Handouts MPA 401

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Handouts

Course: Public

administration in Pakistan

Course code: MPA 401

Instructor Dr. Muhammad

Iftikhar ul Husnain



Table of contents



Public Administration in Pakistan

1. Public Administration1.1. Meaning:

Public administration is a part of the wider term “Administration. !ounderstand the meanin" of public administration we must# therefore#

$rstl% tr% to understand what administration means.

1.&. Administration' !he word administer is deri(ed from the )atin

words administrate# which means to care for or to look after people# to

mana"e a*airs. Accordin" to this wide de$nition almost e(er% human

acti(it% in(ol(es some kind of administration. +(en in primiti(e

societies# simple acti(ities like huntin"# food# "atherin"# etc.# could not

be carried on without some form of or"ani,ation. -omebod% had to

determine as to who will do what. ertain norms of beha(ior had to belaid down to decide the distribution of work amon" the members of the

primiti(e "roups. /f course# the administration at that time was rather

simple because the tasks to be carried out were also simple. ith the

"rowin" compleit% of modern life the administration of pri(ate as well

as public a*airs has become more and more comple. e would now

consider some of the de$nitions of administration "i(en b% prominent

scholars.

Luther Gulick has said# “Administration has to do with "ettin" thin"s

done2 with the accomplishment of de$ned ob3ecti(es.

ames L. McCann! de$ned Administration in these words#

“Administration is the or"ani,ation and use of men and materials to

accomplish a purpose. It is the speciali,ed (ocation of mana"ers who

ha(e skills of or"ani,in" and directin" men and materials 3ust as

de$nitel% as the en"ineer has the skill of buildin" structure or a doctor

has the skill of understandin" human ailments.

P"#ner and Presthus ha(e de$ned administration as “/r"ani,ation

and direction of human and material resources to achie(e desiredends.

1.$. %co&e of Public Administration:

!he thrust of the (arious de$nitions of public administration is that it

pertains to the administrati(e acti(ities of the "o(ernment. As is well

known# the acti(ities of the "o(ernment are commonl% di(ided into



three ma3or branches# namel%# )e"islati(e# +ecuti(e and udicial. !he

5uestion naturall% arises as to which of the acti(ities of the

"o(ernment are included in the stud% of public administration. !here

are two (iews on this sub3ect. Accordin" to one point of (iew# public

administration is concei(ed in a comprehensi(e sense to include all the

acti(ities of the "o(ernment# whether fallin" in the sphere of

le"islati(e# eecuti(e or 3udicial branch of the "o(ernment. Howe(er#

accordin" to the other point of (iew# 6public administration7 is

concerned onl% with such acti(ities of the "o(ernment which pertain to

the eecuti(e branch. ).D. hite takes the former broad (iew# while

)uther 8ulick supports the latter narrow (iew. !here is a further

narrowin" down of the scope of public administration b% restrictin" it to

these acti(ities of the eecuti(e branch which are connected with the

eecution of the policies. It means that the polic% formulation has to be

separated from the eecution of the polic%. It is onl% the eecutionwhich is supposed to form part of public administration accordin" to

this narrow (iew.

1.'. %igni"cance of Public Administration:1.4.1.Signifcance o Public Administration as an Instrument o

Governance;

!he most important function of the 8o(ernment is to "o(ern i.e. to

maintain peace and public order and to ensure the safet% and securit%

of the life and propert% of the citi,ens. It has to ensure that the

contracts are honored b% the citi,ens and their disputes settled. !his

most si"ni$cant role of the 8o(ernment is to be ful$lled throu"h the

instrument of public administration. In the be"innin" of the ci(ili,ation

this was probabl% the onl% function performed b% the public

administration. As the ci(ili,ation has ad(anced# man% (er% important

functions ha(e been taken o(er b% the 8o(ernment# but# the

importance of this basic function should not be minimi,ed. orthwhile

pro"ress or de(elopment is possible unless the citi,ens can li(e in

peace. !he continuin" performance of this function is like the presence

of o%"en in the air we breathe. It is hardl% noticed so lon" as it eists.Howe(er# in its absence ci(ili,ed life is impossible.

1.4.2.Signifcance o Public Administration as an Instrument o

Development and !ange;

!he public administration has to pla% a (er% si"ni$cant role as an

instrument of de(elopment and chan"e. !he administration of the



countr% re9ects the "enius of its people and embodies their 5ualities#

desires and aspirations. hene(er the people decide to proceed on the

road to de(elopment# their main instrument is the public

administration. !he% need trained manpower to run these schools#

colle"es and the technical institutions. !he% need technical manpower

to build roads# brid"es# buildin"s and to run the machines in the

industr%. !he% need scienti$c manpower to undertake research and

de(elopment. It is the well:de(eloped public administration which

makes all this possible. It is true that part of the e*ort comes in the

pri(ate sector# but it alone cannot complete the task.

1.4.".Signifcance o Public Administration as an Instrument o #elare

State;

In a modern democratic welfare -tate# the 8o(ernment has to pro(ide

man% ser(ices for the welfare of its citi,ens. It includes the pro(ision of schoolin"# medical facilities and social securit% measures. ith the

breakdown of 3oint families# the problem of lookin" after the old and

infants# orphans and widows comes up. ith the slowin" of economic

acti(it%# the problem of unemplo%ed %outh crops up. !he de(elopment

process brin"s up man% new problems like those of urban slums and

3u(enile delin5uents. !he welfare -tate has to identif% these problems

and de(ise solutions for them. !he formulation of these schemes and

their implementation is another si"ni$cant function of public

administration.

1.(. )e* Public Administration +)PA,

!he emer"ence of ;ew Public Administration <;PA= can be traced back to the

late 1>?0s. !here were (arious reasons for the emer"ence of the ;PA. !he

world had witnessed two 8reat ars b% that time and after the wars a

number of a"encies to alle(iate the human su*erin"s had been formed e.".

@;/# H/# @;I+# etc. Howe(er# these a"encies found it diBcult to

accomplish their tasks in the absence of e*ecti(e and eBcient administrati(e

s%stems in (arious countries. @nemplo%ment# po(ert%# population# etc.# were

increasin" (er% rapidl% and it was considered that these problems were due

to the ineBcienc% of the administrators and also due to the inade5uacies in

the perception about the scope of Public Administration.

1.$.1.%eatures o &PA

;PA focuses chie9% on followin" thin"s'



a. han"e and Administrati(e Cesponsi(eness i.e. operation 9eibilit% and

or"ani,ational adaptabilit% to meet the en(ironmental chan"es should

be in:built in the administrati(e s%stem.b. ;PA ad(ocates emphasis on Mana"ement:worker relations. !here

should be e5ual emphasis both on eBcienc% and human

considerations. !he new approach has to satisf% both the eBcienc%and the human relations criterion in order to achie(e success.

c. ;PA su""ests that small decentrali,ed and 9eible hierarchies in

or"ani,ational structures are more suitable in (iew of the increasin"

role of administration.1.?. -olution of Public Administration as a /isci&line'

It is interestin" to note that while Public Administration as an acti(it% is

as old as social life itself2 its stud% as an academic discipline is rather

recent. ;ot that Public Administration recei(ed an% thou"ht from

earlier philosophers and thinkers. -e(eral Indian and estern thinkersha(e dealt with the sub3ect in the past. ut# the administrati(e thou"ht

remained undi*erentiated from disciplines like political science# law

and ethics for a lon" time.

