No (Inter-provincial) consensus
Monday, May 25, 2009
Editorial, Dawn, Pakistan
Monday, 25 May, 2009
ON Friday, Sardar Assef Ahmed Ali, deputy chairman of the Planning Commission of Pakistan, told the media in Islamabad that the controversial Kalabagh dam remained on the list of key water and power projects. The dam had been announced as scrapped by the water and power minister shortly after the inauguration of the new government last year because of the opposition to the project by the smaller provinces. Now we are told that the dam would be built but only after the removal of objections. There appears to be little likelihood of consensus on this issue in the foreseeable future. The Musharraf government’s effort to build consensus on the project boomeranged and the three small provinces passed resolutions against it in their assemblies. In Sindh, for the past 16 years, the Thar coal project has also been subjected to delays. But here, the delay has been caused by a dispute between Islamabad and Karachi over the managing rights. The good news is that the president is trying to find a middle way to kick off work on the project that promises the country pure gold: 10,000 megawatts of electricity.
The dispute over the two projects considered crucial for cheap energy production and water storage for agriculture is indicative of the deeper, long-standing issue of provincial autonomy. The 1973 Constitution, and other previous documents for that matter, allow free inter-provincial movement of labour, goods and services — although Punjab sometimes tends to curb wheat movement out of its territory — which have largely fostered a ‘common economic market’ in the country. This generally free movement is a remarkable achievement given the tensions such an issue can generate and has done so all over the world. On the other hand, the centre seeks to maintain its control on many subjects that should have long been transferred to the provinces. Besides, the smaller provinces suspect the centre is tilted towards protecting the rights of Punjab. Working against the federation as these suspicions do, they also jeopardise collective economic interests. The controversy over Kalabagh dam and the dispute over the Thar coal project are just two examples.
Inter-provincial disputes are hurting the country’s economic interests. The situation demands that the centre scrap the concurrent list as promised by the prime minister soon after he took oath. Punjab could also contribute to inter-provincial harmony by supporting the smaller provinces’ demand to change the formula for inter-provincial distribution of funds under the National Finance Commission. It could make up for its loss on account of the changed formula by convincing Islamabad to substantially increase the provincial share from the divisible tax pool and hand over revenue-generating provincial sales tax on services to the provinces. If it does so, Punjab will find the smaller provinces supporting it.
Source
Monday, 25 May, 2009
ON Friday, Sardar Assef Ahmed Ali, deputy chairman of the Planning Commission of Pakistan, told the media in Islamabad that the controversial Kalabagh dam remained on the list of key water and power projects. The dam had been announced as scrapped by the water and power minister shortly after the inauguration of the new government last year because of the opposition to the project by the smaller provinces. Now we are told that the dam would be built but only after the removal of objections. There appears to be little likelihood of consensus on this issue in the foreseeable future. The Musharraf government’s effort to build consensus on the project boomeranged and the three small provinces passed resolutions against it in their assemblies. In Sindh, for the past 16 years, the Thar coal project has also been subjected to delays. But here, the delay has been caused by a dispute between Islamabad and Karachi over the managing rights. The good news is that the president is trying to find a middle way to kick off work on the project that promises the country pure gold: 10,000 megawatts of electricity.
The dispute over the two projects considered crucial for cheap energy production and water storage for agriculture is indicative of the deeper, long-standing issue of provincial autonomy. The 1973 Constitution, and other previous documents for that matter, allow free inter-provincial movement of labour, goods and services — although Punjab sometimes tends to curb wheat movement out of its territory — which have largely fostered a ‘common economic market’ in the country. This generally free movement is a remarkable achievement given the tensions such an issue can generate and has done so all over the world. On the other hand, the centre seeks to maintain its control on many subjects that should have long been transferred to the provinces. Besides, the smaller provinces suspect the centre is tilted towards protecting the rights of Punjab. Working against the federation as these suspicions do, they also jeopardise collective economic interests. The controversy over Kalabagh dam and the dispute over the Thar coal project are just two examples.
Inter-provincial disputes are hurting the country’s economic interests. The situation demands that the centre scrap the concurrent list as promised by the prime minister soon after he took oath. Punjab could also contribute to inter-provincial harmony by supporting the smaller provinces’ demand to change the formula for inter-provincial distribution of funds under the National Finance Commission. It could make up for its loss on account of the changed formula by convincing Islamabad to substantially increase the provincial share from the divisible tax pool and hand over revenue-generating provincial sales tax on services to the provinces. If it does so, Punjab will find the smaller provinces supporting it.
Source
Labels: Economy, Inter-provincial Disputes, Kalabagh Dam, Thar Coal Project
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