Beyond provincial monopolies
Professor Ahsan Iqbal's recent article, "Competitive Federalism or Centralised Provincial Monopolies?", has rekindled an important debate on federalism and governance in Pakistan. He rightly describes the 18th Constitutional Amendment as one of the most consequential democratic reforms in Pakistan's constitutional history. By devolving seventeen major subjects from the federation to the provinces, the amendment sought to correct decades of over-centralisation and strengthen the federation through the principle of subsidiarity - that governance should operate at the lowest effective level closest to citizens.
Professor Iqbal's central argument is that while provinces demanded decentralisation from Islamabad, they have themselves become centralised entities by failing to devolve authority and financial resources to local governments. He contends that this contradiction has weakened the true spirit of the 18th Amendment and suppressed the competitive dynamics that drive innovation, efficiency and responsiveness in modern states.
The concern regarding weak local governments is valid. Effective local governance remains one of Pakistan's most neglected areas. Yet the broader conclusion that provincial autonomy is primarily responsible for governance shortcomings requires a more careful assessment of constitutional history, fiscal realities and institutional performance.
The first point often overlooked is that fiscal federalism in Pakistan did not begin with the 18th Amendment. Article 160 of the Constitution, governing the NFC, was incorporated in the original Constitution of 1973 through national consensus. Likewise, the landmark 7th NFC Award was agreed before the passage of the 18th Amendment in 2010. The constitutional principle of provincial empowerment therefore predates the amendment itself.
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