Institutional Analysis of Council of Common Interests (CCI)

Institutional Analysis of Council of Common Interests

(CCI)

A Guide for Functionaries

Ahmad Mehmood Zahid

Institutional Analysis of Council of Common Interests

(CCI)

A Guide for Functionaries

Ahmad Mehmood Zahid

Cont ent s

Preface (i)

Executive Summary 01

Chapter – 1Council of Common Interests: Historical Overview 07

Chapter – 2Council of Common Interests: Pre-18th Amendment Scenario 15

Chapter – 3Council of Common Interests: Post- 18th Amendment Scenario 25

Chapter – 4Amended Council of Common Interests: An Appraisal 39

Chapter – 5Conclusions 47

AnnexuresAnnex A. Excerpts from the Constitution of the Islamic Republic of Pakistan, 1956 51Annex B. Excerpts from the Constitution of the Islamic Republic of Pakistan, 1962 55Annex C. Excerpts from the Constitution of the Islamic Republic of Pakistan, 1973 59Annex D. Excerpts from the Rules of Business, 1973 63Annex E. Rules of Procedure of CCI, 1991 65Annex F. Composition of CCI (1973 – 2006) 71Annex G. Rules of Procedure of CCI, 2010 77

Institutional Analysis of

Council of Common Interests (CCI)

Preface

In the scheme of Pakistani federalism the Council of Common Interests (CCI) was created in 1973 to harmonize federal-provincial relations and conform to the spirit of federalism. It was a new approach towards addressing federal-provincial issues after bitter experiences of One Unit characterized by a highly centralized decision making and denial of provincial rights that resulted in East Pakistan tragedy in 1971. Even after this tragic episode the Pakistani federal experience had been characterized by continued conflicts and crisis between the federation and provinces for greater autonomy and control over natural resources. It is in this context that the 18th Constitutional Amendment has tried to reform and restructure the CCI to promote a culture of participatory federalism.

The 18th Amendment has introduced two major steps: (i) expanding the scope of Federal Legislative List-II and (ii) revitalizing the composition of the Council of Common Interests

i(CCI). In the new scenario the Council has emerged as one of the most important forums in the federal institutional framework. It is envisaged to become an effective dispute resolution, economic planning and development forum to further the cause of

iiparticipatory federalism.

Since its creation in 1973 the CCI had been a less utilized constitutional body. Before the Constitution and institutions flowing out of it could have solved federal-provincial issues, it was put in abeyance in 1977 by imposing martial law, and in 1985 through the 8th Amendment its federal spirit was changed. In 1999, it was again put in abeyance, and in 2003 vide the 17th Amendment it was given a quasi-presidential form. Thus in absence of constitutionality the CCI remained a dormant body. During 37-year of its existence since its inception in 1973 to 2010, it could meet only for 11 times. In absence of any proper secretariat of the CCI it is difficult to find any well documented institutional memory.

After the 18th Constitutional Amendment in April 2010 the CCI has held 13 meetings till December 2013 and taken up dozens of issues of federal-provincial importance. This explains the increasing efficacy of the CCI and functionality of the notion of 'shared responsibilities' after the 18th Amendment. The rationale of the CCI is anchored in a federal concept of Inter-Governmental Relations. It is a distinct feature of twenty eight federally organized countries in the world that have at least two or more tiers of constitutionally defined governments on same set of population and territory. For smooth functioning of each tier within their constitutionally defined competences a substantial level of interaction and cooperation is of vital importance. The mechanisms for managing such coordination, communication, cooperation and conflict resolution are varied. In federalism discourse

iiithese methods are often described as 'Inter-Governmental Relations (IGR)’.

(i)



In Pakistan an equivalent expression that figures in the Constitution is 'Inter-Provincial ivCoordination (IPC).’ The Article 130 of Constitution of 1956 provided for Inter-Provincial

Council. The Constitution of 1962 totally ignored the need of any such forum and refrained vfrom the very use of the word 'federal.' In the ‘federalism phase’ the Constitution of 1973

vicreated the Council of Common Interests (CCI) to ‘conform to the spirit of federalism.’ Composition of the CCI had been and till today have an equal representation of the federal and four provinces. The creation of the Council was a progressive leap forward along with establishment of the Senate as the territorial chamber.

Centre for Civic Education Pakistan with support from United Nations Development Program has attempted to develop this institutional analysis of the CCI. Mr. Ahmad Mehmood Zahid, former Federal secretary, Inter-Provincial Coordination, needs to be recognized for his extensive research and authoring this valuable analysis. We hope that the readers and users of this publication will find it beneficial to understand the promise and potential of the CCI.

Zafarullah KhanExecutive Director

Centre for Civic Education PakistanDecember 30, 2013

iRabbani, Mian Raza, A Biography of Pakistani Federalism: Unity in diversity, Islamabad 2012, p. 172iiIbidiiiChattopadhyay, Rupak and Nernberg, Karl (ed), Dialogues on Inter Government Relations in Federal Systems, Forum of Federations 2010 p.3ivEntry 13 of Federal Legislative List-II in Fourth Schedule, The Constitution of the Islamic Republic of Pakistan 1973vWaseem, Mohammad, Federalism in Pakistan, Forum of Federations 2010 URL:http://www.forumfed.org/pubs/Waseem-Fed-Overview.pdfviAhmed, Syed Jaffar, Council of Common Interests, Forum of Federations 2011 p.12

(ii)


Council of Common Interests (CCI) 01

Executive Summary

The Council of Common Interests (CCI) was created after the promulgation of the

1973 Constitution of Pakistan. The various dimensions of functioning of the Council

including its membership and rules of engagement were covered in various clauses

of the said constitution.

Article 154 of the Constitution authorized the CCI to formulate and implement policies on matters covered in Part-II of the Federal Legislative List (FLL). The Council also had jurisdiction in the matters pertaining to electricity (entry 34 of erstwhile Concurrent Legislative List (CLL) in so far as it was in relation to the affairs of the Federation.

The 1973 Constitution made CCI accountable to the parliament empowering it to amend any aspect of functioning of the CCI . The latter could by law frame the rules of procedure for the Council. Parliament could, in its joint session issue general or specific directions to the Council. It was also authorized to hear the references of the Federal or the Provincial Governments against the decision of the Council.

After a wait of thirty seven years, the federal provisions of the 1973 Constitution were amended when the 18th Amendment came into force in 2010. Prior to the passage of this amendment, only eleven meetings of CCI had been held where forty four items pertaining to center-province relations were discussed. The Council first framed its own Rules of Procedure in 1991 i.e. fourteen years after its inception.

Since the creation of CCI, the Parliament has not framed any law regarding rules of procedure and functioning of the Council. Moreover, neither the Parliament nor the Government (Federal or Provincial) gave any general or specific direction to the Council. The governments have also never questioned any decisions of the CCI by making reference to the Parliament.

After a hiatus of thirty seven years, significant changes were made to the composition, role and responsibilities of the Council. These amendments will be discussed in subsequent paragraphs.

The CCI is now chaired by the Prime Minister. Previously any Federal Minister could be nominated by the President to be the chairman of the Council. [Article 153(2)]

Since its founding, the CCI has been accountable to the Parliament. However, the


Council of Common Interests (CCI)02

modalities and operationalization of this accountability were never clearly stated in the Constitution. The 18th Amendment directed the Council to submit annual reports to both houses of Parliament. [Article 153(4)]

The 1973 Constitution authorized the President to appoint members of CCI without mentioning any time frame. Thus the President could delay setting up of CCI indefinitely. The 18th Amendment compelled the President to constitute the CCI within thirty days of the Prime Minister's oath of office. [Article 154(2)]

Clause 3 of Article 154 provided that the Council will have a permanent secretariat and hold meetings at least once in ninety days. But prior to the 18th Amendment, none of the above two conditions were there.

After the 18th Amendment the Prime Minister can now convene the meetings of the Council on the request of a province on an urgent matter.

The jurisdiction of CCI on disputes pertaining to water usage and sharing between provinces has been expanded. Complaints about interference with water supplies (earlier confined to 'natural source of supply') as well as supply from 'reservoir' can be brought to the CCI . [Article 155]

In case of any dispute between the Federal Government and a Provincial Government in respect of any matter under Article 157 (pertaining to electricity), any of the said Governments could move the Council for resolution of the dispute.

Following ten subjects were added to FLL Part-II, thereby enlarging the domain of the Council to formulate and regulate policies on these issues. These include: (1) Electricity; (2) The declaration and delimitation of major ports, and the constitution and

powers of port authorities therein;(3) All regulatory authorities established under Federal law;(4) National planning and economic coordination including planning for

scientific and technological research;(5) Supervision and management of public debt;(6) Census;(7) Extension in powers and jurisdiction of members of a provincial police

force to any area in another Province with the consent of the concerned government; extension of the powers and jurisdiction of members of a provincial police force to railway areas outside that Province;

(8) Legal, medical and other professions;(9) Standards in institutions for higher education and research including

scientific and technical institutions; (10) Inter-provincial matters and co-ordination



In the post-18th Amendment phase, thirteen meetings of the Council have been held (Between July 2010 and July 2013) where 76 agenda items were discussed by the Council.

