Center province

relations
Pakistan affairs with Sir Usman PAS
 The instruments
Parliament of Pakistan National Assembly and
(A/50) Senate for Legislation

Important
Council of Common Policies on Federal
institutions for Interest (A/153) Legislative List part II
Center- Formulate national
National Economic Council
Province (A/156)
economic policies for
equal development
relations
National Finance Distribution of Financial
Commission (A/160) Resources
 Post 18th
amendment NFC 7th NFC award
Important award
instrument for
Financial
Constitutionally,
Transactions
award should be
given after every 5
years
  Center demand for more share in the fiscal pool for needs such as:
 Security needs
 Emergency needs (Floods, Covid, Locusts etc)
 Debt repayment
Hurdles in the  Demanding 55% share to provinces

way of new  Provinces:

 Baluchistan more funds
NFC award  KPKFATA merger and requirements of greater fiscal needs
 Punjab not ready to reduce its share
 Sindh focus on increasing the fiscal pie
 15% tax/GDP ratio was envisaged.
 oil and gas and mineral resources
• it seeks to amend the Oil and Gas Regulatory
Authority (Ogra) law of 2002 to have, among other
things, provincial members in the body to protect
provincial interests over hydrocarbon resources
The duel
between
provinces and
center federal government should hand over the
collection of royalties on crude oil to the
federating units as Article 161 (1) of the
constitution recognizes provincial
ownership rights over mineral oil and
natural resources.
issue of a windfall levy on crude oil,
condensate and natural gas under
Petroleum Policy 2012 and amendments to
the Regulation of Mines and Oilfields and
Mineral Development (Government
Control) Act of 1948
• to have greater control and clarity as part of its
push in line with the 18th constitutional
amendment.
Sindh has been insisting that net proceeds
of the royalty and federal excise duty on
mineral oil and natural gas were not part of
the Federal Consolidated Fund and have to
be paid to the province in which the
wellhead is located.
  the discussion on the centre-province disagreement on the interpretation of Article
158 of the constitution, which reads: “The province in which a wellhead of natural
gas is situated shall have precedence over other parts of Pakistan in meeting the
requirements from that wellhead, subject to the commitments and obligations as on
the commencing day.”
 Sindh interprets this as a source of monopoly over almost 68pc of domestic gas
that it produces, irrespective of residential, industrial or any other category of
consumers.
 The Ministry of Energy has a different view which, it claims, is supported by the
Case study attorney general: “Citizens of Pakistan (residential consumers) — and not of any
particular province — have the first right of use over natural gas (for cooking and
space heating as no other use of gas in 1973) as they are its ultimate owners” and
that citizens of each province cannot be dealt with differently
 In fact, it interprets the said Article in three parts. First, royalties on wellhead
belong to the province where it is located. Second, policymaking about these
wellheads belongs jointly to the federation and the provinces through the CCI. And
third, operations and management of supplies rest with the centre that it
implements through federally owned gas companies i.e. Sui Southern and Sui
Northern. The matter was also discussed in the previous CCI meeting and remains
unsettled.
  Since its creation in 1973 the CCI had been a less utilised constitutional
body. Before the Constitution and institutions flowing out, it could have
solved federal-provincial issues, it was put in abeyance in 1977 by
imposing martial law, and in 1985 through the 8th Amendment its federal
spirit was changed. In 1999, it was again put in abeyance, and in 2003 vide
the 17th Amendment it was given a quasi-presidential form. Thus in
Solution: absence of constitutionality, the CCI remained a dormant body.
 During 37 years of its existence since its inception in 1973 to 2010, it could
Council of meet only for 11 times. In absence of any proper secretariat of the CCI it is
difficult to find any well documented institutional memory. After the 18th
Common Constitutional Amendment in April 2010, the CCI has held 13 meetings till
December 2013 and taken up dozens of issues of federal-provincial
Interest importance.
 According to the Constitution, the council shall be constituted within 30
days of the prime minister taking oath of office. The council will meet at
least once in 90 days and have a permanent secretary.
 The council comprises the prime minister, four chief ministers and three
members from the federal government to be nominated by the premier.
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