1.'.1.P!ase (ne )1**+,1-2' )Politics / Administration Dic!otom0.

It is well known that public administration was included in the

sub3ectEdiscipline of political science and oodrow ilson $rst

emphasi,ed the need to stud% it as a separate discipline. In an attempt

to car(e out an independent place for the sub3ect it is not unnaturalthat an etreme stand was taken b% scholars like 8oodnow and ).D.

hite. !he% emphasi,ed that politics and administration were two

distinct acti(ities and were to be studied separatel%. In his monumental

work “Politics and Administration <1>00=# 8oodnow contended that

there were two distinct functions of the 8o(ernment “Politics has to

do with policies or the epression of the -tate will# while

“administration has to do with the eecution of these policies. !he

le"islati(e branch of the 8o(ernment# with the help of 3udicial

interpretations# pro(ided the polic% frame work. !he eecuti(e branch

had to administer these policies impartiall%# politicall% and eBcientl%.

1.'.2.P!ase o )1-2+,1-"+ )!e Principles o Administration

+(er%thin" about Public Administration was thou"ht to be “factual or

“-cienti$c. -earch for scienti$c or uni(ersal principles of

administration was# therefore# onl% a step awa%. !he process was



hastened b% the -cienti$c Mana"ement Mo(ement which proceeded

the era of Principles of Administration. !he de(elopment of -cienti$c

Mana"ement in the usiness schools focused mainl% on the Assembl%

)ine# while the Principles of administration were de(eloped under the

school of thou"ht named “Administrati(e Mana"ement. !he latter

concerned itself with hi"her mana"ement. !he “Principles of

Mana"ement b% .. !a%lor <1>11= and writin"s of other authors like

rank and )illian# 8alibreth de(eloped principles of eBcient ph%sical

mo(ement for optimal assembl% line eBcienc%. !hese writin"s and the

whole -cienti$c Mana"ement Mo(ement concentrated on $ndin" “one

best wa% of doin" and or"ani,in" thin"s. !he% emphasi,ed that in

terms of technical eBcienc% there could be onl% /ne best wa% of

doin" thin"s which had to be found in e(er% work situation.

1.'.".P!ase !ree )1-"*,1-$- )S!ados o Doubt

!he a"e of certaint% of principles did not last lon". Foices of dissent

were heard from two directions. irstl%# serious ob3ections were raised

a"ainst the politics G administration dichotom%. It was contended that

politics and administration can ne(er be separated as the% were

or"anicall% linked with each other. -econdl%# the principles of

administration were seriousl% challen"ed on the "round that the% are

not lo"icall% consistent.

Althou"h the dissent to politics G administration dichotom% started in

the late thirties# .M. Mar7s edited (olume “+lements of Public

Administration <1>4?= made a ma3or contribution to such dissent. All

the fourteen articles of the book# written b% practitioners# pointed

towards an awareness of the fact that there was hardl% an% issue which

could be resol(ed b% (alue:free7 administration. It is almost impossible

to separate it from the (alue laden politics.

1.'.4.P!ase %our )1-$3,1-+3 )Searc! or Identit0

hile demolishin" the Principles of Administration# Herbert -imon

thou"ht of a new paradi"m of two mutuall% reinforcin" components of Public Administration2 (i,.# a pure science of administration based on a

thorou"h "roundin" in social ps%cholo"% and the other one concerned

with prescribin" for public polic%7. And# the Public Administration did#

in fact start searchin" for its identit%.



1.'.$.P!ase %ive )ater 1-+3 )Pubic Administration as Pubic

Administration.

Durin" the last three decades or so# the discipline of Pubic

Administration has made considerable pro"ress in establishin" its

identit%. In this 5uest# it has taken two directions. irstl%# it has beenusin" the administrati(e science route to stud% how and wh% the

or"ani,ations work the wa% the% do2 how and wh% people in

or"ani,ations beha(e the wa% the% do2 how and wh% decisions etc. are

made. More and more re$ned mana"ement techni5ues ha(e also been

taken from the mana"ement sciences and used. -econdl%# an attempt

has been made to de$ne public in public administration# with the

distinction between public and pri(ate bein" blurred# public

Administrationists are (eerin" round the (iew that the public in public

administration means public interest. !his new dimension is bein"

reco"ni,ed as public a*airs.

1.. A&&roaches to Public Administration'1.+.1.!e anagerial Approac!

General Characteristics:: !ends to minimi,e the distinction between public and pri(ate

administration.: Public Administration is essentiall% the same as bi" business and ou"ht

to be run accordin" to the same mana"erial principles and (alues.: rooted in the 1>th centur% ci(il ser(ice reformers who complained at

Jthe spoils s%stemJ <corruption# ineBcienc%# and the emer"ence of aclass of politicians=

: appointment ' based on JmeritJ and J$tnessJ rather than political

partisanship: tenure ' based on their eBcienc% and e*ecti(eness: Depend on the eistence of politics and administration dichotom%.: <(alues= PA is "eared toward maimi,in" e*ecti(eness# eBcienc%#

econom%: !his approach became the orthodo or classical (iew of how the public

ser(ice should be run.

1.+.2.The Political Approach5: Public administrators participate in public polic% makin" in the sense of

practical realit%.: -tress the (alues of representati(eness# political responsi(eness# and

accountabilit%.: Falues and political approaches con9ict with each other.: -ometimes# hard to measure e*ecti(eness1.+.".!e 6egal Approac!5



: Fiews PA as appl%in" and enforcin" the law in concrete circumstances: !he mo(ement toward the 3udiciali,ation of PA: Administrati(e processes increasin"l% to resemble courtroom

procedures.: deri(ed from two main sources

: substanti(e ri"hts : e5ual protection of the laws : maimi,ation of indi(idual ri"hts and libert% as a positi(e "ood

0 e5uit% : stands for the (alue of fairness

&. /eolution in Pakistan'.1. The Pre0Inde&endence &eriod:

efore the ad(ent of the ritish rule in India# there was no ad(anced

tradition of local self:"o(ernment in the modern sense. Howe(er# a

rudimentar% local "o(ernment s%stem did eist in the rural areas. !his

was the s%stem of (illa"e pancha%ats <literall% council of $(e= which

performed administrati(e# 3udicial and sometimes de(elopmentalfunctions <Metcalfe 1>1>=. Howe(er# in terms of "eo"raphical

co(era"e and histor%# Pancha%ats ne(er eisted o(er the whole of the

sub:continent and not in all periods in histor%# althou"h some s%stem

of (illa"e self:"o(ernment more or less eisted in the (arious a"es of

Indian histor%. Moreo(er# in terms of representation# the Pancha%at was

onl% rarel% representati(e of the (illa"e as a whole# often representin"

the foundin":families# upper castes and lar"e farmers. It is also worth

emphasi,in" that Pancha%ats were not the onl% form of (illa"e

"o(ernment in pre:ritish India.