Changes were required in the Rules of Procedure 1991 due to amendments in various Articles of the Constitution pertaining to its composition, mandate and meetings. The Council approved its new Rules of Procedure in July 2010 in its very first meeting after the passage of the 18th Amendment. New rules provide the procedure for meetings, submission of cases, record of proceedings and process for implementation of decisions. It could be argued that the formulation and regulation of policies and exercise of supervision and control over related institutions by the Council has taken away the powers of the Federal Government in the matters covered in the FLL Part-II. But the parliament still has the powers to legislate on all matters in the FLL whether these pertain to Part-I or Part-II. In view of this legal position, the executive authority of the Federation also extends to all matters covered in FLL, both in Part-I and Part-II. The scope and operationalization of CCI's powers in FLL Part-II is to be decided by the Council itself. No other institution can interfere in this matter. Both the CCI and Federal Government have never raised any concerns about the modalities of sharing of powers between them.

03

Council of Common Interests: Historical Overview

CHAPTER 1



Introduction

In this chapter, we will examine the various constitutions of Pakistan with reference to the question of federalism. We will briefly discuss the key provisions of all three constitutions looking at the nature of inter-governmental relations, dispute resolution mechanisms and participatory decision-making. 1. The CCI was first created under the 1973 Constitution. In an unprecedented

politico-legal measure, the Constitution established a forum for:-a) Participatory management by the federation and the federating unitsb) Inter-provincial coordination and ,c) Dispute resolution

2. Various aspects of composition, appointment and functioning of CCI are covered under various clauses and schedules of the 1973 Constitution.

3. The CCI is by far the most significant forum of inter-governmental coordination in the history of Pakistan. Similar forums that attempt to build trust and promote inter-provincial coordination in Pakistan include National Finance Commission (NFC) and the National Economic Council (NEC). Such institutions are essential remedies for settling formal disputes in federal structures. In line with the participatory spirit of the CCI, the 1973 Constitution took a step forward in enhancing the scope of provincial powers in Pakistan.

CCI through history

4. The 1956 Constitution was the first constitution of Pakistan. Prior to that the country was governed by the Government of India Act, 1935 and Indian Independence Act, 1947, inherited from the colonial period. These two sets of legislations aimed at strengthening the powers of the rulers thereby establishing a centralized structure of power. Real provincial autonomy at that time was only extended to the Governors' provinces.

The 1956 Constitution: Key provisionsInter-Governmental Fora

5. The Constitution of 1956, provided for the establishment of two inter- governmental fora, where both the federal and provincial governments were represented. These were the National Finance Commission (NFC) and the National Economic Council (NEC). The NFC was to be comprised of the federal finance minister as chair along with the provincial finance ministers and some other relevant officials who could only be appointed after consultation with the governors of the provinces. The Commission was assigned the task of making recommendations concerning the distribution between the federation and the provinces of the tax proceeds in the divisible pool and making of grants-in-aid by



the federal government to the provinces and exercise of the borrowing powers by the federal and provincial governments (Article 118) (Annex-A).

The National Economic Council obligated the President to constitute the Council consisting of four federal ministers, three ministers from each province and the Prime Minister who was to be the ex-officio chairman of the Council. The NEC was assigned the task of reviewing the overall economic position of the country and formulating plans in respect of financial, commercial and economic policies for advising the federal and provincial governments. (Article 199 Annex-A)

Dispute resolution

6. The 1956 Constitution also set in place dispute resolution mechanisms to settle any disagreements between and within central and provincial governments. Under Article 156 (Annex-A), the Supreme Court was endowed with “original jurisdiction in any dispute between __

a) the Federal Government and the Government of one or both Provinces ; or

b) the Federal Government and the Government of a Province on the one side , and the Government of the other Province on the other ; or

c) the Governments of the Provinces,if and so far as the dispute involves __

i) any question, whether of law or of fact, on which the existence or extent of a legal right depends; or

ii) any question as to the interpretation of the Constitution.2. The Supreme Court in the exercise of its above said original

jurisdiction shall not pronounce any judgment other than a 1declaratory judgment.”

7. Apart from the original jurisdiction of the Supreme Court, another dispute resolution process was given under Article 129 (Annex-A). This provided that:

“(1) any dispute between the Federal Government and one or both Provincial Governments, or between the two Provincial Governments, which under the law or the Constitution is not within the jurisdiction of the Supreme Court, may be referred by any of the Governments involved in the dispute to the Chief Justice of Pakistan, who shall appoint a tribunal to settle the dispute.

(2) Subject to the provisions of any Act of Parliament, the practice and procedure of any such tribunal, including the fees to be charged and the award of costs, shall be determined by rules made by the Supreme Court and approved by the President.

1The 1956 Constitution of Pakistan



(3) The report of the tribunal shall be forwarded to the Chief Justice, who shall determine whether the purpose for which the tribunal was appointed has been carried out, and shall return the report to the tribunal for re-consideration if he is of opinion that the purpose has not been carried out; and when the report is in order the Chief Justice shall forward the report to the President, who shall make such order as may be necessary to give effect to the report.

(4) Effect shall be given in a Province to any order made under this Article by the President, and any Act of the Provincial Legislature which is repugnant to the order shall, to the extent of the repugnancy, be void.

(5) An order by the President under this Article may be varied by the President 2in accordance with an agreement made by the parties concerned.”

Participatory management

8. The 1956 Constitution also laid down rules to promote coordination between center and provinces. Article 130 of the Constitution authorized the President to establish an Inter- Provincial Council if it appeared to serve the public interest. The said article stated that “If at any time it appears to the President that the public interest would be served by the establishment of an Inter-Provincial Council charged with the duty of (a) investigating and discussing subjects in which the Provinces, or the

Federation and one or both of the Provinces, have a common interest; or(b) making recommendations upon any such subject and, in particular,

recommendations for the better coordination of policy and action with respect to that subject,

the President may, with the consent of the Governors of the Provinces, establish such a Council and define the nature of the duties to be performed by it, and its

3organization and procedure.” 9. Concerning the question of provincial autonomy, the 1956 Constitution provided

three legislative lists outlining the distinct jurisdictions of federal and provincial governments. According to the Article 106, the Federal List included all the issues over which the federal government had the exclusive power to legislate. The Concurrent List covered all the subjects over which both federal and provincial legislatures could legislate and the Provincial List contained areas that were under the sole jurisdiction of Provincial Legislature. (Article 106 Annex A).

10. Having established the distinct legal and political domains for federal and provincial governments, the 1956 Constitution also dealt with the question of residual powers. According to Article 109 (Annex-A) the Residual Powers were given to the Provincial Governments. The Provincial legislatures had exclusive power to make laws with respect to any matter not enumerated in any of the

2The 1956 Constitution.3The 1956 Constitution.



above three lists.11. Under Article 200 of the Constitution of 1956 (Annex-A), the President could

appoint a Board for each Province, consisting of representatives of the Federal and Provincial Government(s) to advise the Federal Government on matters relating to Posts and Telegraphs (both Federal subjects) in the Province.

12. It took nine years for the first constitution of Pakistan to be framed but less than three years into its codification, it was abrogated in 1958. General Ayub Khan, who came into power as a result of the 1958 military coup promulgated a new constitution in 1962. This Constitution was presidential in form and had much lesser space for provincial autonomy.

The 1962 Constitution: Key provisionsProvincial autonomy

13. Article 131 (Annex-B) of the 1962 Constitution provided the Central Legislature with exclusive powers to make laws with respect to any matter enumerated in the Third Schedule thereof. Powers to legislate on residual matters was given to the Provincial Legislature under Article 132. However, the powers of Central Legislature were greatly enhanced at the expense of Provincial Legislatures under clause 2 of Article 131. Such was the broadened scope of the powers of Federal Legislature that it was empowered to make laws even on issues not covered in the Third Schedule.

14. The 1962 Constitution also granted special legislative powers to the Center in the name of national interest. According to Article 131 Clause (2), “where the national interest of Pakistan in relation to (a) the security of Pakistan, including the economic and financial stability of

Pakistan;(b) planning or co-ordination; or(c) the achievement of uniformity in respect of any matter in different parts of

Pakistan,so requires, the Central Legislature shall have power to make laws (including laws having extra-territorial operation) for the whole or any part of Pakistan with

respect to any matter not enumerated in the Third Schedule.”

Dispute resolution

15. On the question of settlement of any disputes between Center and provinces, the 1962 Constitution followed the trend established in the 1956 Constitution. The latter granted powers to the Supreme Court to adjudicate in such disputes. However the modalities of dispute resolution underwent certain changes. For example the setting up of a special tribunal by the Chief Justice of Pakistan under

4

4The 1962 Constitution of Pakistan.



