18th Amendment: Its Implications for Federalism

and Impact on Provinces

 June 23, 2016 Shahid Umar  2 Comments
By: Shahid Umar
Introduction
                The 18  constitutional amendment was passed on 20  April, 2010. Every member of the parliament unanimously
th th

agreed to the new constitutional changes. The 18  constitutional amendment has reformulated the structural outlines of the
th

state through a paradigm shift from a highly centralized to a substantially decentralized federation.
Federalism refers to the mechanism through which power is divided among the constituent units and the federal
government, in order to reduce the likelihood of an authoritarian or over centralized government (Hafeez, 2011) . In
federalism power and resources are shared among constituent units, where every constituent unit has the autonomy to
spend and collect revenue on its own behalf. Autonomy of each province is defined in constitution and the interference of
federal government is limited up to an extent where constituent units can make certain decision on its own behalf related
to spending and collection of resources. In this new constitutional framework Pakistan has introduced multilevel
governance system by extending the autonomy of provinces through the process of decentralization at the lower layers of
the local governance.

In this new amendment the power of the president of Pakistan was dissolved in order to eliminate the chances of military
coup in future. Pakistan became a parliamentary republic from a presidential system, because presidential system caused
political instability many times, in the case of military regimes, where civil powers were demolished. It was a first time in
the history of Pakistan that a president himself transferred powers to the parliament and to the Prime Minister (Hafeez,
2011). The 2008-2013 term is often stated to be the first compete democratic change of power without a military president
or a coup (Hafeez, 2011).

 Implications of 18  amendment for federalism

th

Devolution of Power under 18th Amendment

                Pakistan’s parliament has passed the 18th Amendment’s that, among other changes, gives the provincial
governments greater autonomy under the constitution by abolishing the concurrent list and other related provisions. The
full impact of the amendment’s many changes has yet to be fully analyzed and discussed by key stakeholders (Nabi,
2013). The 18th amendment eliminates the “Concurrent List,” i.e. ascertain of areas where both federal and provincial
governments may legislate but federal law prevails. Laws governing marriage, contracts, firearms possession, labor,
educational curriculums, environmental pollution, bankruptcy, and in 40 other diverse areas the provinces would have
exclusive jurisdiction and each provincial assembly will be responsible for drafting its own laws on the issues. The 18th
constitutional Amendment potentially impacts the mandate of several Federal Ministries and by implication increases the
roles and responsibilities of the related institutions and administrative structures at the provincial level (Nabi, 2013).
The 18  constitutional amendment was a positive step towards the decentralization process in a country like Pakistan. It
th

brought some positive implications for federalism in Pakistan. In this new amendment powers were dissolved to
constituents units, which is the beauty of federalism. The bill enhanced provincial autonomy, where the president will no
longer be able to unilaterally declare emergency rule in any province (Najam, 2010). The new amendment brought some
remarkable changes which made the roots of federalism stronger than ever in Pakistan. The size of the cabinet was
restricted to 11 percent of the members of parliament and respective provinces in order to ensure good governance. In
federalism proper care for minorities are ensured, thus in order to protect the rights of minorities, four seats, one from each
province are allocated for the minorities in senate. This initiative increases the strength of minorities in senate and say in
general. Council of Common Interest’s formation was revised and Prime Minister was appointed as chairman. The council
will be obligated to meet once in 90 days. The Council of Common Interest has been given additional powers and the
provinces have been given more say on national matters by enhancing their representation in the council.  The reformation
in the Council of Common Interest was a step forward in the decentralization process, because provinces will bring their
common issues on one table which will be address on time, and provinces would be able to pressurize federal government
for their common needs and requirements (Najam, 2010).
In the new constitution provinces are required by law to establish local government systems, devolve political,
administrative and financial responsibility and authority to elected representatives. The two major pillars of federalism
which are the devolution of political and economic powers/rights to the constituent units. Provinces are provided with
more political and economic autonomy in 18  amendment. Federal government would have less interference in the process
th

of revenue spending, although federating unites still have no full autonomy of revenue/tax collection. Local government
system is the beauty of federalism, where elected representatives hold offices. They are more aware of local issues, thus
they can more easily address those issues as well. Amendment to article 157 says federal government must consult
provincial government before installing hydroelectric power stations in any province (Najam, 2010). It means provinces
are more autonomous in matters of developmental projects, and they will be consulted before the implementation of any
project, even if it is related to national interest.
18  Amendment potential impact on Khyber Pakhtunkhwa’s political and economic progression
th

Devolution of Power under 18th Amendment

   The name of North-West Frontier Province (NWFP) was replaced by Khyber Pakhtunkhwa in the 18  constitutional
th

amendment. Apart from this Council of Common Interest was made stronger in order to ensure regional autonomy and to
reduce the autonomy of federal government on different issues. Each province was made more autonomous regarding their
resources and certain tax collection/ spending, and other different developmental programs. Every province would have
now balanced development and regional equity. Each province will be provided with balanced allocation of developmental
spending, where no overlapping of spending will be ensured. Through NFC Award which is a constitutional body set up
for the distribution of financial resources among the provinces by federal government on annual basis, called National
Finance Commission Award. Certain types of taxes collected in each province are pooled, and then redistributed according
to the NFC formula (SADAQAT, 2006). Regional equity was ensured under NFC award, where a less systematic
approach has been adopted to decentralize the financial matters in Pakistan since the 6  NFC award. Population was the
th

sole distribution criteria, adopted in all NFC awards from the divisible pool. This has raised friction among other
provinces, demanding inclusion of other potential variables evolved from international best practices. Like other
provinces, KP demanded distribution of resources and grants-in-Aid on the basis of their poverty level and backwardness
(Hashmani, 2010). The demands were accepted under the 7  NFC award where amendment took place. Other amendments
th

regarding empowerment of KPK contain, to have full control of social and production sector, which is related to economic
independence of each province. KPK will ensure larger role in electricity, water sector and natural resources. Now the
government of KPK will determine the distribution and transmission of electricity within the province and also to levy to
levy tax on the consumption of electricity within the province. In case of any dispute between Federal Government and a
Provincial Government in respect to any matter may move to the Council of Common Interest for resolution of the
dispute. Federal Government will spend more money on provincial public sector development programs than Federal
Government. KPK like other provinces are free to contract domestic and external debts for their development (Hashmani,
2010).
Different clauses were mentioned in the 18  constitutional amendment to ensure provincial political autonomy and long
th

term progression. Clause which states that’ Provinces required by law to establish local government systems, devolve
political, administrative and financial responsibility and authority to elected representatives. The devolution of political
power to provinces was ensured under this clause. The provinces were provided autonomy to establish a fully functioned
elected local government system. It is a positive aspect of a Federalist state to reach to the masses and answer their
demands. It plays a very crucial role in KPK’s political progression, because citizens of KPK will elect their people who
will represent them in local governments. The person whom they elect will be from their community, thus he will be
answerable to his community. They will also have a say in political issues as well as in the allocation of funds for the key
problems of the area. Local government also helps bringing political awareness among people, where they are able to elect
people who they know they will work for their betterment and sound future. People can easily meet and discuss their
issues with the elected representatives as they are from their community. Further Governor should be a resident and
registered voter of his/her province, he/she would be appointed by president on prime minister’s advice, which also
ensures provincial autonomy.
18  amendment has a positive potential impact on Khyber PakhutunKhwa’s political and economic progression. It plays a
th

very crucial role in strengthening political process and economic progress by giving more autonomy to the Province.