&.&. )ocal 8o(ernments under the ritish'

In the areas that presentl% comprise Pakistan# local "o(ernments were

introduced b% the ritish not b% buildin" on the (illa"e pancha%ats# but

instead from scratch# followin" the anneation of -indh in 1K4L and of

Pun3ab in 1K4>. After the ar of Independence <or Indian Mutin%= of

1K# with the "o(ernance of India transferred from the hands of the

+ast India ompan% to the rown# attempts were made to co:opt the

nati(e elite b% establishin" representati(e local "o(ernments. !hese

local "o(ernments were formed in a “top:down manner in urban and

rural areas# with etremel% circumscribed functions and members who

were not locall% elected but nominated b% the ritish bureaucrac%.

Howe(er# despite le"islation for settin" up district committees in

almost e(er% pro(ince# “!he ommittees were nothin" more than a

con(enience to the District Ma"istrate to suppl% him with information



or to carr% out miscellaneous duties ... Filla"e life was hardl% touched

b% the new District ommittees. !he% were formed b% the District

Ma"istrate from amon" his mula5atis7 and other respectable citi,ens.

!he oBcial in9uence was almost o(er:powerin" <!inker 1>?K=.

&.L. Post0Inde&endence to A!ub'

8i(en that the independence mo(ement was dri(en b% political part%

mobili,ations at the pro(incial and hi"her le(els# post:independence#

there was understandabl% little emphasis on local "o(ernments which

had pla%ed little role in the independence mo(ement "i(en their

stron"er ties to the ritish. !hus b% 1>4 functional local "o(ernments

eisted onl% in Pun3ab in the form of (illa"e pancha%ats and municipal

councils# althou"h with mostl% non:elected members.

!he decade of the 1>0s was in "eneral marked b% political instabilit%with increasin" centrali,ation and a center increasin"l% dominated b%

the ci(il and armed. @nlike the on"ress Part% in India# the Muslim

)ea"ue in Pakistan failed to or"ani,e as a political part% and to utili,e

local bodies for de(elopin" its political base# thus failin" to replace the

district administration as a ri(al source of patrona"e.

.'. The A!ub Period:

ollowin" the imposition of the $rst Martial )aw in 1>K# national and

pro(incial assemblies were disbanded and the militar% "o(ernment

immediatel% set about pur"in" the political s%stem of politicians

throu"h the promul"ation of Public /Bces <Dis5uali$cation= /rder in

March 1>>. /win" to the len"th% procedure and limited scope of

P/D/# it was followed onl% a few months later b% +D/# +lecti(e

odies <Dis5uali$cation= /rder# which was applicable to an% person

who had held an% public oBce or position includin" membership of an%

electi(e bod% in the countr%.

!hus about ?#000 politicians and oBcials were dis5uali$ed under +D/

in the parlance of the time. ollowin" this dissolution of the elected"o(ernment# 8eneral A%ub established local "o(ernments in the form

of “asic Democracies <D=. Ds were used b% A%ub to le"itimi,e his

essentiall% unitar% new Presidential onstitution <1>?&=# which "a(e

e*ecti(e state power to the armed forces throu"h the oBce of the

President. !he 1>?& constitution eplicitl% linked the oBce of the

President to the newl% created local bodies b% declarin" the K0#000



asic Democrats as the +lectoral olle"e for the election of the

President and national and pro(incial assemblies.

&.. The 2ia and Post02ia Period'

After a nascent period under hutto# local "o(ernments were re(i(edb% 8eneral Nia ul Ha5. )ike A%ub# Nia combined political centrali,ation

at the federal le(el with decentrali,ation from the pro(incial to the

local le(el in order to le"itimi,e his militar% re"ime. Political

centrali,ation was achie(ed durin" the earl% %ears <1>:K= of the

re"ime throu"h the imposition of Martial )aw# which held the 1>L

onstitution in abe%ance# and was followed in 1>K b% the Kth

onstitutional Amendment that established indirect militar% rule

throu"h a 5uasi:Presidential form of "o(ernment. Decentrali,ation was

achie(ed throu"h the promul"ation of )ocal "o(ernment ordinances

<)8/s= and local bodies were elected in all four pro(inces durin" 1>>and 1>K0. In essence# the arm% sou"ht to use its old strate"% of di(ide

and rule7 b% creatin" a new and competin" class of collaborati(e7

local:le(el politicians <alal 1>>=. )ike A%ub# Nia also sou"ht to

neutrali,e the in9uence of political parties b% holdin" local elections on

a non:part% basis. Moreo(er# electoral competition was si"ni$cantl%

weakened when the arm% dis5uali$ed a lar"e number of candidates

with a PPP aBliation in 1>>.

&.?. -olution of the Local Goernment %tructure 134(01333'

!he re(i(al of elected pro(incial and national "o(ernments in 1>K

reinforced the locali,ation of politics that had be"un with the 1>>

local bod%7s election. !he dominance of these re(i(ed assemblies b%

local bodies7 politicians helped transplant the culture of local bod%

politics to the pro(incial and national le(els. !his tendenc% was

reinforced b% the non:part% nature of the 1>K assemblies and

"o(ernments# which personali,ed patrona"e7 as elected "o(ernment

ministers be"an to use de(elopment funds to increase their indi(idual

chances of reelection. Moreo(er this personali,ation of politics did not

re(erse despite the re(i(al of part%:based ederal and Pro(incial

Assemblies and "o(ernments in 1>KK. !he persistence of this tendenc%

is partl% an outcome of weakenin" part% or"ani,ations# which is due to

ad(erse de 3ure and de facto measures instituted b% the hutto and Nia

re"imes. As a result the allocation of part% tickets and ministries is

more an outcome of indi(idual bar"ainin" between powerful local



brokers and part% leaders rather than bein" based on collecti(e

decision makin" within the political part% or"ani,ations as borne out b%

the etensi(e switchin" of candidates between political parties that

has taken place since 1>K.

L. The )e* /eolution of Po*er Plan'

!his de(olution process substantiall% restructured the sub:pro(incial

<district and below= "o(ernment structure. hereas pre(ious locall%

elected "o(ernments did eist at this le(el# their powers were fairl%

limited and most of the functions were carried out b% pro(incial line

departments# a deconcentrated bureaucratic tier that did not report

directl% to pro(incial elected representati(es. @nder de(olution# a new

elected "o(ernment was created at the district le(el and linked

formall% to local "o(ernments at the sub:district le(els <!ehsil and

union council=.

!he district "o(ernment is headed b% an elected na,im <Ma%or= and

the district administration head# the District oordination /Bcer <D/=

reports directl% to the elected head of the "o(ernment. !his is a

si"ni$cant de(iation from the pre(ious s%stem where the de facto head

of the district administration# the Deput% ommissioner <D=# reported

to the non:elected pro(incial secretariat. Moreo(er# the oBce of the D

has been abolished and the new head of district administration# the

D/# is no lon"er the district ma"istrate or the district collector.