Article 129 of the Constitution of 1956 (Annex-A) was done away with in the 1962 Constitution.

16. Another change in the 1962 Constitution pertained to the setting up of Inter-Provincial Council. Previously, Article 130 (Annex-A) gave the discretionary powers to the President to establish an Inter-Provincial Council with the consent of Governors. Although the President enjoyed complete autonomy in deciding the composition of the Inter-Provincial Council. This provision was no longer there in the 1962 Constitution.

Inter governmental fora

17. The 1962 Constitution continued the trend established by the 1956 Constitution concerning the functioning of NFC and NEC. NFC with its focus on making recommendations on financial resources distribution and NEC, assigned with the task of advising the Federal and Provincial Governments on formulation of plans with respect to financial, commercial and economic development were present in the 1962 Constitution. However, the composition of NEC, i.e. level of Federal and Provincial representation was not elaborated. Moreover, the President was given full authority to nominate the members of NEC. See Articles 144 and 145 of the Constitution of 1962 (Annex-B).

The 1973 Constitution: Key Provisions

18. 1973 Constitution was unique in the sense that it provided for: i) full autonomy to the Provinces in the matters assigned to them. These

powers could not be taken back by the Federal Government in the garb of national security, economic and financial stability, planning or coordination or achievement of uniformity in respect of any matter in different parts of Pakistan, as was the case under the 1962 Constitution.

ii) the composition of two Inter governmental fora i.e. NFC and NEC was given in the Constitution itself. It was no longer the prerogative of the President or Federal Government. This was specifically indicated in Articles 160 and 156 respectively (Annex-C),

iii) the method of resolution of disputes between any of two or more governments (Federal and/or Provincial) through the original jurisdiction of Supreme Court of Pakistan was provided in Article 184 (Annex-C),

iv) these created a special forum with the prescribed representation from Federal and/or Provincial Government for :a) participatory management by Federation and Provinces in purely

Federal matters,b) enhanced Inter-Provincial coordination,c) dispute resolution.

This chapter has briefly attempted to outline the various provisions of 1956, 1962



and 1973 Constitutions of Pakistan pertaining to the question of Center-Province relations. There appears to be clear continuity in certain matters in all three constitutions. However, the 1973 Constitution is by far the most generous document granting unprecedented powers to federal institutions like CCI.

Council of Common Interests: thPre- 18 Amendment Scenario

CHAPTER 2



This chapter will briefly trace the creation and functioning of Council of Common Interests since 1973. It will refer to constitutional provisions to highlight the roles and responsibilities set by the Constitution. The functioning of this key institution, including its shortcomings will also be discussed here.

1. The CCI from its creation in 1973 was a step ahead of the provincial autonomy laid out in the contemporary Constitutions in other federations.

Composition of the Council

2. According to the Article 153 (Annex-C) of the Constitution: (1). There shall be a Council of Common Interests, in this Chapter referred to as

the Council, to be appointed by the President.(2). The members of the Council shall be __

(a) the Chief Ministers of the Provinces, and(b) an equal number of members from the Federal Government to be

nominated by the Prime Minister from time to time.(3). The Prime Minister, if he is a member of the Council, shall be the Chairman

of the Council but, if at any time he is not a member, the President may nominate a Federal Minister who is a member of the Council to be its Chairman.

5(4). The Council shall be responsible to Parliament.”

Functions of the Council

3. Article 154 (Annex-C) of the 1973 Constitution provided that the Council shall formulate and regulate policies in relation to the matters in Part-II of the Federal Legislative List and shall exercise supervision and control over related institutions. The Council had similar jurisdiction in the matter of Electricity (Entry 34 of the Concurrent Legislative List), in so far as it was in relation to the affairs of the Federation.

4. The subject of Electricity, covered in the Concurrent Legislative List, became both a Federal as well as a Provincial subject. Article 157 (Annex-C), however separately defined the domain of Federal and Provincial Governments on the question of Electricity.

5. Further elaboration of Federal Government's powers in the domain of electricity generation is provided in Article 157. According to Clause (1) of the said Article, “the Federal Government may in any Province construct or cause to be constructed hydro-electric or thermal power installations or grid stations for the generation of electricity and lay or cause to be laid inter-Provincial transmission

6 lines.”

5The 1973 Constitution.6The 1973 Constitution.



6. Clause (2) of the Article 157 provided that “the Government of a Province may (a) to the extent electricity is supplied to that Province from the national grid,

require supply to be made in bulk for transmission and distribution within the Province;

(b) levy tax on consumption of electricity within the Province; (c) construct power houses and grid stations and lay transmission lines for use

within the Province; and(d) determine the tariff for distribution of electricity within the Province”.

7. Jurisdiction of the CCI in the matter of Electricity was thus restricted to the matters mentioned in paragraph 5 supra and not to those in paragraph 6 above.

8. The subjects mentioned in Part-II of the Federal Legislative List over which CCI had mandate to formulate and regulate policies included:- (1) Railways.(2) Mineral oil and natural gas; liquids and substances declared by Federal law

to be dangerously inflammable.(3) Development of industries, where development under Federal control is

declared by Federal law to be expedient in the public interest; institutions, establishments, bodies and corporations administered or managed by the Federal Government immediately before the commencing day, including the West Pakistan Water and Power Development Authority and the West Pakistan Industrial Development Corporation; all undertakings, projects and schemes of such institutions, establishments, bodies and corporations, industries, projects and undertakings owned wholly or partially by the Federation or by a corporation set up by the Federation.

(4) Council of Common Interests. (5) Fees in respect of any of the matters in this Part but not including fees taken

in any court.(6) Offenses against laws with respect to any of the matters in this Part.(7) Inquiries and statistics for the purposes of any of the matters in this Part.

8(8) Matters incidental or ancillary to any matters enumerated in this Part.9. Other functions which the Council was authorized to perform were:-

a) framing its own Rules of Procedure unless provision in this regard was made by an Act of Parliament (Clause 2 of Article 154) (Annex-C).

b) to act in accordance with the directions of the Parliament given in a joint sitting generally or in a particular matter (Clause 4 of Article 154) (Annex-C).

c) entertain complaints as to interference with water supplies (Article 155) (Annex-C).

10. Article 155, reproduced below gave the detailed procedure to be followed in case of complaints as to interference with water supplies. It stated:-“(1) If the interests of a Province, the Federal Capital or the Federally

Administered Tribal Areas, or any of the inhabitants thereof, in water from

8The 1973 Constitution.



any natural source of supply have been or are likely to be affected prejudicially by-(a) any executive act or legislation taken or passed or proposed to be

taken or passed; or (b) the failure of any authority to exercise any of its powers with respect

to the use and distribution or control of water from that source;

the Federal Government or the Provincial Government concerned may make a complaint in writing to the Council

(2) Upon receiving such complaint, the Council shall, after having considered the matter, either give its decision or request the President to appoint a commission consisting of such persons having special knowledge and experience in irrigation, engineering, administration, finance or law as he may think fit, hereinafter referred to as the Commission.

(3) Until Parliament makes provision by law in this behalf, the provisions of the Pakistan Commissions of Inquiry Act, 1956 (VI of 1956), as in force immediately before the commencing day shall apply to the Council or the Commission as if the Council or the Commission were a commission appointed under that Act to which all the provisions of section 5 thereof applied and upon which the power contemplated by section 10-A thereof had been conferred.

(4) After considering the report and supplementary report, if any, of the Commission, the Council shall record its decision on all matters referred to the Commission.

(5) Notwithstanding any law to the contrary, but subject to the provisions of clause (5) of Article 154, it shall be the duty of the Federal Government and the Provincial Government concerned in the matter in issue to give effect to the decision of the Council faithfully according to its terms and tenor.

(6) No proceeding shall lie before any court at the instance of any party to a matter which is or has been in issue before the Council, or of any person whatsoever, in respect of a matter which is actually or has been or might or ought to have been a proper subject of complaint to the Council under this

Article.”

11. Responsibility of the Council to the Parliament

i) Article 153 (Clause 4 Annex-C) made the CCI responsible to the Parliament. It stated that:

ii) Parliament could by law make provisions for Rules of Procedure of the Council (Clause 3 of Article 154) (Annex-C)

iii) Parliament in joint sitting by resolution could issue directions to the

9




Council generally or in a particular matter to take action as Parliament may deem just and proper. Such directions of the Parliament were binding on the Council (Clause 4 of Article 154) (Annex-C)

iv) Parliament in joint sitting could decide the references made to it by the Federal Government or Provincial Governments against the decisions of the Council. Decision of the Parliament in this behalf was final. (Clause 5 of Article 154).

