Division of Powers in Pakistan (Federation vs. Provinces)

Upon independence in 1947, Pakistan adopted the Government of India Act 1935 (as amended by the Indian Independence Act 1947) as its interim constitution. This framework was highly centralized, reflecting British colonial administrative needs rather than a fully devolved federal structure.

The One Unit scheme merged the four provinces of West Pakistan into a single province. This was done to create political and administrative parity between the more populous East Pakistan (East Bengal) and the diverse provinces of West Pakistan, effectively creating a two-unit federation.

The 1956 Constitution provided for a three-list system: the Federal List (30 items), the Provincial List (94 items), and the Concurrent List (19 items). Residual powers, those not mentioned in any list, were vested in the provincial governments.

The 1962 Constitution, promulgated by Ayub Khan, was highly centralized. It only specified a Federal List of 49 items. Matters not in that list were considered provincial, but the central government maintained significant control through the presidential system and the appointment of governors.

The 1973 Constitution followed the principle of federalism where specific powers were granted to the center, and all remaining (residual) powers were granted to the provinces. This was intended to ensure a degree of provincial autonomy from the outset.

The 18th Amendment abolished the Concurrent Legislative List, which contained 47 subjects. By removing this list, the provinces gained exclusive legislative and executive authority over those subjects, including health, education, and labor, significantly enhancing provincial autonomy.

The 18th Amendment revitalized the Council of Common Interests (CCI). It mandated that the CCI meet at least once every 90 days and gave it authority over subjects in the Federal Legislative List Part II, making it a critical hub for inter-provincial and federal-provincial coordination.

With the abolition of the Concurrent List, sectors such as Health, Education, Environment, and Labor were fully devolved to the provinces. This shifted the responsibility for service delivery and policy-making in these areas from the federal to the provincial level.

The NFC is a constitutional body (Article 160) responsible for recommending the distribution of resources from the 'Divisible Pool' of taxes between the federal government and the four provinces (vertical distribution) and among the provinces themselves (horizontal distribution).

Before 2010, the horizontal distribution was based solely on population. The 7th NFC Award added three new criteria: Poverty/Backwardness (10.3%), Revenue Collection/Generation (5%), and Inverse Population Density (2.7%). Literacy rate is not used as a criterion for resource distribution.

Added via the 18th Amendment, Article 160 (3A) prevents the federal government from reducing the provincial share of the divisible pool below the percentage established in the previous award. This provides fiscal security to the provinces and ensures that devolution remains financially viable.

Despite the introduction of multi-criteria, population remains the most heavily weighted factor (82%). Because Punjab is the most populous province, it continues to receive the largest share of the divisible pool, followed by Sindh, KP, and Balochistan.

The Federal Legislative List is divided into Part I (subjects handled exclusively by the Federal Government) and Part II (subjects over which the Council of Common Interests has policy control). The 18th Amendment moved several key subjects from the Concurrent List into Part II.

According to Article 153, the Prime Minister is the chairperson of the CCI. The council also includes the Chief Ministers of the four provinces and three members from the Federal Cabinet nominated by the Prime Minister.

Sindh was the pioneer in asserting its constitutional right to collect Sales Tax on Services by establishing the Sindh Revenue Board (SRB). This move significantly increased the province's own-source revenue and was later followed by the other provinces (e.g., PRA in Punjab).

The Government of India Act 1935 was the first to formally introduce 'Provincial Autonomy' by ending the dyarchy system in provinces and providing a clear division of powers through federal, provincial, and concurrent lists, which became the blueprint for Pakistan's later constitutions.

Vertical distribution refers to the percentage of the 'Divisible Pool' that is kept by the Federal Government versus the percentage that is distributed to the provinces collectively. In the 7th NFC, the provinces' vertical share was increased to 57.5%.

The 25th Amendment, passed in 2018, was a major structural change in Pakistan's federation. it merged FATA into the province of Khyber Pakhtunkhwa, bringing the tribal areas into the mainstream legal and political framework of the province.

While the 1962 Constitution was centralized, Article 132 stated that the Provincial Legislature had power to make laws with respect to any matter other than those enumerated in the Central List. However, central overriding powers made this autonomy largely theoretical.

Electricity is listed in Part II of the Federal Legislative List. This means that while the Federal Government handles it, the policies must be regulated and formulated by the Council of Common Interests, where provinces have a say.