“INSIGHTS INTO TRANSITION MANAGEMENT

OF THE 18TH AMENDMENT–CHALLENGES

AND OPPORTUNITIES”

MUHAMMAD ALI KAKAR

SECRETARY IPC GOVERNMENT OF BALOCHSIATN

PRESENTED IN:

CONFERENCE ON “PARTICIPATORY FEDERALISM AND

DECENTRALIZATION”: 26-27TH SEPTEMBER: 2013, ISLAMABAD.

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Outline of presentation

18th Constitutional Amendment- Significance & Relevant Features

Post 18th Amendment scenario

Province’s capacity to tackle additional responsibilities?

Institutional response to the Challenges

Conclusions/ the Way Forward

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FEDERALISM (INCLUSIVE/

PARTICIPATORY)

“Federalism is a form of Government

where the components/ federating units

participate in sharing of powers and

functions in a cooperative manner, though

the combined forces of ethnic pluralism

and cultural diversity tend to pull their

people apart” [Tekora Tanura, 1998]

18TH AMENDMENT-

SIGNIFICANCE

Redefining nature of relationship between

federation and federating units

Long term importance for socio-economic

scenario of provinces

Potential for resolving federalism issues- subject

to effective implementation

Joint Ownership of Federation and Provinces

for mineral oil & natural gas resources (Article

172 (3)

Payment of net proceeds of royalty on crude oil

and gas

Raising of loans (Article 167)

Local government powers (Article 140-A)

Sales Tax on Services (Entry 49 )

Arrears of GDS for Balochistan payable over

the next 5 years (impact of Article 161)

5THE 18TH AMENDMENT –Relevant Features

Post-18th

Amendment Scenario

Heavy reliance of Provinces on federal

resources

Amendment left service delivery aspect an

“Open Question”

Type/ magnitude of resources required for

implementation not determined

Low tax to GDP ratio- a chronic issue

NFC attempted towards fiscal equalization

but separate/ alternative measures needed

for fiscal efficiency

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Immediate causes of concern

High levels of poverty/ deprivation

Inadequate infrastructure

Lack of avenues for revenue generation

Absence of a “Provincial Revenue Authority”

Low generation/absorption capacity of

electricity

Low quantum of representation of Balochistan

in the Federal Entities

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Steps taken by the Federal Government

Through transition phase (next NFC), Federal Government would continue financing of the Vertical Health and P.W/programmes

The province asked to re-frame PCIs of Health Programmes

The province remained apprehensive of the decreased allocations

Financial crunch of Heath and Population Welfare Programmes

Tackling the Transition

Provincial government has requested the

Federal Government to be made part of

framework on exploration of oil and gas

Efforts to curb menace of electricity theft

Enhanced allocations under “Electricity Dues”

Paid the Agriculture subsidy share

Imposition of AIT is in the offing

Budgeted 02 year’s Solar Energy project in

PSDP 2013-14 -costing 2.00 Billion

Institutional Response-

Education Sector

• Education mainly a provincial subject, but with

substantial federal presence

• Devolved except standard of higher education,

research and international student’s exchange

• Initiation of reforms through BEAP, 2010

• An increased focus on improvement in coverage/

quality of education

• ‘Quality Indicators’ through annual assessment of

the students

Health sector reforms-2012

Health System Strengthening (HSS)

Autonomy for Health Care Institutions

To design a comprehensive and achievable Facility-based Service

Delivery Package

Primary/ Maternal & Child Health Services

Integrating the HMIS with HS

Contingency/ Emergency Medical Services

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WAY FORWARD

Comprehensive policy/ operational framework for

technical & specialized support to Provinces

The Federal government to develop a framework

for tax base harmonization

To develop and strengthen key institutions

supporting the Federation through fiscal

decentralization and coordination

Further strengthen role of the CCI to resolve

issues in the post-devolution scenario

The Way Forward

The provinces to promote investment and trade by

curtailing barriers to mobility of goods and factors

of production

The GOB to conduct a strategic review of its

finances and operations to meet challenges in

service delivery

Introduce civil service reforms

Reaffirm the role of local government as the

primary agent for service delivery

Strengthen Inter-Provincial Coordination

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