Rules of Business, 1973

12. Rules of Business, 1973 of the Federal Government were drafted under Articles 90 and 99 (Annex-C) of the 1973 Constitution. All Secretariat work for the Cabinet, Council of Common Interests, Inter Provincial Conference, National Economic Council and their Committees was assigned to the Cabinet Division as per entry at Serial No.1 under Cabinet Division in Schedule-II to the Rules of Business (Annex-D).

13. The fora of Cabinet, CCI and National Economic Council were mentioned in various provisions of the Constitution but there was no mention of Inter Provincial Conference. It can be speculated that this forum is an amended version of the Governor's Conference mentioned in the Rules of Business (1962) framed under the 1962 Constitution.

14. Rules 21 and 22 (Annex-D) of the Rules of Business, 1973 separately prescribed the procedure regarding Inter Provincial Conference and National Economic Council. Rule 21 of the said Rules as was in vogue at that time read as follows:-

Procedure regarding Inter-Provincial Conference:(1) Meetings of the Inter-Provincial Conference shall be convened by the

Cabinet Division under the directions of the Prime Minister who shall preside at the meetings.

(2) Only cases of major importance which require policy decision and mutual discussion between the Federal and the Provincial Governments shall be brought before the Inter-Provincial Conference.

(3) The Federal and Provincial Ministers and officials of the concerned Divisions and of the Provincial Governments may be associated with the deliberations of the Conference as and when considered necessary.

(4) The provisions of rules 18 and 20 shall apply mutatis mutandis to the manner of submission of cases to, and the procedure for the meetings of, the Inter-Provincial Conference except that the summary shall reach the Cabinet Division at least 21 days in advance of the commencement of the Conference.

(5) Other instructions regarding the submission of cases to the Conference shall 10be issued by Cabinet Division.”




Rules of Procedure of CCI

15. The procedure regarding meetings of the CCI was not mentioned in the above said Rules, either due to simple omission or because of the provision in Clause 2 of Article 154 whereby the Council could make its own Rules of Procedure till the framing of law on the subject by the Parliament.

16. CCI framed its Rules of Procedure in its fourth meeting held in January, 1991. For a copy of these Rules see Annex-E.

17. These procedures were duly followed and most of the subjects discussed in the first three meetings of CCI mostly pertained Rule 21 of the Rules of Business 1973. List of subject discussed in the first three meetings of CCI is given below which indicates that only a few of these subject were those that were directly linked to the constitutional mandate of CCI:

1st Meeting - 7 – 9 August 1975

General review of political and economic situation in Punjab, Sindh, NWFP and Balochistan

1

Incidents of bomb explosions; criminal tampering of railway tracks and robberies in running trains

2

Tightening of security arrangements at all airports in the country3

Sindo Desh movement4

Situation in tribal areas5

Corruption6

Problems of food scarcity in Pakistan7

Matters relating to the Pat Feeder Area8

Subvention for improvement of small cities and towns9

Nomination to local bodies10

Anti Bradri Law11

Junior Revenue Courts12

Agriculture Enquiry Committee Report13

2nd Meeting – 27 -28 December 1975

Law and order situation in Punjab, Sindh, NWFP and Balochistan1

Local bodies elections2

Review of population planning program and policies3

Measures to enhance efficiency of public sector road transport in various Provinces4

Strategic communications roads – railways and bridges5



18. A deeper look into the above subjects reveals that these were mostly the matters where the assistance of Provincial Governments was required for implementation of Federal responsibilities or where the Federal Government deemed it fit to give directions to the Provinces.

19. Rules of Procedure for CCI framed in 1991 (Annex-E) helped in restricting the subject matters brought before CCI to only those as were covered by the mandate of CCI given in the Constitution.

Issues discussed in CCI

20. List of subjects discussed in the fourth to eleventh meeting of CCI is given below:-

First Annual Interim Report of the Council of Islamic Ideology – Guidelines to be given to the Federal and Provincial Governments

6

Developing administrative staff associations of academic institutions7

Admission of the children of the Defence services personnel in educational institutions including medical and professional colleges in all the provinces of Pakistan irrespective of their place of domicile

8

Cotton power loom crisis9

Proposal to restrict rationing system to low income group10

Restriction on number of guests on wedding parties11

3rd Meeting – 31 December 1976

Setting up a commission on division and sharing of water from the Indus river system

1

Teaching allowance for teachers2

Elections of High Court Bar Association3

Punjab Housing facilities for non-proprietors in rural areas Act, 1975.4

Use of sirens5

Television programs6

Wireless sets7

4th Meeting – 12 January 1991

The Rules of Procedure of the CCI1

Payment of net profit of electricity from hydel generation to the Provinces2

Apportionment of Indus Waters to the four Provinces.3

5th Meeting – 21 March 1991

Division and sharing of Indus Waters between the four Provinces1



Meetings of the Council

21. Following is the date-wise description of the first eleven meetings of CCI. The record indicates huge gaps in time when there was no CCI meeting for up to fifteen years.

1st meeting August 7 - 9, 19752nd meeting December 27-28, 19753rd meeting December 31, 19764th meeting January 12, 19915th meeting March 21, 19916th meeting September 16, 19917th meeting September 12, 19938th meeting May 29, 19979th meeting May 9, 199810th meeting December 22, 199811th meeting August 6, 2006

22. The official policies of not convening the CCI were visible in both democratic and authoritarian periods in Pakistan. Some of the democratic governments in this period also did not show great respect for this constitutionally founded inter-governmental forum.

6th Meeting – 16 September 1991

Post- Indus Water Accord policies1

Indus River System Authority2

New irrigation projects and programme3

Integrated water and hydro power development4

7th Meeting – 12 September 1993

Privatization of WAPDA and amendment of WAPDA Act, 19581

8th Meeting – 29 May 1997

Privatization of utilities and other state owned entities1

9th Meeting – 9 May 1998

Briefing on the National Water Resources Development Programme (NWRDP)1

10th Meeting – 22 December 1998

Further amendments to the WAPDA Act of 19581

11th Meeting – 2 August, 2006

Privatization Programme1



The Constitution and re-constitution of CCI

23. The CCI was constituted and reconstituted seventeen times since 1973 prior to the passage of the 2010 Eighteenth Amendment. The changes in the composition of CCI were made by all the Governments in power during the course of time, mainly as an effort to enhance provincial representation in CCI. This at times, was done in view of the changed portfolios of the Ministers hailing from different Provinces or depending upon the provincial background of the nominated Chairman of CCI. While nominating the chair of CCI, individual qualities such as the ability to conduct the proceedings of CCI smoothly and get the desired decisions through by developing consensus in the meetings, were also given consideration.

24. The composition of the Council at different periods of time is given in Annex-F. This indicates that thirteen out of seventeen times since its inception, the Council was headed by the Prime Minister or Chief Martial Law Administrator. On the remaining four occasions, a Federal Minister chaired the CCI.

25. The constitution and re-constitution of CCI mentioned above was done amongst others to meet the constitutional obligation of establishing the Council. This factor did not in any way ensure the holding of frequent ad regular meetings of the Council. Unfortunately, in thirty seven long years (1973-2010) this important federal institution was convened only eleven times.

This chapter attempted to describe the creation and evolution of CCI since 1973. Various dimensions of Council's functioning including drafting of its Rules of Procedure, functions and responsibilities have been described in this chapter. Moreover, an effort has also been made to examine CCI's operationalization before the passage of 18th Amendment. Policies of relative disregard pursued by civil and military regimes in Pakistan towards this Council have also been discussed.

Council of Common Interests: thPost-18 Amendment Scenario

CHAPTER 3



This chapter will further explore the legal, administrative and financial changes brought into the functioning of CCI. An effort will be made to discuss relevant constitutional provisions in detail. It will also look at the working of the Council in the post-18th Amendment phase. 1. The 18th Amendment Act of 2010 was an exercise in comprehensive constitutional

reform in Pakistan. Besides revising various clauses of the Constitution, it also amended Articles 153, 154, 155 and 157 of the Constitution pertaining to the composition, functions and mandate of CCI. The following paragraphs will discuss the post-18th Amendment content of these Articles:

Council of Common Interests

2. 153.(1)There shall be a Council of Common Interests, in this Chapter referred to as the Council, to be appointed by the President.

(2). The Council shall consist of -(a) the Prime Minister who shall be the Chairman of the Council;(b) the Chief Ministers of the Provinces; and(c) three members from the Federal Government to be nominated

by the Prime Minister from time to time.(3). [Omitted](4). The Council shall be responsible to {Majlis-e-Shoora (Parliament)}and shall

11submit an Annual Report to both Houses of Majlis-e-Shoora (Parliament).

Functions and Rules of Procedure

3. 154.(1)The Council shall formulate and regulate policies in relation to matters in Part II of the Federal Legislative List and shall exercise supervision and control over related institutions.

