News Analysis: Time to revisit 18th Amendment?

In 1972, President Zulfikar Ali Bhutto formed a committee of experts to prepare a draft constitution. Justice A R Cornelius headed the committee, including politicians and legal scholars. In February 1973, after working for several months, the committee submitted its draft to the National Assembly. The National Assembly debated the draft for three months. On April 10, 1973, the National Assembly finally passed the Constitution of Pakistan with 280 articles, 7 schedules, 4 parts and 12 chapters.

In 2009, a parliamentary committee was formed to propose changes to the 1973 Constitution. In March 2010, the parliamentary committee,

after several in-camera meetings, submitted its recommendations to the National Assembly. Lo and behold, after several in-camera sessions, the 18th Amendment to the Constitution of Pakistan was passed by the National Assembly on April 8, 2010. In all, 102 amendments to the original 280 articles received the assent of the president on April 19, 2010. Imagine: more than one-third of the Constitution was amended.

The 18th Amendment “required that the provinces’ share shall not be less than what they decided in 2009 NFC Award ie 57.5 percent of the divisible pool.”

Fast forward to Budget 2022-23. Under the Budget 2022-23, FBR Tax Revenue were estimated at Rs7.4 trillion of which Rs4.2 trillion or 57 percent were allocated to the provinces. The federal government is left with Rs3.2 trillion. Budget 2022-23 has Rs1.9 trillion as Non-Tax Revenue. The bottom line is that the federal government is left with Rs5.1 trillion while debt servicing this year is expected to hit Rs5.5 trillion. As a consequence, there’s nothing left for defence (Rs1.5 trillion), the public sector development programme (Rs871 billion), running of the civil government (Rs553 billion), pensions (Rs609 billion), subsidies (Rs664 billion) and grants (Rs1.1 trillion).

For the record, the defence allocation of Rs1.5 trillion is to defend the whole country -- not just Islamabad. Similarly, the debt servicing of Rs5.5 trillion services the debt taken on by the whole country -- not just Islamabad. Without a doubt, the financial provisions of the 18th Amendment are entirely unsustainable. For the record, the amendment has weakened the Centre without strengthening the provinces. Plus, the 18th Amendment has introduced an inbuilt inefficiency on the part of provincial administrations.

The purpose of amending a constitution is to adapt to the changing needs of society. These objectives may include enhancing the governance structure, guaranteeing fundamental rights, creating effective institutions, and addressing any deficiencies in the original constitution.

Two important questions arise in this context: Has the 18th Amendment improved our governance structure? Has it established any effective institution? Has the 18th Amendment corrected any errors? Has the 18th Amendment clarified any ambiguities in the original constitution?

Undoubtedly, the 18th Amendment has had a detrimental effect on the state’s strength, and it has been a primary factor contributing to the federal government’s significant financial difficulties. We require a new formula that can incentivize both the central government and provinces to put forth their utmost effort to generate resources optimally. The new formula must be ‘research-backed and non-partisan’. The new formula must guarantee spending efficiency, leading to the achievement of the highest possible level of shared prosperity.