4. The Political -conom! of /ecentrali5ation'

!he central tendenc% re(ealed b% our historical anal%sis is that local

"o(ernments ha(e been enacted b% non:representati(e re"imes to

le"itimi,e their control o(er the state. )e"itimac% has been sou"ht b%

creatin" a locali,ed patrona"e structure that produces a class of

collaborati(e politicians7 who act as a conduit between local le(el

constituencies and the non:representati(e center. !his is as true of the

ritish period as it is of the post:independence period. !he di*erencebetween these periods lies in the nature of the non:representati(e

institution that established its authorit% o(er the state. In the pre:

independence period it was the ritish imperial state that promul"ated

local "o(ernment reforms. In the post:independence period it has been

the Pakistani militar%. Musharraf7s local "o(ernment reforms represent

a continuit% of this central historical tendenc%. @nlike attempts at



decentrali,ation in some other countries# which appear to ha(e been

moti(ated more b% chan"es in state ideolo"% or multilateral pressure#

in Pakistan# the militar%7s need for le"itimi,ation of state control

appears to be a prime reason behind the recurrin" attempts at local

"o(ernment reform. Multilateral pressure for decentrali,ation in

Pakistan had eisted since the mid:nineties. Howe(er# no ma3or

attempts at decentrali,ation were initiated b% the Pakistani state until

8eneral Musharraf7s takeo(er in 1>>>.

A corollar% to this central tendenc% is that local "o(ernment

empowerment has alwa%s been combined with centrali,ation of

political power in the hands of the non:representati(e center. !he

centrali,ation of political power has undermined representati(e

institutions not onl% at the le(el of the center but also at the le(el of

the pro(inces. +ach attempt at centrali,ation of political power b% the

militar% durin" the post:independence period has initiall% in(ol(ed the

dissolution of elected pro(incial and federal assemblies and has

in(ariabl% been followed b% the enactment of a presidential or a 5uasi:

presidential constitution# which preser(es the non:representati(e

institution7s role at the center e(en after the re(i(al of representati(e

"o(ernments. entrali,ation of political power has also in(ol(ed

selecti(e dis5uali$cation of political part% representati(es and at times

outri"ht bans on all or certain political parties. As a result# these

attempts at centrali,ation of political power ha(e considerabl%

weakened the or"ani,ational structure of political parties and ha(edistorted electoral competition at the pro(incial and central le(els.

. The role of the 6ureaucrac!'

!he historical anal%sis shows that there has been a chan"e in the

tendenc% of non:representati(e centers to use the bureaucrac% to

control local "o(ernments. ureaucratic control o(er local "o(ernments

was most eplicit durin" the ritish and A%ub periods. !he Nia re"ime

loosened de 3ure bureaucratic control o(er local "o(ernments althou"h

the deput% commissioner continued to retain si"ni$cant de factocontrol. !he Musharraf re"ime has furthered this trend throu"h two

means' irst# it has considerabl% weakened the pro(incial bureaucrac%

b% reassi"nin" a lar"e proportion of their functions to elected local

"o(ernments and b% abolishin" the oBce of the deput% commissioner.

-econd and more importantl%# are the accountabilit% chan"es brou"ht

about b% the present s%stem whereb% the pro(incial bureaucrac% at



the local le(el has been made accountable to the elected heads of

district and !ehsil "o(ernments.

!his weakenin" of bureaucratic control o(er local "o(ernments

represents a si"ni$cant de(iation from the earlier tradition where

political support for the center was harnessed throu"h an alliancebetween the bureaucrac% and powerful rural notables at the local le(el

!he continuit% of this alliance was dependent on the bureaucrac%

deli(erin" patrona"e# administrati(e protection and protection of

propert% ri"hts in fa(or of the dominant elites in (illa"e societ% who# in

turn# deli(ered political support and lack of political unrest for the

center. !he abilit% of these elites to perform these functions depended

upon their control o(er land and was institutionali,ed b% the colonial

and post:colonial state b% accordin" them a mediatin" role between

the state and the (illa"e in re(enue# ci(il and criminal matters. Capid

urbani,ation# "reen re(olution# industriali,ation and the rise of mass

electoral politics durin" the sities and se(enties resulted in a

breakdown of this social and political tradition.

?. Problem of Goernance in Pakistan'

!he a(ailable literature on the nature of state power in Pakistan has

essentiall% eamined how the state apparatus came to predominate

o(er the political s%stem. ithin the state apparatus# the bureaucrac%

and the militar% ha(e so far been lumped as co:sharers of the piece of the power cake that has accrued to the state apparatus7 as opposed to

the political elites in the ci(il societ%. !he d%namics between the

bureaucrac% and the arm# and the chan"in" internal balance of power

within the state structure itself ha(e hitherto not been anal%,ed. It

would be useful to eamine these d%namics# since the bureaucrac% and

the militar% are two 5uite di*erent institutions. !he% not onl% relate in

di*erin" wa%s to the ci(il societ%# but in fact# it can be ar"ued# ha(e

mo(ed in opposin" directions in terms of the nature of internal chan"es

within these two institutions of the state respecti(el%.

!he rulin" elite at the dawn of independence consisted of an alliance

between landlords and the nascent industrial bour"eoisie# backed b%

the militar% and the bureaucrac%. !he nature of the rulin" elite

conditioned the nature of the economic "rowth process. Howe(er# the

latter# in turn# in9uenced the form in which state power was eercised.

+conomic "rowth was of a kind that brou"ht aOuence to the few at the



epense of the man%. !he "radual erosion of social infrastructure#

endemic po(ert% and the "rowin" ine5ualit% between the re"ions

undermined the ci(il societ% and accelerated the trend towards

militari,ation.

+ach re"ime that came into power sou"ht to le"itimi,e itself throu"han eplicit ideolo"%' !he A%ub re"ime propounded the ideolo"% of

moderni,ation and economic de(elopment. !he hutto re"ime sou"ht

le"itimac% in the ideolo"% of redeemin" the poor <ood# lothin" and

-helter for all= throu"h socialism. It is an inde of Nia7s fear of popular

forces# that he initiall% sou"ht 3usti$cation of his "o(ernment precisel%

in its temporar% character.

etween 1> and 1>K# with the stead% in9ow into Pakistan of Af"han

refu"ees and the use of Pakistan as a conduit for aims for the Af"han

war# two trends ha(e emer"ed to fuel the crisis of ci(il societ%'

1. A lar"e proportion of weapons meant for the Af"han "uerrillas ha(e

$ltered into the ille"al arms market.

&. !here has been a rapid "rowth of the heroin trade. Powerful ma$a

t%pe s%ndicates ha(e emer"ed which operate the production# domestic

transportation and eport of heroin. Man% Af"han refu"ees who now

ha(e a si"ni$cant share of inter:cit% o(erland car"o ser(ices ha(e also

been inte"rated into the dru" s%ndicates.