2. The Council shall be constituted within thirty days of the Prime Minister taking oath of office.

3. The Council shall have a permanent Secretariat and shall meet at least once in ninety days. The Prime Minister may also convene an emergency meeting if requested by the Province to discuss an urgent matter.

4. The decisions of the Council shall be expressed in terms of the opinion of the majority.

5. Until [Majlis-e-Shoora (Parliament)] makes provision by law in this behalf, the Council may make its own Rules of Procedure.

6. [Majlis-e-Shoora (Parliament)] in joint sitting may from time to time by resolution issue directions through the Federal Government to the Council generally or in a particular matter to take action as [Majlis-e-Shoora (Parliament)] may deem just and proper and such directions shall be

11The 18th Amendment Act, 2010.



binding on the Council.7. If the Federal Government or a Provincial Government is dissatisfied with

a decision of the Council, it may refer the matter to {Majlis-e-Shoora 12(Parliament)}in a joint sitting whose decision in this behalf shall be final.

Complaints about interference with water supplies

4. Article 155 - (1) If the interests of a Province, the Federal Capital or the Federally Administered Tribal Areas, or any of the inhabitants thereof, in water from any natural source of supply (or reservoir) have been or are likely to be affected prejudicially by-(a) any executive act or legislation taken or passed or proposed to be

taken or passed; or (b) the failure of any authority to exercise any of its powers with respect

to the use and distribution or control of water from that source; the Federal Government or the Provincial Government concerned may make a complaint in writing to the Council.


(3) Until [Majlis-e-Shoora (Parliament)] makes provision by law in this behalf, the provisions of the Pakistan Commissions of Inquiry Act, 1956, as in force immediately before the commencing day shall apply to the Council or the Commission as if the Council or the Commission were a commission appointed under that Act to which all the provisions of section 5 thereof applied and upon which the power contemplated by section 10A thereof had been conferred.



(6) No proceeding shall lie before any court at the instance of any party to a matter which is or has been in issue before the Council, or of any person whatsoever, in respect of a matter which is actually or has been or might or ought to have been a proper subject of complaint to the Council under this

13Article.

12The 18th Amendment Act, 2010.13The 18th Amendment Act, 2010.



Electricity

5. Article 157. (1) The Federal Government may in any Province construct or cause to be constructed hydro-electric or thermal power installations or grid stations for the generation of electricity and lay or cause to be laid inter-Provincial transmission lines.[Provided that the Federal Government, prior to taking a decision to construct or cause to be constructed, hydro-electric power stations in any Province, shall consult the Provincial Government concerned.]

(2) The Government of a Province may -(a) to the extent electricity is supplied to that Province from the national

grid, require supply to be made in bulk for transmission and distribution within the Province;

(b) levy tax on consumption of electricity within the Province; (c) construct power houses and grid stations and lay transmission lines

for use within the Province; and(d) determine the tariff for distribution of electricity within the Province.

(3) In case of any dispute between the Federal Government and a Provincial Government in respect of any matter under this Article, any of the said Governments may move the Council of Common Interests for resolution of

14the dispute.

Federal Legislative List (Part-II)

6. The list of subjects in Part-II of the Federal Legislative List was also enlarged through the 18th Amendment where number of subjects was increased from eight to eighteen. One of the ten new subjects added to the Part-II of FLL was that of electricity. Prior to the passage of the 18th Amendment, this subject was already included in the domain of CCI.

7. New list of subjects under Part-II of the Federal Legislative List is reproduced below:-(1) Railways;(2) Mineral oil and natural gas, liquids and substances declared by Federal law

to be dangerously inflammable;(3) Development of industries, where development under Federal control is

declared by Federal law to be expedient in the public interest; institutions, establishments, bodies and corporations administered or managed by the Federal Government immediately before the commencing day, including Water and Power Development Authority and Pakistan Industrial Development Corporation and all undertakings, projects and schemes of such institutions, establishments, bodies and corporations; industries,




projects and undertakings owned wholly or partially by the Federation or by a corporation set up by the Federation;

(4) Electricity; (5) Major ports, that is to say, the declaration and delimitation of such ports,

and the constitution and powers of port authorities therein;(6) All regulatory authorities established under a Federal law;(7) National planning and national economic coordination including planning

and coordination of scientific and technological research;(8) Supervision and management of public debt;(9) Census;(10) Extension of the powers and jurisdiction of members of a police force

belonging to any Province to any area in another Province, but not so as to enable the police of one Province to exercise powers and jurisdiction in another Province without the consent of the Government of that Province; extension of the powers and jurisdiction of members of a police force belonging to any Province to railway areas outside that Province;

(11) Legal, medical and other professions;(12) Standards in institutions for higher education and research, scientific and

technical institutions; (13) Inter-provincial matters and co-ordination; (14) Council of Common Interests; (15) Fees in respect of any of the matters in this Part but not including fees taken

in any court;(16) Offenses against laws with respect to any of the matters in this Part;(17) Inquiries and statistics for the purposes of any of the matters in this Part;

15(18) Matters incidental or ancillary to any matters enumerated in this Part.

Changes made through the 18th AmendmentArticle 153

8. Previously the Council was composed of four Federal Ministers and four Chief Ministers. Prime Minister, if he was one of the members of the Council was to act as Chairman of the Council. If the Prime Minister was not the member of the Council, the President while appointing the Council's members could nominate one of the Federal Minister or a member of the Council to act as its Chairman.

9. After 18th Amendment, the Prime Minister has to be the Chairman of the Council. No Federal Minister can act or be appointed as the Chairman of the Council.

10. The Council prior to the 18th Amendment was responsible to the Majlis-e-Shoora (Parliament) but how that responsibility was to be carried out was not elaborated. After the 18th Amendment, the Council is required to submit its Annual Report to both Houses of the Parliament. Two Annual Reports of the Council for the years




2011 and 2012 have been presented to the Parliament so far. Annual Report for the year 2013 is being prepared in the Secretariat of the Council of Common Interests (IPC Division) and will be presented to the Parliament in due course of time.

Article 154

11. List of subjects in Federal Legislative List (Part-II) was enlarged and the number of entries in that list was increased from eight to eighteen. New list of subjects is described in preceding pages (para 49).

12. In the pre-18th Amendment period, the President was obligated to constitute the CCI but there was no fixed time frame given. The Council was often constituted rather irregularly by both democratic and autocratic governments. The only exception was the period 1999-2006 when the CCI was never constituted or convened. The 18th Amendment has now made it binding for the Prime Minister to constitute CCI within first thirty days of coming into the office.

13. The Prime Minister can now convene the meetings of the Council after being requested by a Province on an urgent matter. Previously meetings were convened only when the Chairman of the Council considered it necessary.

14. The 18th Amendment has taken measures to further institutionalize the CCI. An important step in this regard is the founding of permanent Secretariat. In addition, CCI is obligated to meet at least once in ninety days.

15. CCI's new Rules of Procedure were codified with the approval of CCI in July 2010 (Annex-G). These Rules while calling for setting up of permanent Secretariat also provided that till the time its own Secretariat is set up, Inter Provincial Coordination Division shall act as its Secretariat and till the time its Secretary is appointed, Secretary IPC Division shall act as Secretary of the Council.

16. Clause 5 of Article 154 provided that until Majlis-e-Shoora (Parliament) made provisions by law on its behalf, the Council could make its own Rules of Procedure. In the four decades since inception of the Constitution in 1973, no law on the subject has been framed and the Council is functioning under its own Rules of Procedure. Since 1973, the CCI has operated under rules that itself drafted first in 1991 and then on 18th July, 2010 following the passage of 18th Amendment.

17. According to clause 6 (numbered 4 before the 18th Amendment) of Article 154, the CCI was to receive guidance through resolution passed in the joint sitting of Majlis-e-Shoora (Parliament). No such direction has ever been given to the Council by the Parliament throughout history. This holds true for both pre and post-18th Amendment phases.

18. Under Clause 5 (renumbered 7 in the 18th Amendment), the Federal or a Provincial Government, if dissatisfied with the decision of the Council could refer the matter to Parliament in a joint sitting. No such reference has ever been made by any Federal or Provincial Governments to the Parliament against any of the decisions of the Council.



Article 155

19. Prior to the passage of the 18th Amendment, the complaints as to interference with water supplies from any “natural source' which were likely to be prejudicially affected by administrative or legislative acts of any authority could be brought before the Council by Federal or Provincial Governments. Expanding the scope of powers of CCI on water disputes, the 18th Amendment now allows for airing of complaints concerning water rights from any “reservoir” likely to be affected by any administrative or legal act of any Government to be brought to the Council.

Article 157

20. After the passage of the 18th Amendment, the Federal Government is obligated to consult the concerned provincial Government prior to taking a decision to construct or cause to be constructed a hydro electric power station in that Province .Under Article 157(2) the Federation or the Provinces can move the Council for resolution of any dispute between them under this Article.

