling programmes for supporting the self-development
theme among them by which they would be able to share their concerns. They can provide
also parents counselling to eliminate them.

The Role of Civil Society:

Civil society can conduct workshops and awareness campaigns, which can play a vital
role to let them be cognizant about their rights. By knowing workplace harassment,
physical and mental abuses, they will be able to identify the gangs or mafias that hire them
for extreme-level crime, such as prostitution, because they are accessible targets.

The Right of education must be utilized:

Every child has the right to access resources of education. Therefore, those children who are
helping out families or themselves to earn a livelihood must be encouraged to attend school.
Flexible hours and days may help to enroll a large number of kids into schools. Special
technical education assistance with proper toolkits should be provided. These trainees must
be further funded for their personal startups.

The Role of Media:

Media is now the fourth pillar of the state. To rehabilitate them, the media can enforce
government and child protection organizations for implementation on legislations. Everyone
should comply with the law and not incite anyone to break it. Influential people can be
approached for using their power to force industrialists to arrange special shelter,
educational and health facilities mandatory for children.

The use of Digital platform for awareness:

The youth has vast social activism through digital platforms. Through citizen’s journalism,
social media platforms can monitor the issues of vulnerable or victim children at all levels of
society to let them know what is child labour and how to mitigate it.

17 ICEP Dawn Analysis

Taxation issues after FATA/PATA merger | Daily Times Opinion
By: Dr Ikram Ulhaq

Thesis Statement:

The merger of Federally Administered Tribal Areas (FATA) with Khyber

Pakhtunkhwa and Provincially Administered Tribal Areas (PATA) with respective
provinces, after assent of President to The Constitution (Twenty-fifth Amendment)
Act, 2018 on May 28, 2018, (‘the 25th Constitutional Amendment’) was undoubtedly
an historic day. This long-overdue and much-delayed action promised to offer a
number of opportunities to the residents of these areas for equality, constitutional
protections, development and inclusive growth-all these remain a dream unfulfilled
after passage of two years of the merger.

Introduction: The Unfulfilled Claims

At that point of time, tall claims were made tackling the extraordinary challenges faced by
these areas in the wake of the long reign of terrorism,

▪ especially removing the sense of deprivation of local residents,

▪ integration with the rest of the country and many more,
▪ giving equal opportunities and revolutionizing its infrastructure.

These issues have many facets__political, legal, administrative and above all, economic.
In this article, taxation issue alone is highlighted as exemptions provided in these areas after
the merger, are not serving the purpose for which these were granted; that were to become
catalysts/incentives for investment, development and creation of jobs.

The merger of FATA and PATA should have been accompanied with a
comprehensive, multi-faceted programme of development, especially infrastructure,
which is missing till today. These areas are rich in natural resources and if projects are
launched prudently, the people of these areas can become prosperous. It is, in fact, the
collective responsibility of all citizens to pressurise all concerned quarters-political
and non-political-to give them means to progress.

The Constitutional Explanation:

The 25th Constitution Amendment removed the words “the Federally Administered Tribal
Areas” from the definition of ‘Republic and its territories’ contained in Article 1 of the
Constitution of Islamic Republic [“the Constitution”]. These are defined in Article 246 of
the Constitution. Before the 25th Constitutional Amendment, these areas were outside
the operation of tax laws, enacted by the parliaments, both federal and provincial. The
President of Pakistan had the power to extend jurisdiction of any tax law to FATA while
Governors of provinces could extend the laws to PATA. Nevertheless, tax laws were never
extended to either FATA or PATA, except the Customs Act of 1969 to recover taxes on
import and export of goods from customs-notified places in these areas, from where trade
(transit and regular) between Pakistan and Afghanistan and imports and exports to many
Central Asian countries take place.