In recent %ears the polari,ation of societ% alon" reli"ious# ethnic#

communal and re"ional lines has been accompanied b% an under

minin" of social (alues throu"h which di(erse communities had li(ed

to"ether in a pluralistic societ%. !he social polari,ation is now fuelled

b% (iolence and (arious forms of banditr% which ha(e reached a scale

that threaten not onl% the credibilit% of political institutions# but raise

the 5uestion of whether "o(ernance based on a centrali,ed state

structure is feasible at all. !his is a 5uestion that confronts not 3ust

Pakistan but a number of other -outh Asian countries.

After four decades of une5ual de(elopment and in the absence of

(isible opportunities of redress within eistin" institutions# the depri(ed

sections of societ% responded b% assertin" their ethnic# lin"uistic and

re"ional identities. !hrou"h such an assertion the% could use an easil%

accessible emoti(e char"e to mobili,e militanc% and thereb% eercise

political pressure.



aced with this crisis the rulin" elites o(er the %ears ha(e been unable

to "rasp the problem as essentiall% arisin" from a failure to either

deli(er the "oods to the poor# or to in(ol(e them in economic and

political decision makin". Cather# the elites ha(e understood the

assertion of sub:nationalism as a law and order problem located in the

colonial discourse# and ha(e attempted to use selecti(e coerci(e force

in attemptin" to 5uell it. @nderstandabl%# this response has not onl%

intensi$ed the problem7 but has also allowed a "rowin" importance to

the securit% a"encies in the structure of state power itself.

. Corru&tion and Goernance in Pakistan'

orruption de$ned as misuse of entrusted power for pri(ate bene$t is

unfortunatel% endemic in Pakistan. ;o structure# no tier and no oBce

of public sector is immune from it. Its spread is enormous. It has

reached e(er% or"an of state be%ond eecuti(e it has put its claws

on 3udiciar% and le"islature e(en. It would be no ea""eration to sa%

that the whole bod% of the state of Pakistan is su*erin" from this

malaise and wailin" under its dead wei"ht.

orruption manifests itself in (arious forms in Pakistan# includin"

widespread $nancial and political corruption# nepotism# and misuse of

power. oth pett% and "rand corruptions are pre(alent in the countr%.

orruption clouds almost all tiers of "o(ernment2 it is all per(asi(e and

deepl% entrenched. !he le(el of corruption in the societ% ultimatel%depends on the (alues and morals of that societ%. /(er the period

acceptabilit% of corruption has rather increased in the societ% and

there is little e(idence that people feel "uilt% about their own role in

corruption. !he scale of corruption is hi"hest in de(elopment pro3ects

and procurement <includin" defense and public sector corporations=

and the bank loan write o*s. hereas me"a corruption is mainl% in

de(elopment pro3ects# bank loans and procurements which rock the

foundation of the econom%# the common man is more interested in the

pett% and middle le(el corruption that he encounters in the dail%

dealin"s in the "o(ernment oBces.

!he roots of corruption in Pakistan date back to the colonial period

when the ritishers rewarded lands and titles to those who were their

lo%alists leadin" to nepotism and corruption. !wo ma3or crises pla%ed a

fundamental role in the "enesis of corruption in this part of the world2

the spiral in the defense related purchases durin" and after the orld



ar II and allotment of e(acuee propert% after the partition of Indian

subcontinent <@;DP# &00&'11=. !his was followed b% industrial and

trade licensin" and patrona"e schemes like bonus (oucher and route

permits in 1>0s and 1>?0s. !he nationali,ation polic% of the 1>0s

created new opportunities for corruption and "a(e birth to a new breed

of corrupt "o(ernment oBcers. !he decade of 1>K0s witnessed the

sur"e of corruption in reli"ious and business circles.

!he causes of this malad% are to be found in the socio:cultural and

political matri of the Pakistani societ% which presentl% is faced with a

"radual loss of (alue s%stem and e(en identit%.

Pett% corruption is mainl% for "ettin" access to public ser(ices or to

b%pass or twist the laws and the rules. Middle and "rand corruption

pertain to public contractin" and procurement.

In a pre:dominantl% capitalist economic order and the increasin"

adherence to principles of free market# rise in corruption and speed

mone% clearl% makes an economic sense. -ome of the so:called

economic reasons can be enumerated as under'

1. ribe ser(es as an incenti(e for the "o(ernment ser(ants.&. It is a kind of price that e5uates suppl% and demand in e(er%

$eld and oBce.L. Paradoicall% in man% cases it reduces transaction cost for the

petitionersEapplicants b% sa(in" their time and miscellaneouscosts on fre5uent (isits.4. In case of "ettin" contracts# certain concessions or eemptions

and bu%in" shares and parcels of pri(ati,ed $rms the rate of

return on e(er% unit of bribe is phenomenal.. -imilarl% net "ains throu"h bribin" the (oters score o* the cost

of the (enture.

?. Pa%ments for "ettin" fa(orable decisions in ci(il suits ma% be onl%

a fraction of the (alue of the suit. -imilarl% securin" one7s libert% in

criminal cases in(ol(in" hu"e sums has a lot of intrinsic (alue.

. “Hi"h ine5ualit% can lead to "reater incenti(es for corruption

.1. -#orts to Curb Corru&tion'

orruption can be curbed or limited throu"h the presence of a

monitor or a monitorin" process. Althou"h pro(incial Anti:



orruption +stablishment was put in place in 1>?0s# and a

ederal In(esti"ation A"enc% was constituted to $"ht corruption

in public sector# it turned out that anti: corruption arm of the

police is the most corrupt. -lowl% and "raduall% the tendenc% for

corruption "ained momentum and "ot the better of

"o(ernmental e*orts.

!he accountabilit% e*ort was phenomenal with a thumpin"

response from the public and a loud and clear messa"e for the

delin5uents. ut half of it e(aporated due to political ei"encies

of election &00& and the remainin" half became thin air with the

promul"ation of ;ational Ceconciliation /rder <;C/= in /ctober

&00.

;C/ was the worst law e(er made in human histor% to formali,e

and le"ali,e me"a corruption. !here was a si"ni$cant backslidin" in the accountabilit% e*ort after the announcement of this

ordinance. Accountabilit% e*orts which had started at a (er%

promisin" note and with a tellin" e*ect especiall% with the

establishment of ;A recei(ed set back close to the "eneral

election &00& when the accountabilit% structure was used for

arm twistin" of the politicians to rope them in for a new Qin"s

Part%. ;C/ was the last nail in coBn.

K.

Historical Look at &arliament Houses inPakistan'

!he Parliament of Pakistan (i, the onstituent Assembl% of Pakistan:

met on Au"ust 10# 1>4 in the old -indh Assembl% uildin" at Qarachi.

/n Au"ust 11# 1>4# Ruaid:i:A,am Muhammad Ali innah# the founder

of Pakistan# was elected unanimousl% as its $rst President. It was in this

(enue that the /b3ecti(es Cesolution# which now ser(es as the "round

norm of Pakistan# was passed. In 1>?# the $rst onstitution of the

Islamic Cepublic of Pakistan was adopted in Qarachi at the same -indh

Assembl% buildin". -indh Assembl% buildin" in Qarachi and Pro(incialAssembl% chamber in Dhaka were used for ;ational Assembl% sessions.

