Re: The Ultimate Losers in Pakistan!
For those interested in learning more..feel free to read 
President General Pervez Musharraf has recently made bold comments on the National Finance Commission (NFC) Award, provincial autonomy and the Balochistan issues. He suggested that the NFC Award should divide the resources between the federal government and the federating units a on a 50:50 basis, and the concurrent list of the subjects in the constitution should be abolished to enhance provincial autonomy. He also outlined the measures the federal government was taking to resolve the current problem in Balochistan and declared that there would be no military action there. Pointing to the existence of “war lords” in Balochistan, he said that the government would ensure its writ there. He also admitted that the presidency was in indirect contact with Benazir Bhutto on political issues.
These statements reflect a positive and accommodating disposition. This also shows, once again, that when it comes to key and contentious policy issues the president rather than the prime minister calls the shots. This is a manifestation of the political reality. But it reflects poorly on the civilian political infrastructure established by Musharraf in October-November 2002. If we examine this against the backdrop of the president’s decision to hold on to the post of army chief, the inescapable conclusion is that he neither relies on the civilian institutions for his political survival nor lets them take the leading role with reference to key issue that have implications for the direction of the polity. The civilian government functions within a specified domain and has the responsibility for managing the day-to-day affairs, including the economic matters, and making input to the formulation of policy guidelines and political parameters by the presidency.
The president’s proposal that the NFC should settle on parity between the provinces and the federal government is an endorsement of the provinces’ demand. The issue has been pending since 2002 when the regular term of the 1997 Award expired. During 2003-4, the NFC held several meetings but the federal government and the provinces could not develop consensus on the formula for division of the federal divisible pool of revenue. The federal government wanted to keep more than 50 per cent with itself. It offered 45-47 percent to the provinces which was not acceptable to them. Now, after dragging its feet for almost a year, the federal government seems likely to accept the 50:50 formula because of the president’s endorsement. It may be pointed out that there was a time when the provinces used to get over 60 percent of the federal divisible pool of revenue. But then the federal government expanded its administrative empire and the provinces had to face the resource crunch.
The president has avoided talking about a more contentious issue pertaining to the NFC Award. It is the criterion for distribution of resources among the provinces. In the past, Pakistan adopted the population criterion. This favoured the most populous province — the Punjab. The smaller provinces have argued that population should not be the only basis for division of resources. They want other factors taken into account. Sindh wants revenue collection to be assigned some weight; Balochistan talks of the area and development needs and the NFWP highlights needs as well as the peculiar circumstances of a province. The Punjab is favourably disposed towards the continuation of the population formula. The provinces have to agree among themselves on the criteria and the federal government should accommodate that formula. It can be argued that population should not be the only basis for division of resources. Considerations like poverty, under-development and special circumstances should be given weight. Furthermore, the revenue collection powers of the provinces should be enhanced in order to reduce their dependence on the NFC Award and the federal government.
The president has favoured autonomy for the provinces but he presides over a highly centralised political and administrative system. The notion of the unity of command, as advocated by the president, negates provincial autonomy. At the operational level the provinces do not currently enjoy the autonomy promised to them in the constitution. The federal government needs to trim its size by returning the power and authority to the provinces over the subjects that do not belong to it. The president can order a review of the administrative bulge of the federal government to give credibility to his statement. This can be followed up by setting up a parliamentary committee to review the concurrent list for transferring most of its subjects to the provinces.
** The relationship between the federation and the federating units is not a zero-sum process. The transfer of some administrative and financial powers to the provinces does not weaken the federal government. Rather, it helps promote mutual trust and genuine partnership. What Pakistan needs is a change in the mindset of those who control power in Islamabad. **
Balochistan’s troubled situation is evidence of the federal government’s neglect of the concerns and fears of the aspirant political elite in that province who feel excluded from the far-reaching changes the federal government is making in the province. The federal government’s self-ascribed mission of development of Balochistan and the aura of self-righteousness need to be moderated by participatory imperatives and the perceptions of those who refuse to hitch on the official bandwagon.
** Balochistan’s provincial government and the assembly have little, if anything, to do with the mega development projects. It is therefore not surprising that most of those associated with the official circles are avoiding identification with the policies of the federal government or extending reluctant support. The growing alienation has enabled the younger and more vocal elements to overcome their ideological differences with the Baloch chieftains whose politico-economic agenda they may not share. It is a kind of “united front” situation vis-à-vis the federal government which has neutralised the president’s description of sardars as warlords. **
The outcome of the Balochistan situation depends on a several factors. How quickly the federal government adopts measures to accommodate the political elements who question its policies, is one. The on-going mega projects should be reviewed with the objective of improving economic opportunities for the local people. The land allotments/sales in the Gwadar area should be made transparent. An inquiry into this process should be conducted to inform the parliament as to who are the major beneficiaries of land development and real-estate business in Gwadar. Furthermore, justice should be seen is being done in the raped doctor’s case. High officials should not issue statements that create the impression of protecting somebody. DailyTimes