18 ICEP Dawn Analysis

The Case-Study of Tax Exemption:

After the 25th Constitutional Amendment, these areas became “taxable”, but certain
exemptions were extended through Statutory Regulatory Orders (SROs). When the initial
SRO 887(I)/2018 was promulgated on July 23, 2018, it was mentioned in The Merger and
tax issues’, Business Recorder, June 1, 2018 and ‘Erroneous tax exemptions’ The News,
August 26, 2018, the following textual and conceptually defects in it:

1. In proviso to clause (146), Part 1 of Second Schedule to the Income Tax Ordinance,
2001 exemption was restricted to AOPs and companies on the condition that
“registered offices are in the areas covered in Article 246 of the Constitution”. It was a
faulty concept as these areas had/have no offices of Registrar of Firms prior or after the 25th
Constitutional Amendment and the same was/is the case with Security & Exchange
Commission of Pakistan (SECP) that deals with registration of companies. Any company
registered by SECP anywhere in Pakistan is “resident” under the Income Tax Ordinance,
2001 and can work anywhere as its registration is not based on working for a particular area
of ‘Pakistan’-the expression defined in Article 1(2) of the Constitution. Many companies,
like banks, have various branches located in the areas mentioned in exemption clauses.
These companies are registered for all areas of Pakistan including those mentioned in Article
246 of the Constitution.

2. The exemption of income was restricted to an individual who is ‘resident’

payer/recipient of the areas. It was absurd as no border controls exist between areas
mentioned in Article 246 and rest of the country and therefore criterion of counting days in a
tax year to qualify as ‘resident’ under the Income Tax Ordinance, 2001 could not be
possible.

Later on, the SRO 887(I)/2018 was replaced with SRO 1212(I)/2018 and SRO 1213(I)/2018
, issued on October 5, 2018, to restore exemptions from the levy of sales tax and income tax
in these areas as existed prior to the 25th Constitutional Amendment providing exemption:

Exemption Cluses' Interpretation:

* of whole of sales tax, by whatever name called, as levied under the Sales Tax Act 1990, or
notifications issued thereunder, on supplies made until 30 June 2023, to which the
provisions of the Sales Tax Act 1990 or related notifications would not have applied had
article 247 of the Constitution not been omitted;

* from any income, which was not chargeable to tax prior to the commencement of the (25th
Amendment) Act 2018 of any individual domiciled or company and association of persons
resident in these areas with effect from 1 June 2018 to 30 June 2023 (both days inclusive);
and

* from deduction or collection of withholding tax from any individual domiciled or

company and association of persons resident in these areas with effect from 1 June 2018 to
30 June 2023 (both days inclusive).

In the new exemption clauses, the words used are “of any individual domiciled or company
and association of persons resident in the Tribal Areas forming part of the Provinces of
Khyber Pakhtunkhwa and Balochistan under paragraph (d) of Article 246 of the Constitution
with effect from the 1st day of June, 2018 to the 30th day of June, 2023 (both days
inclusive)”.

19 ICEP Dawn Analysis

The Faulty Clauses:

It is strange, rather shocking, that ingenious draftsmen sitting in the Federal Board of
Revenue (FBR) and Ministry of Law once again inserted faulty exemption clauses. All
companies and AOPs are residents of Pakistan. If intention is to give exemption to only
those entities that have registered offices and “control and management” in these areas then
unambiguous words should have been employed to this effect which are missing. The
concept of ‘domicile’ for an individual is still debatable as to whether his/her income
received from taxable areas will be also exempt or not. Unscrupulous people may exploit
this condition, either getting fake domicile or using name of a local domiciled person for
doing business from taxable areas but claiming exemption available in these areas, e.g
exporting goods from Karachi and getting exports proceeds in non-taxable areas.

Conclusion: Solutions

The solution is simple: since these backward areas are in dire need of investment for
infrastructure, industrial and business development, especially after economic toll of Covid-
19 endemic and creating jobs, notably for the youth, investors, no matter to which area they
belong or are resident of, should be given tax concessions unconditionally to the extent of
incomes accruing and arising in these areas. This will help attract investment, remove the
loopholes created by exemption clauses and end discretionary powers and bargaining tools
available to tax officials. The provincial governments should also waive all taxes within the
areas mentioned in Article 246 of the Constitution to attract domestic and foreign investment
leading to development and job opportunities.

About the writer:

The writer, Advocate Supreme Court, is Adjunct Faculty at Lahore University of

management Sciences (LUMS)

20 ICEP Dawn Analysis

The reason why debate on 18th Amendment refuses to
die | Arab News
Ahmed Bilal Mehboob

Topic : Lack of open debate on 18th Amendment poses threat

to provincial autonomy
Introduction
The 18th Amendment became part of Pakistan’s constitution about ten years ago when
President Asif Ali Zardari signed it on 19th April 2010. The debate on its merits and demerits,
however, continues to rage on even today. Why?