After the promul"ation of the -econd onstitution of 1>?&# ;ational

Assembl% sessions used to be held both at Dhaka and Cawalpindi. !he

Parliament was unicameral. At the $rst session of the Parliament at the

A%ub Hall# Cawalpindi# the Martial )aw# imposed in 1>K# was re(oked.



rom 1>& to Ma%# 1>K? onwards# the -tate ank uildin" in Islamabad

functioned as the ;ational Assembl% of Pakistan. !he Interim

onstitution of Pakistan was adopted in April 1>&. !he $rst bicameral

le"islature of Pakistan was born after the adoption of onstitution of

the Islamic Cepublic of Pakistan in 1>L. It was a"ain here that the

Martial )aw# imposed in ul% 1># was re(oked on December L0# 1>K.

!he foundation stone of the Parliament House was laid on Au"ust 14#

1>4 b% Prime Minister Nul$kar Ali hutto and after its completion in

Ma%# 1>K? the Parliament: the ;ational Assembl% and the -enate: has

ac5uired a permanent abode in the present Parliament House#

Islamabad on Ma% &># 1>K?.

>. udiciar! in Pakistan'

/n the Au"ust 14# 1>4# the Indo:Pakistan -ub:continent waspartitioned and an Independent Dominion of Pakistan came into bein".

As pro(ided in the Indian Independence Act# 1>4# the new Dominion

was to be "o(erned as nearl% as possible in accordance with the

8o(ernment of India Act# 1>L2 where under administration of ritish

India was earlier bein" carried out. /f course# the laws of ritish India

eistin" immediatel% before the date of Independence continued with

necessar% adaptations and modi$cations as the laws of Pakistan. In

this wa% no (acuum was created in the rule of law. ust as there

occurred no break in the drain of le"al continuit%# the pattern of 3udicialauthorit% too# remained the same# althou"h de(elopmental acti(ities

on a lar"e scale were undertaken in the $rst decade from 1>4:1>

and thereafter.

3.1. Hierarch! of Courts in Pakistan:

Pakistan has inherited the ritish:Indian udicial structure. At the ape

of the p%ramid of this 3udicial structure is the -upreme ourt# which

acts as the $nal "uardian of the onstitution. It is also the $nal ourt of

Appeal in matters arisin" out of cases decided b% the Hi"h ourts# and

in this capacit%# it replaces the udicial ommittee of the Pri(% ouncil#

sittin" in )ondon. ;et in the "radation are the four Hi"h ourts in the

Pro(inces# eercisin" "eneral control o(er the administration of 3ustice

in their respecti(e territorial limits. @nder the Hi"h ourts are the

District and -essions ud"es and Additional District and -essions

ud"es with 3urisdiction in both ci(il and criminal matters. elow the



District and -essions ud"es# there are on the ci(il side# i(il ud"es

and di*erent "rades. /n the criminal side# there are District

Ma"istrates# Additional District Ma"istrates and other Ma"istrates

eercisin" (arious powers. In addition# there are se(eral -pecial ud"es

for tr%in" speci$c t%pes of cases and# likewise# there are -pecial ourts

and !ribunals with 3urisdiction conferred on them in speci$ed $elds

onl%. !he hierarch% of the ourts as eplained abo(e ma% be illustrated

b% means of a dia"ram# as follows'

10. 7mbudsman'

/mbudsman is a -candina(ian institution# and -weden was the $rst

countr% to adopt it in its present form in 1K0>. inland adopted the

institution in 1>1>2 Denmark had recourse to it in 1>L and ;orwa% in

1>?L. ;ew Nealand# a common law countr% with parliamentar% form of

"o(ernment# (oted for it in 1>?&# and +n"land has followed suit in

1>??. !he institution is known b% di*erent names in di*erent countries

where it functions. /mbudsman is the -wedish term# which meansSrepresentati(e# a"ent# attorne%# solicitor# deput%# pro%# dele"ateS#

and the oBcial desi"nation "i(en to the institution (aries from countr%

to countr%. ut /mbudsman# bein" the most popular term in (o"ue# is

used for uniformit%.

11. 6udget Process in Pakistan:



!he ud"et is an important polic% document throu"h which the

8o(ernment establishes its economic and social priorities and sets the

direction of the econom%. It re9ects the fundamental (alues underl%in"

the 8o(ernmentJs economic policies and ob3ecti(es. How "o(ernment

policies a*ect the li(elihood of a countr%Js people depends on ta

le(els# spendin" priorities# and the impact of policies on in(estment#

emplo%ment# and conse5uentl% national income. !he Parliament is the

most appropriate place to eamine the 8o(ernmentJs bud"et proposals

and to ensure that these best match the nationJs needs and peopleJs

aspirations. It is therefore imperati(e for parliamentarians to pla% a

proacti(e role in the bud"et process. !he preparation of the bud"et

draft is the task of the 8o(ernment <i.e. the eecuti(e=. Howe(er#

bud"ets are best formulated when appro(ed throu"h a consultati(e

process with parliamentarians <i.e. the le"islature= and members of

ci(il societ%.

!he $scal %ear in Pakistan starts from ul% 1st. !he ud"et proposals#

made b% the inance Ministr% and considered and appro(ed b% the

abinet# are presented in the Parliament. !here is no formal pro(ision

in the rules of procedure for a pre:bud"et discussion or consultation on

the part of the Ministr% to en"a"e the public or the Parliament on $scal

matters and issues. hen appro(ed b% the abinet# the inance

Minister# on behalf of the 8o(ernment# deli(ers his ud"et speech in

the ;ational Assembl%. ;o other business is allowed in the House on

that da%. !he sta"es of the discussion of the ud"et are as follows'

1= 8eneral Discussion on the ud"et

&= Discussion on Appropriations

L= Discussion and (otin" on Demands for 8rants

Accordin" to the Cules of Procedure of the ;ational Assembl%# the

-peaker allots da%s for the di*erent sta"es of the ud"et. It re5uires

two da%s to lapse between the da%s the ud"et is presented and the

$rst da% of the 8eneral Discussion. !he Cules prescribe that not lessthan four da%s should be allotted for the 8eneral Discussion.

An% member can mo(e a cut:motion to reduce the amount of demand.

+ach Demand for 8rant is discussed and (oted upon. onse5uentl%# a

Fote of Account is taken and the inance ill is passed. !he ud"et is

submitted to the -enate for recommendations. !he -enate can make



recommendations on the ud"et to the ;ational Assembl% within

se(en da%s. !hese recommendations are not bindin" on the ;ational

Assembl%.