Federal Legislative List Part-II

21. Out of eighteen entries now given in the Federal Legislative List (Part-II), four entries (no.15 -18) which in the previous list numbered five to eight pertain to:-(a) Fees in respect of any of the matters in this Part but not including fees taken

in any court.(b) Offenses against laws with respect to any of the matters in this Part.(c) Inquiries and statistics for the purposes of any of the matters in this Part.(d) Matters incidental or ancillary to any matters enumerated in this Part.

The above entries were not independent subjects but related to other fourteen subjects mentioned in Part-II of FLL. The number of subjects now in the domain of CCI is in fact fourteen.

22. Following ten new entries have been made in Part-II of FLL:-(1) Electricity; (2) Major ports, that is to say, the declaration and delimitation of such

ports, and the constitution and powers of port authorities therein;(3) All regulatory authorities established under a Federal law;(4) National planning and national economic coordination including planning

and coordination of scientific and technological research;(5) Supervision and management of public debt;(6) Census;(7) Extension of the powers and jurisdiction of members of a police force

belonging to any Province to any area in another Province, but not so as to enable the police of one Province to exercise powers and jurisdiction in



another Province without the consent of the Government of that Province; extension of the powers and jurisdiction of members of a police force belonging to any Province to railway areas outside that Province;


technical institutions; 16(10) Inter-provincial matters and co-ordination;

23. Out of ten entries mentioned above, following four subjects have been moved from Part-I to Part-II of the Federal Legislative List:(1) Major ports, that is to say, the declaration and delimitation of such ports,

and the constitution and powers of port authorities therein;(2) National planning and national economic coordination including planning

and coordination of scientific and technological research;(3) Census;(4) Extension of the powers and jurisdiction of members of a police force

belonging to any Province to any area in another Province, but not so as to enable the police of one Province to exercise powers and jurisdiction in another Province without the consent of the Government of that Province; extension of the powers and jurisdiction of members of a police force belonging to any Province to railway areas outside that Province;

24. Following subjects earlier appeared in the erstwhile Concurrent Legislative List:(1) Electricity; (2) Legal, medical and other professions;

25. After the 18th Amendment, following new subjects were added to the Part-II of the FLL:(1) All regulatory authorities established under a Federal law.(2) Supervision and management of public debt.(3) Standards in institutions for higher education and research, scientific and

technical institutions. (4) Inter-Provincial matters and Coordination.

Meetings of the Council

26. Since the enactment of the 18th Amendment in 2010, thirteen meetings of the Council have so far been held. Dates on which these meetings were held are also mentioned below:

(1) 12th meeting July 18, 2010(2) 13th meeting September 6, 2010(3) 14th meeting November 8, 2010(4) 15th meeting February 1, 2011(5) 16th meeting April 28, 2011

16See the 18th Amendment Act 2010.



(6) 17th meeting June 1, 2011(7) 18th meeting August 27, 2011(8) 19th meeting February 9, 2012(9) 20th meeting August 8, 2012(10) 21st meeting November 8, 2012(11) 22nd meeting January 23, 2013(12) 23rd meeting July 23, 2013(13) 24th meeting July 31, 2013

27. In the post-18th Amendment, the constitutional requirements of holding regular meetings has been followed. The first seven meetings of the revamped CCI were held keeping in mind the ninety-day clause. There was a gap of about six month each between seventh, eighth and ninth meetings. There was also a gap of six months between eleventh and twelfth meetings of the Council

Matters discussed in CCI

28. Several new issues have been brought to CCI since its re-activation after the passage of the 18th Amendment. Following is a list of issues discussed in CCI since 2010:

12th Meeting – July 18, 2010

Rules of Procedure of Council of Common Interests, 20101

Implementation of the Eighteenth Amendment.2

NEPRA's Annual Report, 2008-09 and State of Industry Report, 2009.3

Intellectual Property Organization of Pakistan (IPO-Pakistan)'s issues.4

National consensus for construction of Diamer Basha Dam Project.5

Tharcoal Project6

Working of Railways7

Population Census8

13th Meeting - September 6, 2010

Flood crisis and strategies to deal with it with a focus on relief, rehabilitation and reconstruction plans

1

14th Meeting – November 8, 2010

Damage and Needs Assessment (DNA) and External Assistance for Floods1



Implementation mechanism and post-flood reconstruction2

6th Population and Housing Census3

Special Economic Zones Bill, 20104

Regulation of generation, transmission and distribution of electric power (Amendment) Bill, 2010

5

Sugar availability 6

15th Meeting – February 1, 2011

Financing for the organizations and projects transferred to the Provinces.1

Tight Gas (Exploration & Production) Policy, 20112

Subsidy on agricultural tube wells3

Management and outsourcing of power sector entities through Public Private Partnership (PPP) Mode.

4

16th Meeting – April 28, 2011

Report on implementation of Council of Common Interests (CCI) Decisions1

NEPRA's Annual Report 2009-10 and State of Industry Report 20102

Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill, 2010.

3

Approval for negotiations and signing of Memorandum of Understanding on Cooperation between Korea Rail Road Corporation (Korail), Republic of Korea and Pakistan Railways, Ministry of Railways, Government of Pakistan

4

Privatization of Power Sector Entities5

Dispute arising from the interpretation of Article 157 of the Constitution by the Federation and appropriate amendment in the policy for power generation projects (2002) so as to bring it in line with the letter and spirit of the said Article.

6

Funding for devolved organizations, institutions and departments and Projects of defunct ministries and divisions beyond 30th June, 2011

7

Devolution of National Education Foundation (NEF) and National Commission for Human Development (NCHD).

8

Private Power and Infrastructure Board (PPIB) Bill, 20109

17th Meeting - June 1, 2011

Harmonization of Agriculture Income Tax Policy in the provinces1

Revenues of Regulatory Authorities of Federal Government2

Approval of Draft Securities and Exchange Commission of Pakistan Bill, 20113

Devolution of National Education Foundation (NEF) and National Commission for Human Development (NCHD)

4



Allocation of Water for Islamabad and Rawalpindi5

Financial Autonomy of Indus River System Authority6

Policy Guidelines for Power Generation through Small Independent Power Projects (SIPPs) below 50 MW Capacity

7

Allocation of Water for AJ&K for drinking and irrigation purposes.8

18th Meeting - August 27, 2011

Approval of the Council of Common Interests of Pakistan for Special Economic Zones Bill, 2011

1

Distribution of Zakat Funds to Federal Areas and Provinces and Distribution of Arrears of un-utilized Zakat Funds claimed by the Provinces

2

Co-financing of Citizens' Damage Compensation Programme-II 3

Public Debt Management and Supervision Policy4

Gas Infrastructure Development Levy for laying gas pipelines to import gas through pipelines, LNG and other projects

5

Privatisation of Power Sector Entities6

Sixth Population and Housing Census7

19th Meeting - February 9, 2012

Annual Report of the Council of Common Interests (CCI) for the Year 2010-111

Report on implementation of Council of Common Interests (CCI) Decisions2

Amendments in PPRA Ordinance, 2002 through Public Procurement Regulatory Authority (Amendment) Bill, 2011

3

Financial crunch faced by Population Welfare Department, Punjab4

National Science, Technology & Innovation Policy – 20125

Approval of Petroleum Exploration and Production Policy 20126

Financial Autonomy of Indus River System Authority 7

20th Meeting - August 8, 2012

Report on Implementation of Council of Common Interests (CCI) Decisions1

Equitable distribution of Electricity throughout the country2

Approval of Petroleum (Exploration & Production) Policy, 20123

Approval of National Mineral Policy, 20124

21st Meeting - November 8, 2012

Annual Report of the Council of Common Interests for the year 2011-121

Report on Implementation of Council of Common Interests decisions2

Setting up of the Committee of the Council of Common Interests (CCI)3



Working and Functioning of National Electric Power Regulatory Authority (NEPRA)

4

Jurisdiction of the Council of Common Interests (CCI) vis-à-vis the Intellectual Property Organization of Pakistan (IPO-Pakistan)

5

Renaming of Ministry of Professional and Technical Training as Ministry of Education and Trainings

6

Provincial representation in Federal Entities7

Approval of National Mineral Policy – 20128

Equitable distribution of electricity9

Briefing on the working of Pakistan Railways10

22nd Meeting - January 23, 2013

Status review of important decisions of the CCI meetings1

Regularization of Lady Health Workers etc2

Issue of non/delayed payments by sugar mill owners to sugarcane growers3

Briefing on the working of Pakistan Railways4

23rd Meeting – July 23, 2013

Briefing on the functioning of Council of Common Interests1

National Energy (Power) Policy, 2013-20182

Inter-Provincial Transfers and Fiscal Discipline3

24th Meeting – July 31, 2013

National Energy (Power) Policy, 2013-20181

Offences and penalties relating to electricity – Amendment in the PPC and Cr PC 2

Amendment in the Petroleum Policy, 20123

Draft Bill for enactment of the Gas (Theft Control & Recovery) Ordinance, 20134

Draft Bill for enactment of the Gas (Theft Control & Recovery) Ordinance, 20135

29. Comparative position of number of meetings of CCI and the items brought before the Council before and after the 18th Amendment and in later period is as under:-

Pre-18th Amendment Period (August 1973- April 2010) -

about 37 years -

Post-18th Amendment (April 2010- September 2013) -

about 3 years -

11 12Number of Meetings

44 76Number of Items brought before the Council



Permanent Secretariat of the Council

30. Rules of Business of 1973 provided that Cabinet Division was to act as the Secretariat of the Council of Common Interests. The Council in its fourth meeting held on 12th January 1991, authorized the establishment of a separate permanent secretariat to be located in Islamabad. In the mean time while these changes were taking place, the Cabinet Division was to continue to act as the Secretariat of the Council.

