A panel calls for a 50% gas share for the provinces

The committee asked for full details of payments made to provinces over the past 16 years

A general view shows a unit of the South Pars gas field in the seaport of Asalouyeh, northern Persian Gulf, Iran, November 19, 2015. Photo: Reuters/File

ISLAMABAD:

The Senate Functional Committee on Decentralization on Friday ordered the federal government to ensure that provinces receive a 50 per cent share of revenue generated from oil and gas produced in their territories, in line with the 18th constitutional amendment.

The committee, chaired by Senator Zamir Hussain Ghumro, was present in the presence of Senators Poonjo Bheel and Jan Muhammad Baloch.

Reviewing the implementation of the 18th Amendment regarding oil and gas revenue, Senator Ghumro said the federation was receiving its constitutional share while the producing provinces were being denied the rights due to them, creating a sense of deprivation.

The committee requested full details of payments made to provinces over the past 16 years.

Ghumro expressed serious concerns over what he called the incomplete implementation of the 18th Amendment and the revival of federal ministries previously delegated to the provinces.

He recalled that under the notifications issued on December 2, 2010, April 15, 2011 and June 29, 2011, a total of 17 ministries dealing with provincial and concurrent matters had been transferred to the provinces. “The re-establishment of ministries dealing with provincial matters after June 30, 2011 was illegal,” he said.

According to him, education, health, national food security, culture and heritage, climate change, social initiatives, housing, EOBI, Evacuee Trust Property Board, Zakat and Ushr and several other institutions were operating in areas that constitutionally fall under provincial jurisdiction.

Senator Ghumro said although the federal government maintained that these ministries were only responsible for matters relating to the Islamabad Capital Territory (ICT) and federal obligations, the number of federal ministries had increased from the nine envisaged by the Constitution to 31.

“The Constitution provides for the creation of federal ministries responsible for defence, foreign affairs, finance, trade, communications, maritime affairs, science and technology, law and justice, as well as parliamentary affairs.”

The committee chairman said federal expenditure stood at around Rs 19 trillion, while the country’s combined tax and non-tax revenue stood at around Rs 20 trillion.

He maintained that apart from defense spending, which he described as justified in the current security environment, spending on other federal ministries should not exceed Rs1 trillion.

According to him, limiting federal spending to 13 trillion rupees could save between 5 and 6 trillion rupees per year, reduce dependence on foreign borrowing and strengthen the country’s financial sovereignty.

He also expressed concern over the inefficient functioning of the permanent secretariat of the Council of Common Interests (CCI) and called for a restructuring of the federal administrative system in accordance with the Constitution.

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