-ome of the areas in which the Parliamentar% ud"et Process in

Pakistan needs ur"ent impro(ement are as follows'

a. !he period allowed between the presentation of ud"et and its

passa"e is too short for an% meanin"ful debate or input b%

parliamentarians.

b. Indi(idual parliamentarians and the Parliament as an institution#

lack the infrastructure to "i(e research and anal%sis support for

an e*ecti(e ud"et debate in the Parliament.

c. !he ud"et relatin" to Defense ser(ices lacks details. +(en the

distribution amon" the three ser(ices such as Arm%# Air orce

and ;a(% is not pro(ided.

d. !he -tandin" ommittees both of ;ational Assembl% and -enate#

which are mostl% formed in line with the Ministries and Di(isions#

ha(e not been assi"ned an% role in the ud"et process. +(en the

-tandin" ommittees on inance do not pla% an% role in the

ud"et process.

e.

1&. )ational 8inance Commission +)8C,:

; Award is a constitutional obli"ation. It is clearl% indicated in the

Article 1?0 of the “onstitution of Islamic Cepublic of Pakistan# 1>L

that it has been made mandator% for the "o(ernment to compose ;

Award at an inter(al etendin" not more than %ears for the amicable

resource distribution amon" the federation and its respecti(e units.

Pro(inces then also re:distribute re(enues amon" lower tiers of the

"o(ernment# throu"h a re(enue:sharin" formula throu"h P Awards.

And this wa%# the state functions. !he central "o(ernment collectedmost of the re(enues and then redistributed (erticall% between the

federal and the pro(incial "o(ernments# and hori,ontall% amon" the

pro(inces.

Cesource sharin" between the federation and the federatin" units was

started since the creation of Pakistan. Prior to independence# ;ieme%er



Award <under the 1>L Act= was adopted to allocate resources amon"

federal and pro(incial "o(ernments in the ritish India. After the

formation of Pakistan# same award was followed althou"h with some

ad3ustment in railwa% bud"et# sharin" of income and sales ta till

March L0# 1>& TPakistan <1>>1=U. All pro(inces of est Pakistan were

declared one unit durin" 1>2 these were considered as separate

identities as of +ast Pakistan. !herefore# after the one unit there were

onl% two units namel% +ast and est Pakistan. !wo awards were

announced durin" that period for %ear 1>?1 and 1>?4. Cesources were

distributed onl% amon"st these two units.

!he $rst award which was presented b% Mr NA hutto "o(ernment in

1>4# under this award fewer taes were included in the di(isible pool

which consisted of income ta# sales ta and eport dut% while the

criterion used for resource redistribution was recommended to be

population. Cesources were (erticall% distributed at a $ed ratio of

&0'K0 amon" federal and pro(incial "o(ernments. Pun3ab7s share

increased from ?.0 percent <1>0 Award= to ?0.& percent while the

three other pro(inces su*ered# with -indh su*erin" the most because

population bein" the sole criterion for distribution.

After almost 1? %ears of break# credit "oes to the then "o(ernment of

Prime Minister ;awa, -harif for the fourth ; Award# in declarin" a

consensus ; Award with some positi(e recommendations in April

1>>1. !he 4th ; Award si"ni$cantl% increased the (olume of pro(incial shares in the re(enue collected b% federal "o(ernment b%

around 1K percent as compared to 1>4 Award. !he 4th ; Award

was a si"ni$cant mo(e forward towards $scal decentrali,ation b%

etendin" more $nancial autonom% to the pro(inces. esides these in

this award for the $rst time the pro(inces7 ri"ht on net h%del pro$t#

de(elopment surchar"e on "as and ecise dut% on crude oil was

admitted and amounts were relocated in the shape of strai"ht transfers

to the pro(inces.

/ne wa% of distributin" the resources is formula:based which includes'<i= ;# <ii= P# <iii= ederal to local# and <i(= )ocal to local. !he other

method is random transactions like de(elopment# special "rants#

eecuti(e# discretionar% and parliamentarians7 funds# etc. !here are

alread% si ; awards were implemented. !he th ; award of

Pakistan was a"reed durin" the end of December &00>. It is imperati(e

to know the ma3or features# implications and impacts of the th ;



award under the federalism. !herefore# the paper will re(iew the

o(ertime ; awards in the countr% with special reference to the th

one. !he paper consists of four parts includin" this introduction where

federalism and brief introduction of the ; award was discussed. !he

second part will discussed the salient features of the th ; award

and the wei"htin"s or formula used in the present ; award. !he

steps taken for pro(incial e5uali,ation in this award are also discussed.

Althou"h# the focus of the paper is ; award but 3ust to know how

pro(inces distributed their resources# the Pro(incial inance

ommission <;= Awards formula and Indian inance ommission

are also discussed for comparison and better understandin" of awards

in this section. !he net section showed about ma3or issues and

implications of th ; award and 1Kth amendment of the constitution

of Pakistan. efore# describin" the last and the $nal section which

hi"hli"hts the conclusion and recommendations# for practices tostru""le some positi(e lessons are also described in the fourth section.

12.1. !e +t! &% Aard and its Salient %eatures5

!he current th ; Award has arri(ed after under"one di*erent make

o(er. /(er time $scal federalism has remained a rou"h road to ride in

Pakistan. It is worth wise to note that out of a total of se(en

ommissions includin" the recent th Award# constituted after the

1>L onstitution# onl% four ha(e come up with additional parameters

to share out the resources with the federatin" units. !he resourcetransfer paradi"m has alwa%s been the most important $llet of

contro(ers% amon" the stakeholders. inancial resources are the ma3or

in"redient for de(elopment. udicial and e5uitable distribution of

resources is the fundamental to make up an% beneath de(eloped or

under pri(ile"ed area and to win con$dence of federatin" units.

A less s%stematic approach has been adopted to decentrali,e the

$nancial matters in Pakistan since the ?th ; award. /(er time# the

di(isible pool has been epanded due to hea(% reliance on indirect

taes as well as impro(ement in the collection. Population is the soledistribution criteria# adopted in all ; awards from the di(isible pool.

!his has raised friction amon" the pro(inces# necessitatin" inclusion of

other potential (ariables e(ol(ed from international best practices. In

addition to that# absence of technical eperts and permanenc% of the

; is another impediment. !he ; is supposed to pro(ide the

framework for amicable distribution of resources between the federal



and the pro(incial "o(ernments for the 3oint "oal of de(elopment and

prosperit%.

Interestin"l%# if we look at the historic ; award in the countr%# one

do start wonderin" as to wh% Population has onl% been kept as the

criteria for distribution of ; award# while it was not consider amon"the pro(inces i.e. +ast Pakistan and est Pakistan. +ast Pakistan before

1>1 was more populous then est Pakistan but it was still

discriminated b% the est Pakistan. At that time# the distribution of

resources based on population was not at all raised b% an%bod% since it

would ha(e resulted in lar"er share of +ast Pakistan from the ederal

Di(isible Pool or in ederal ud"et for +ast and est Pakistan. !here

are man% reasons that can be attributed to the 1>1 incident of

an"ladesh creation but one of the ma3or is the “Distribution of

Cesources. !his infuriated the an"ladeshi people and contributed

towards their $nal re(olt a"ainst the 8o(ernment owned b% est

Pakistan.