31. The separate Secretariat for the CCI could not be established prior to the passage of the 18th Amendment. Following new provision was added as Clause 3 to Article 154:

“The Council shall have a permanent Secretariat and shall meet at least once in ninety days”.

32. The fresh Rules of Procedure (Annex-G) framed under the 18th Amendment did provide for a permanent secretariat of the Council. A proviso was, however, added to this Rule which permitted Inter Provincial Coordination Division to act as Secretariat of Council till such time a separate Secretariat was established.

33. The matter of separate Secretariat for the Council had been discussed in the meetings of the Council as well but practically no concrete steps have yet been taken in this regard.

This chapter has taken a detailed look into the substantive changes affecting the working, institutionalization and scope of powers of the Council of Common Interests following the passage of the 18th Amendment. It has been discovered that the 18th Amendment has brought new life into the workings of the Council. Since 2010, CCI has regularly been convened with few exceptions and has frequently debated various issues brought to its attention thus fulfilling its constitutional obligations.

Amended Council of Common Interests: An Appraisal

CHAPTER 4



CCI: Rules of Procedure 2010

1. Clause 5 of Article 154 provided that “Until [Majlis-e-Shoora (Parliament)] makes provision by law in this behalf, the Council may make its rules of procedure”. No such law has been passed by the Parliament since 1973 to date. The Council framed its Rules of Procedure first in 1991 (Annex-F) in its fourth meeting.

2. The Rules framed in 1991 needed exhaustive changes in view of amendments in various Articles of the Constitution pertaining to composition and functions of the Council through the 18th Amendment. New Rules of Procedure of CCI were approved in its very first meeting in July, 2010. Copy of Rules of Procedure is given in Annex-G.

Matters to be discussed by the Council

3. The matters to be discussed by the Council are given in Articles 154,155 and 157 of the Constitution and Part II of the Federal Legislative List. A detailed list of all these matters was also added as Schedule I of Rules of Procedure, 2010, which is reproduced below:

(1) Railways;(2) Mineral oil and natural gas, liquids and substances declared by Federal law

to be dangerously inflammable;(3) Development of industries, where development under Federal control is

declared by Federal law to be expedient in the public interest; institutions, establishments, bodies and corporations administered or managed by the Federal Government immediately before the commencing day, including Water and Power Development Authority and Pakistan Industrial Development Corporation and all undertakings, projects and schemes of such institutions, establishments, bodies and corporations; industries, projects and undertakings owned wholly or partially by the Federation or by a corporation set up by the Federation;

(4) Electricity; (5) Major ports, that is to say, the declaration and delimitation of such ports,

and the constitution and powers of port authorities therein;(6) All regulatory authorities established under a Federal law;(7) National planning and national economic coordination including planning

and coordination of scientific and technological research;(8) Supervision and management of public debt;(9) Census;

Schedule-I

CASES TO BE SUBMITTED TO THE COUNCIL



(10) Extension of the powers and jurisdiction of members of a police force belonging to any Province to any area in another Province, but not so as to enable the police of one Province to exercise powers and jurisdiction in another Province without the consent of the Government of that Province; extension of the powers and jurisdiction of members of a police force belonging to any Province to railway areas outside that Province;


technical institutions; (13) Inter-provincial matters and co-ordination; (14) Council of Common Interests; (15) Fees in respect of any of the matters specified in Part-II of the Federal

Legislative List but not including fees taken in any court;(16) Offenses against laws with respect to any of matters in Part-II of the

Federal Legislative List;(17) Inquiries and statistics for the purposes of any of the matters in Part-II of

the Federal Legislative List;(18) Matters incidental or ancillary to any matter enumerated in Part-II of the

Federal Legislative List;(19) Complaints as to interference with water supplies (Article 155);(20) Implementation of the directions given by the Parliament for action by the

Council under Article 154(6); (21) Submission of Annual Report to both Houses of Parliament (Article 153(4);

and (22) Resolution of disputes with respect to construction of Hydro electric station

in any Province (Article 157(3).”

4. Rules of Procedure 2010 define the role of the Secretariat of the Council; rules for meetings; procedure for submission of cases; records of proceedings and process of implementation of decisions of the Council. These are elaborated in the succeeding paragraphs.

Role of the Secretariat of the Council

5. Secretariat of Council is responsible for:-i) inviting the summaries from Ministries/Divisions of the Federation and the

Provinces on various items which fall under the purview of CCI,ii) scrutinizing the summaries with a view to ensuring that these pertains to

the subjects that fall in the domain of CCI, elaborated in Schedule-I to the Rules of Procedure, 2010,

(iii) ensuring that the manner of submission of cases to the Council mentioned in Rule 10 and elaborated in Schedule-II of Rules of Procedure, 2010, has been followed,



(iv) ensuring that the summary for the Council has been prepared in accordance with Rule 10 and instructions contained in Schedule III to the Rules of Procedure, 2010,

(v) seeking the approval of Chairman under rule 5 (1) of Rules of Procedure for the date, time and venue for the meeting,

(vi) issue notices under rule 7 of Rules of Procedure for the meeting to all concerned, ordinarily at least ten working days in advance,

(vii) recording the minutes of the meetings and decisions taken by the Council,(viii) circulating, under rule 6 to the Rules of Procedure, to the members, within

seven working days of the meeting, a copy of the minutes and decisions,(ix) supplying to the Secretary of the Division or the Chief Secretary concerned

for action a copy of the relevant decision,(x) monitoring the implementation of the decisions of the Council,(xi). preparation of Annual Reports of the Council to be presented to the

Parliament.

Rules for the meeting of the Council

6. Rules for the meeting of the Council are elaborated in Rule 5 that are reproduced below:-Meetings of the Council.- (1) The Chairman may summon the meetings of the

Council, to meet at such time and place as he thinks fit. (2) The Council shall meet at least once in ninety days: provided that the

Chairman may convene a meeting on the request of a Province on an urgent matter.

(3) The meetings of the Council shall be attended by its members.(4) The Chairman may permit any other Federal Minister, or a Provincial

Minister and any official to attend the meeting of the Council by special invitation.

(5) In a meeting of the Council, four members, shall form the quorum; provided that at least two Chief Ministers are present provided further that a matter relating to a Province shall not be discussed unless the Chief Minister of that Province is present in the meeting.

(6) No case shall be discussed nor any issue be raised in a meeting unless summary relating to it has first been circulated provided that the Chairman may dispense with this requirement in exceptional circumstances.

(7) Notice for the meeting shall ordinarily be issued at least ten working days in advance.

(8) For inclusion in the agenda of a meeting summary relating to the case shall reach the Secretary at least fifteen days in advance of the meeting provided that, if a case is urgent and is required to be taken up at a short notice, the Secretary of Division or Chief Secretary of the concerned Province shall obtain approval of the Chairman for its inclusion in the agenda before it is



transmitted to the Secretary. (9) The Secretary of the Division or Chief Secretary of the Province concerned

shall attend the meeting of the Council for the purpose of the case relating to his Division or Province. However, these officers may be asked to withdraw from the meeting before the Council starts discussion on the issue.

(10) The decisions of the Council shall be expressed in terms of the opinion of 17the majority.”

Procedure for submission of cases to the Council

7. Rule of Procedures (Rule 10) prescribes that manner of submission of cases before the Council and preparation of summaries therefore, shall be as given in Schedule II and Schedule III to these rules, respectively or as notified by the Secretariat from time to time. Schedule II and Schedule III of the Rules are reproduced below:

1. In respect of all cases to be submitted to the Council, Secretary of the Division or Chief Secretary of the Province concerned, shall transmit to the Secretary a concise, lucid and printed Summary, giving the background and relevant facts, points for decision and recommendations of the Federal Government or Provincial Government concerned, as the case may be.

2. The Summary shall be self-contained as far as possible, not exceeding two printed pages and may include as appendices only such relevant papers as are necessary for proper appreciation of the case.

3. Where a reference is made to a previous decision of the Council, the decision of the Council shall invariably be reproduced in the Summary or annexed to it.

