“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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