!he demo"raphic chan"es take place accordin" to the economic

situation. People from around the world started mo(in" towards Middle

+ast and Mala%sia when it was economicall% de(eloped. +(en within a

countr% from underde(eloped to de(eloped areas. Population mi"ration

took place in hina from less de(eloped estern hina towards more

De(eloped +astern hina. !herefore# the distribution of population can

ne(er e(er be the sole criteria of distribution of resources from thecentral pool. Howe(er# in Pakistan# no "o(ernment was able to chan"e

it. !hat brin"s us towards the contro(ersies facin" the ; Award and

a"ain threatenin" the stake of federalism in Pakistan.

!he ; is belie(ed to o*er the structure for amicable allocation of

resources amon" all stakeholders i.e. the federal and the pro(incial

"o(ernments for the 3oint ob3ecti(e of de(elopment and prosperit%.

!here is a need for addition of other factors like infrastructure# po(ert%#

backwardness# re(enue "eneration# en(ironment# etc. to be taken into

description for e5uitable and 3udicial distribution of resource. Fariouscriteria are used for resource distribution from central to pro(incial

"o(ernments in India. !herefore# it is imperati(e to de(ise an ;

award formula keepin" into di*erent aspects of de(elopment. !he

matter of resource sharin" amon" federal and pro(incial "o(ernments

ne(er pro(ed to be eas% and is a much diBcult issue. Historicall%# the

problem of resource distribution is ne(er taken seriousl% and it is also



(er% diBcult because consensus of all stakeholders is mandator% for

de(elopin" an% new ; awardin" formula. !hat is wh% new award

cannot be announced because the four pro(inces ha(e failed to

de(elop consent.

In the th ; award reconciliation# -indh# alochistan and Qh%berPakhtunkhwa <QQP= want multiple criteria# whereas# Pun3ab interest

was in the sole population criteria. -indh also want substantial share

for re(enue <sale ta# ser(ices collection=. Most ta receipts are

collected from Pun3ab and -indh. Almost all custom duties are collected

at the Port of Qarachi. QPQ also wants po(ert%# while alochistan bein"

the lar"est and scattered populous pro(ince emphases the in(erse

population densit% in the award.

In order to foster national unit% and stabilise the democratic s%stem of

"o(ernment in Pakistan# a "reat and plausible decision was a"reedupon on L0th December &00> at 8awadar# alochistan b% the

representati(es of all pro(inces dul% si"ned b% -%ed Vousal Ca,a

8illani# the Prime Minister in re"ard to the th ; award after 1>

%ears of contro(ersial. !he ; in a record period of four months

<Au"ust &00> to December &00>= amicabl% sol(ed lon" standin" issues

and brou"ht a mutuall% a"reed award. ;o (ote of dissident came at a

time of appro(al of the th award. redit "oes to democrac%2 new ;

Award was a re9ection of sacri$ces and accommodation b% bi" and

small pro(inces of the countr%. !he new Award would come into e*ectfrom the net $nancial %ear <&010:11=# o(er the distribution of $nancial

resources# amon" the pro(inces of Pakistan# b% the federal "o(ernment

on annual basis.

In the th ; award the demands of alochistan# -indh and QPQ were

accepted. It is based on a multifactor formula beside population#

po(ert%# underde(elopment# and in(erse population densit% criteria

were also considered. ederation sacri$ced more than 10 percent of its

share to pro(inces. rom ederation about Cs && billion more were

"ranted to pro(inces durin" &010:11 bud"ets TPakistan <&010=U. !heth ; award has introduced a si"ni$cant new measurement for

resource sharin" to the ful$llment of all units of a federation. All

stakeholders ha(e also a"reed to cut collection char"es to 3ust 1

percent from the eistin" le(el of percent which will boost the real

transfers to the pro(inces from the di(isible pool. !he pro(incial share

of the di(isible pool would increase from 4. percent to ? percent in



the $rst %ear of ; award V &010:10 and . percent in the

remainin" %ears of the Award <!able 1=. It is indeed the $rst ; award

with a new national spirit to accommodate the demands of smaller

units of federation. Pro(ince wise distribution of population and in(erse

population densit% is estimated on the base of data obtained Pakistan

-tatistical Vear ook &00K published b% ederal ureau of -tatistics#

Islamabad TPakistan <&00>=U.

In the new ; award formula# the ederation and the pro(inces of

Pun3ab# -indh and Qh%ber Pakhtunkhwa ha(e accepted the special

needs of alochistan and a"reed to pro(ide alochistan Cs KL billion

<>.0> percent= of the pro(incial pool in the $rst %ear of the Award. !he

th ; Award has "i(en K& percent wei"hta"e to population# po(ert%

10.L percent# re(enue collection percent <&. percent re(enue

"eneration# &. percent re(enue collection=2 while the area will "et &.

percent share. It is a "ood omen that after considerin" special needs of

alochistan and application of the multiple indicators# Pun3ab pro(ince

would "et 1.4 percent# -indh &4. percent# Qh%ber Pakhtunkhwa

14.?& percent and alochistan >.0> percent. In the new Award# Pun3ab

has "i(en up 1.& percent# -indh 0.L> percent and Qh%ber

Pakhtunkhwa 0.&? percent2 while the pro(ince of alochistan has

"ained 1.K& percent. ederation sacri$ced more than 10 percent of its

share to pro(inces.

It is interested to know the formula adopted for P awards. !here isno similar formula adopted b% pro(inces. !he onl% wei"htin" indicator

which is common amon" all pro(inces is population but its wei"ht is

di*erent. Pun3ab "rants maimum wei"ht of percent to population

in its award while all other pro(inces "i(e 0 percent to it.

ackwardness and po(ert% is not considered in alochistan# whereas# it

is "i(en &# 1.# and 10 percent wei"ht b% QPQ# -indh# and Pun3ab

pro(inces# respecti(el%. alochistan consider onl% population and area

and "rant e5ual share in it award. !a e*orts b% district are "ranted .

and percent share b% -indh and Pun3ab pro(inces. In order to de(elop

under de(eloped districts QPQ and Pun3ab "rant & and percentshare# respecti(el%.

!he criteria used for $nancial distribution (aries from re"ion to re"ion

and countr% to countr%# it is not $ed and also (aries o(er time.

Population remains as one of the ma3or indicator for distribution.

-i"ni$cant wei"ht was "i(en to income distribution in India but



population wei"ht is also "i(en in it. In 10th Indian inancial award <IA=

$scal disciple was not "i(en an% wei"ht while it was e5uall% considered

in their 11th and 1&th awards. -imilarl%# inde of infrastructure was

considered in 1&th I award. !herefore# there is no $ formula or

indicators# the most importance thin" is consensus amon" the states

or all stake holders and adoptin" the fundamental principle of e5uit%

and e5ualit%.

)ote: !he abo(e material has been taken from man% online sources. -ome

of them include2

1. iscal ederalism in Pakistan' !he th ;ational inance ommission

Award and Its Implications# PID+ orkin" Papers &011' L b% @sman

Mustafa&.

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