Distribution of profits from natural resources

15 Mar, 2010

In states with the federal form of government, provinces claim political primacy, as it is they who consciously decide to form the state, unlike the unity states where the constituting units come into being and exit essentially in line with administrative requirements. Pakistan was created as a federal state and it remains so.
But the colonial legacy of a strong centre never allowed the successive constitutions to precipitate the true spirit of federalism. Naturally, our polity could never rid itself of the lingering complaints of the smaller units, of not getting their share commensurate with their contributions to the federal exchequer. There is a whole list of such claims, some drawing sustenance from the river waters and others from the mineral resources, the agricultural potential or revenue collection.
No doubt the Constitution does contain provisions that protect the rights and aspirations of the provinces. But as the political situation in the country tends to evolve, particularly since the high-handedness of the Musharraf regime, which came into full play in Balochistan with the assassination of Nawab Akbar Khan Bugti, the issue of provincial autonomy has come to the fore as one of major challenges confronting the present government. Quite expectedly then, the issue of provincial autonomy engaged serious attention of the Parliamentary Committee for Constitutional reforms and what has reportedly emerged as its consensual proposal is quite dramatic.
According to reports, based on a press conference given by the chairman of the said committee, Senator Raza Rabbani, and some other unidentified members, Articles 158 and 172 shall be amended, which will drastically restructure the stakes of the Centre and the provinces in the distribution of profits from the exploitation of natural resources - on-surface, below-surface and off-shore. To Article 172 a sub-clause, 172(3), is being added, to give effect to the proposed sharing - reported to be 50-50 - between the federal and provincial governments, in profits from gas and oil ventures and other mineral exploiting projects within 12 nautical miles.
But this would not disturb the existing agreements. The long Mekran coast and the vast continental shelf at the mouth of River Indus are believed to be rich in energy sources but their full exploitation has been held hostage to differing claims, a la Sonmiani sands. But with the adoption of Article 172 (3) as part of the 18th Amendment, the field will become open for joint ventures and foreign investors.
Meanwhile, the Council of Common Interests (CCI) is being equipped with adequate political courage and administrative tools to take decisions on all matters relating to provincial autonomy in the Federal Legislative List, Part II. But as a matter of policy, the momentum for change will build up slowly, gradually moving from the soft to hard issues. Contentious issues like building and running new ports, insurance business, research in science and technology, national highways and strategic roads, taxes on sale and purchase of goods imported and exported, and terminal taxes on goods and passengers carried by railways, sea and air and taxes on their fares and freights, however, are still unresolved.
The committee, indeed, has an extremely tough work to do in the next few days - because according to latest reports, President Zardari is going to address the joint session of Parliament on March 25, when the committee's work - having been approved by the Cabinet by then - must be ready for presentation for a parliamentary debate.

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