Article Type

Article

Description

The recent moves to devolve some of the functions and responsibilities of the federal government to the provinces through the 18th Amendment and the decision of the National Finance Commission (NFC) to allocate a larger portion of divisible tax pool to the provinces are highly commendable. These steps have the potential to overcome some of the structural difficulties and micro-economic distortions that have been keeping Pakistan as an underachiever economically and socially. In a multi-ethnic and multi-linguistic society, with one of the federating units being much advanced and enjoying political dominance, de-concentration of powers and equitable sharing of resources among provinces makes perfect sense. Just like competitive markets allow decentralised decision making to unleash entrepreneurial energies and economic growth, devolved units of state should be able to ensure judicious and equitable distribution of economic gains.

Publication Source

The News

Publication Date

7-25-2011

Pages

1-3

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