FINANCIAL AUTHORIZATION OF PROVINCES UNDER 18TH
CONSTITUTIONAL AMENDMENT IN PAKISTAN: A CASE STUDY OF THE 7TH NFC (NATIONAL FINANCE COMMISSION) AWARD
Since inception, Pakistan is having a federal democracy. Provinces are authorized in the important subjects with regard to public services of the economy including security and law making at Provincial level. The first part of the paper briefly discusses the 18th amendment which was incorporated by the National Assembly of Pakistan on 8th April 2010. The amendment has not only brought major changes in the constitution of 1973 but has redefined the correlation between the two significant tiers of the governments. Central government was entrusted with the domains such as defense, currency and foreign affairs etc. while all the residuary powers were given to the Provinces. The second part of the paper primarily focuses the empowerment of the provinces in terms of financial matters under 7th NFC Award. Pakistan has designed an elegant fiscal arrangement under National Finance Commission (NFC) which has chalked out the procedure for distribution of national revenue between the federal government and the governments of federating units. Along with the comparison of previous six NFC awards this paper briefly discusses the need and importance of the 7th NFC Award. Similarly the challenges faced by the federal and provincial governments are discussed in detail