The 18th Amendment was the biggest constitutional exercise in the history of Pakistan since the
framing of the supreme law of the land in 1973. It impacted almost 100 articles, which constitute
about one-third of the document.

Provincial autonomy had been a hugely contentious(controversial) issue in Pakistan’s

constitutional history. The balance of center-province powers was among the two most divisive
issues that dragged the constitution-making process for about nine years, the other one being
the place of Islam in the polity. The question of provincial rights, however, was more
responsible for the scission(split between parties) of the country’s eastern wing in 1971 than
anything else.

Concurrent Legislative List demolishment into 18th Amendment

The 1973 constitution brought some temporary closure to this sensitive issue. Political parties
holding diverse views on the subject apparently agreed to the quantum of provincial autonomy
prescribed in the document since no one wanted to create another crisis in the form of a
constitutional deadlock soon after the tragic events of 1971. There was also a belief in many
circles that the accord on the constitution was made possible because of an informal agreement
among the country’s political leadership to abolish the Concurrent Legislative List in the
constitution after ten years. There is, however, no credible evidence for such an informal accord.

The lack of sufficient debate does not make the 18th Amendment any less legitimate in a strictly
legal sense. The lesson learned from its passage is that any further amendment in the
constitution, including modifying any aspect of the 18th Amendment, must be undertaken only
after achieving a consensus through an open debate both in and outside parliament.

Although the 18th Amendment dealt with nine broad areas of Pakistan's constitutional
arrangement, provincial autonomy was the centerpiece of the legislation. It successfully
abolished the Concurrent Legislative List, transferred most of the subjects therein to the
provincial domain and significantly expanded the sphere of provincial autonomy. While
financial allocations from the federal divisible pool are considered a subject to be settled in the
National Finance Commission (NFC) award every five years, the 18th Amendment inserted a
new clause 3A in Article 160 which allows only upward revision in the provincial share in
succeeding awards. This clause has apparently become a thorny issue between the federal and
provincial administrations. Even a cursory study of the terms of reference for the 10th NFC
recently announced by the president indicates that the federal government is keen to find a
way around the roadblock of Article 160 (3A).

Durable consensus on 18th Amendment : A long-haul issue

21 ICEP Dawn Analysis

Despite the fact that the 18th Amendment dealt with such explosive issues such as the provincial
autonomy, a lack of open debate both inside and outside parliament is astonishing. It is true that the
Parliamentary Committee on Constitutional Reforms (PCCR) headed by Senator Raza
Rabbani did a wonderful job by holding 77 meetings over 10 months, spending 385 hours in
deliberation, and reviewing 982 public proposals invited by the committee through newspaper
advertisements, but all these in-camera proceedings were not a substitute for the open debate
which is the essence of a democratic process leading to a durable consensus. The PCCR had
decided early on that committee proceedings would remain strictly confidential. The
confidentiality was so effectively enforced that some legislators and party office holders
outside the PCCR complained about the lack of awareness of the committee deliberations
when the bill was moved in parliament. The debate in the National Assembly and the Senate
lasted for just two and four days, respectively. It is not that the 18th Amendment bill was such a
complete consensus that it did not require extensive debate: There were some eighteen notes of
reiteration or dissent written by 15 out of 26 members of the committee appended (added)
with the PCCR Report.

In contrast to the lack of open debate on the 18th Amendment,

▪ the country’s national parliament had debated the 1973 Constitution Bill for more than two
months after the committee constituted for the purpose completed its eight-month-long
deliberations.
▪ The parliamentary debate on the 2nd Constitutional Amendment (declaring Ahmadis non-
Muslims) continued for over three months.
▪ The 8th Amendment (indemnifying actions of General Ziaul Haq’s martial law) was debated
for 41 days.

Critical Analysis
It is because of the open and detailed debate on these legislations that there was hardly any
significant controversy after their passage. The debate on the 18th Amendment, to the contrary,
continues even ten years after its passage and seems to be gaining momentum with time
primarily because it was not openly and sufficiently debated before its passage.

The lack of sufficient debate, however, does not make the 18th Amendment any less legitimate in a
strictly legal sense. The lesson learned from its passage is that any further amendment in the
constitution, including modifying any aspect of the 18th Amendment, must be undertaken
only after achieving a consensus through an open debate both in and outside parliament.

- Ahmed Bilal Mehboob is the president of Pakistan-based think tank, PILDAT.

22 ICEP Dawn Analysis