Web Desk: Senate committee said on Friday that the federal government could save between Rs4 trillion and Rs5 trillion ($14 billion-$18 billion) annually by abolishing unnecessary ministries and reducing administrative expenditures, while urging full implementation of constitutional provisions governing federal-provincial relations.
The Senate Functional Committee on Devolution, chaired by Senator Zamir Hussain, reviewed the implementation of the 18th Constitutional Amendment, which devolved several powers from the federal government to the provinces. Lawmakers also examined proposals to reorganize the federal government, reduce the number of ministries and limit the federation’s role to responsibilities defined under the Constitution.
Committee members said the federal government should operate within its constitutional mandate and eliminate overlapping departments to cut costs. They argued that streamlining ministries and reducing duplicate institutions could generate annual savings of Rs4 trillion to Rs5 trillion.
The committee also called for the effective functioning of constitutional bodies, particularly the Council of Common Interests (CCI), saying its constitutional role and authority should be fully implemented.
Senator Jan Muhammad Baloch said delays in convening CCI meetings were undermining constitutional requirements. He added that Pakistan needed significant reductions in government spending to address its financial challenges and lessen dependence on International Monetary Fund (IMF) support.
He urged the government to review federal expenditures and ministries while ensuring that constitutional institutions, including the National Finance Commission (NFC) and the CCI, function effectively.
Committee members agreed that strengthening constitutional institutions would help resolve several long-standing issues between the federation and the provinces.
Chairman Zamir Hussain criticised what he described as the federal government’s failure to transfer constitutionally mandated shares of oil and gas revenues to producing provinces.
He said Sindh produces oil worth around Rs3.7 billion daily, while Khyber Pakhtunkhwa accounts for about 42% of the country’s oil production. Despite that, he claimed oil- and gas-producing provinces had not received their due share for the past 16 years.
Hussain said companies and corporations continued to earn profits while local populations remained deprived of the benefits of natural resources. He questioned why the federal government had not transferred payments to the provinces, describing the issue as poor governance and accusing the government of failing to fully implement the 18th Constitutional Amendment.
During the meeting, the committee reviewed a report on appointments related to the implementation of Article 38(g) of the Constitution. The Ministry of Petroleum also briefed lawmakers on the implementation of Article 172(3), which governs ownership and management of certain natural resources.
The committee’s conveners said every institution should fulfill its constitutional responsibilities and ensure full compliance with the Constitution.
They also described the failure to provide oil- and gas-producing provinces with their constitutional share as a serious violation, adding that Sindh and Khyber Pakhtunkhwa had been deprived of benefits generated from natural resources.
The committee expressed concern over the lack of representation from oil- and gas-producing regions in relevant institutions. It directed the authorities to provide detailed information on revenues generated from the country’s oil and gas sector.
Lawmakers also stressed that protecting provincial constitutional rights was essential for a strong federation. They warned that failure to implement constitutional provisions could fuel political and administrative disputes.
The committee further recommended a comprehensive review of duplicate departments and unnecessary government expenditures, saying reducing wasteful spending would help preserve national resources.
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