ISLAMABAD: The Supreme Court issued notices to the Attorney General for Pakistan and the advocate generals of all the provinces for the devolution of financial authority and power to the Local Governments.
A three-judge bench, headed by Justice Umar Ata Bandial, on Friday heard the petition of former Punjab provincial minister Manawar Ahmed.
Justice Ata Bandial said they would examine the case in light of the constitution. Faisal Chaudhry, representing the petitioner, argued that there is no formula regarding the distribution of development funds to the districts.
He said under Article 140A of the Constitution each province shall, by law, establish a local government system and devolve political, administrative and financial responsibility and authority to the elected representatives of the local governments.
Chaudhry argued that though the provinces receive the funds from the Centre, under the Financial National Commission Award, but do not provide to the local governments. He said under Article 156 of the Constitution, the president is mandated to constitute a National Economic Council (NEC) comprising the prime minister and the chief ministers of all the provinces.
He contended that the NEC is an important constitutional body mandated to review the overall economic condition of the country, formulate plans in respect of the financial, commercial, social, and economic policies, and in formulating such plan it shall, among other factors, ensure balanced development and regional equity and shall also be guided by the principles of policy set out in Chapter 2 part-II of the Constitution.
He said the meeting of the NEC is required to be held at least twice a year and is also responsible to submit an annual report to each House of the Parliament i.e. the National Assembly and the Senate.
He contended that there is mention of the NFC Award but not of Provincial Financial Commission Award.
He said since the 18th constitutional amendment, the Chief Minister Office has become powerful, adding now the provincial funds for the districts are at the discretion of the chief minister.
Justice Bandial remarked that if the chief minister is not equally distributing funds to the districts then they should approach the NFC.
Chaudhry said it is demanded that the funds among districts by the province should be distributed according to the provincial financial commission.
The counsel said that the petitioner has collected the data of all the four provinces and made it a part of this petition of national significance and importance. He also urged that the local government is the third tier of the State in terms of the definition of State provided for in Article 7.
The court questioned the third tier of the State has not been made party of the proceeding, which, according to him, is the most deprived when it comes to the distribution of the financial collection by the State. The counsel stated that such local government shall be added as the party to the proceeding provided this application is entertained and fixed in Court for consideration.
The bench noted that the question raised as to the implementation of the constitutional mandate is an obligation of each organ of the State in terms of Article 5 of the Constitution.
It said that the financial rights and interests of each citizen are involved and warrant consideration by the Court.
Copyright Business Recorder, 2021
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