insights into transition management of the 18th amendment

“INSIGHTS INTO TRANSITION MANAGEMENT
1
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.
Outline of presentation

18th Constitutional Amendment-

Post 18th Amendment scenario

Province’s capacity to tackle additional responsibilities?

Institutional response to the Challenges

Conclusions/ the Way Forward

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Significance & Relevant Features
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 AMENDMENTSIGNIFICANCE
 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
THE 18TH AMENDMENT –Relevant Features
5

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)
Post-18th Amendment Scenario
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 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
Immediate causes of concern
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
High levels of poverty/ deprivation

Inadequate infrastructure

Lack of avenues for revenue generation

Absence of a “Provincial Revenue Authority”

Low
generation/absorption
electricity

Low quantum of representation of Balochistan
in the Federal Entities
capacity
of
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 ResponseEducation 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
Delivery Package

Primary/ Maternal & Child Health Services

Integrating the HMIS with HS

Contingency/ Emergency
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Facility-based Service
Medical Services
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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