4. Where a case concerns more than one Division or the Province, the Summary shall normally not be submitted to the Council until it has been considered by the Divisions and/or the Provinces concerned. In case of difference of opinion, the point of difference should be stated in the Summary.

5. The Provinces and the Divisions concerned of the Federal Government should furnish their comments or views on the summaries for the Council circulated for the purpose, within two weeks. The requirements of prior consultation may be waived in very exceptional circumstances but the Summary must, in that case, be sent to others concerned with the request to

Schedule-II

MANNER OF SUBMISSION OF CASES TO THE COUNCIL

17The 18th Amendment Act 2010.



send their views direct to the secretariat of the Council by a given date. The secretariat would circulate the views, if received in time, along with or in continuation of the Summary.

6. It shall be the duty of the Secretary to satisfy himself that the summary submitted by the Federal or a Provincial Government is complete and in the prescribed form. He may return a case until the requirements of these rules, have been complied with.

A Summary for the Council shall include-

(a) name of the sponsoring Division of the Federal Government or Department of the Provincial Government;

(b) subject of the case; (c) name and designation of the officer submitting the Summary

(Secretaries/Additional Secretaries-in-Charge of Divisions concerned in case of Federal Government and Chief Secretaries in case of Provincial Government);

(d) place and date of submission; and(e) serial number.

(2) The words "SUMMARY FOR THE COUNCIL OF COMMON INTERESTS" shall invariably appear at a prominent place, above "Subject". It shall be marked as "SECRET" at the top right corner on first page.

(3) All papers submitted to the Council shall be marked “SECRET” until discussion on them has taken place in the meeting. Thereafter, unless the Council has decided otherwise, the sponsoring Government shall decide the de-classification of these documents under intimation to the secretariat.

(4) The members shall return to the Secretary -(a) the summaries supplied to them for decision by discussion in

a meeting of the Council or a Committee of the Council immediately after the discussion has taken place; and

(b) minutes and decisions circulated by the Secretary immediately after they have perused them, but not later than fifteen days.”

Records of proceedings

8. Procedure for recording and circulation of minutes is provided in Rules 6 of the

Schedule-III

PREPARATION OF SUMMARIES AND DOCUMENT



Rules of Procedure, 2010 (reproduced below):Circulation and confirmation of minutes and decisions: The Secretary shall circulate to the members, within seven working days of the meeting, a copy of the minutes and decisions of the Council for perusal. The members shall return the aforesaid copy of the minutes and decisions to the Secretary within fifteen working days of issue. The Secretary shall also supply to the Secretary of the Division or the Chief Secretary of the Province concerned for action, a copy of the relevant decision of the Council, and wherever considered necessary, of the relevant excerpts of the points made during the discussion.

Implementation of decisions

9. Procedure regarding implementation of the decisions of the Council is given in Rule 11 of the Rules of Procedure of CCI, 2010:Implementation of decisions of the Council.- (1) When a case has been decided

by the Council, the Federal Government or Provincial Government concerned shall take prompt action to give effect to the decision unless it conveys its intention to make reference to the Parliament within fifteen days of its communication.

(2) When the decision of the Council is received by the Secretary of the Division or the Chief Secretary of the concerned Province, he shall (a) acknowledge the receipt of the decision in the form provided;(b) transmit the decision to his Division or Department for action;(c) keep a register with him of the decisions received, for the purpose of

ensuring that prompt and complete action is taken on those decisions; and

(d) coordinate action with any other Division or a Province, which may be concerned with the decision.

(3) The Secretary shall monitor the implementation of decisions and the Secretary of the Division or Chief Secretary of a Province concerned shall supply to the Secretary such documents as the latter may, by general or special request, require, enabling him to complete his record of the case and to satisfy himself that the decision of the Council has been fully implemented”.

Conclusion

CHAPTER 5



In light of the comprehensive changes brought by the 18th Amendment, it can be argued that formulation and regulation of policy and exercise of supervision and control over related institutions took these matters out of the domain of the Federal Government and gave it to the Council. The Federal Government's role in these matters has thus been marginalized.

But an opposing argument also needs to be taken into consideration. The 1973 Constitution provided for the establishment of parliamentary form of government and acknowledged the supremacy of the Parliament. The Council itself was responsible to the Parliament. The latter could also entertain the references of the Federal and the Provincial Governments challenging the decisions of the Council. In addition, Parliament could by law frame the Rules of Procedure of the Council and also issue instructions in a joint session on any issue. Such instructions are binding on the Council.

Parliament has under Article 70 (Annex-C) powers to legislate on matters in the Federal Legislative List, covering both Part-I and Part-II.

Extent of executive authority of the Federation as laid down in Article 97 (Annex-C) of the Constitution provided that “Subject to the Constitution, the executive authority of the Federation shall extend to the matters with respect to which Parliament has power to make laws, including exercise of rights, authority and jurisdiction in and in relation to areas outside Pakistan provided that the said authority shall not, save as expressly provided in the Constitution or in any law made by Parliament, extend in any Province to a matter with respect to which the Provincial Assembly has also power to make

18laws.”

If any of the policy on the subjects mentioned in Part-II of the Federal Legislative List, discussed and approved by the CCI needed implementation through framing of rules or a law, the said rules or law has obviously to be framed/approved by the Federal Government or the Parliament. The powers of CCI thus appear restricted to the formulation and regulation of policy in the matters referred to in Part-II of the Federal Legislative List and do not, in any way, restrict the administrative powers of the Federal Government or the legislative powers of the Parliament in matters in FLL Part-II also.

A glance through history reveals that there are a number of subjects in Part II of the Federal Legislative List on which discussions have never been held in the Council. These include “legal, medical and other professions, standards in institutions for higher education and research and major ports”. For many subjects, the discussions pertained to peripheral issues pertaining to those matters, leaving the policies on the main subjects aside.




The Provinces have equal power as that of Federal Government in the composition of the Council. They have been empowered to give their out put in policy options on various Federal matters through CCI. So far the Provinces have stayed away from demanding regular briefings to the Council by federation.

The CCI has complete autonomy in choosing the subject matter of its meetings. Only the Council decides which issues are to be discussed. No other forum has jurisdiction to decide as to what the Council should or should not consider.

The utility of the highest forum where consensus could be built between all the provinces and the Federation, on many important matters does not seem to have been fully exploited.

Annexure



Annex-AExcerpts from Constitution of Islamic Republic of Pakistan, 1956

Article 106 --- (1) Notwithstanding anything in the two next succeeding clauses, Parliament shall have exclusive power to make laws with respect to any of the matters enumerated in the Federal List.

(2) Notwithstanding anything in clause (3), Parliament, and subject to clause (1) a Provincial Legislature also, shall have power to make laws with respect to any of the matters enumerated in the Concurrent List.

(3) Subject to clauses (1) and (2), a Provincial Legislature shall have exclusive power to make laws for a Province or any part thereof with respect to any of the matters enumerated in the Provincial List.

(4) Parliament shall have power to make laws with respect to matters enumerated in the Provincial List, except for a Province or any part thereof.

……….Article 109. Subject to the provisions of Articles 107 and 108, the Provincial

Legislature shall have exclusive power to make the laws with respect to any matter not enumerated in any list in the Fifth Schedule, including any law imposing tax not mentioned in any such list; and the executive authority of the Province shall extend to the administration of any law so made.

……….Article 118 (1) As soon as may be after the Constitution Day, and thereafter at

intervals not exceeding five years, the President shall constitute a National Finance Commission consisting of the Minister of Finance of the Federal Government, the Ministers of Finance of the Provincial Governments, and such other persons as may be appointed by the President after consultation with the Governors of the Provinces.

(2) It shall be the duty of the National Finance Commission to make recommendations to the President as to -

(a) the distribution between the Federation and the Provinces of the net proceeds of the taxes mentioned in clause (3);

(b) the making of grants-in-aid by the Federal Government to the Governments of the Provinces;

(c) the exercise by the Federal Government and Provincial Governments of the borrowing powers conferred by the Constitution; and

(d) any other matter relating to finance referred to the Commission by the President.

Explanation. - In this Article "net proceeds" means, in relation to any tax, the proceeds thereof reduced by the cost of collection.



(3) The taxes referred to in paragraph (a) of clause (2) are following taxes raised under the authority of Parliament namely:

(a) export duty on jute and cotton, and any other specified export duty;

(b) taxes on income other than corporation tax;(c) specified duties of Federal excise;(d) taxes on sales and purchases; and(e) any other specified tax.

(4) As soon as may be after receiving the recommendations of the National Finance Commission, the President shall by Order specify, in accordance with the recommendations of the Commission under sub-clause (a) of clause (2), the share of the net proceeds of the taxes mentioned in clause (3) which is to be allocated to each Province, and that share shall be paid to the Government of the Province concerned, and shall not form part of the Federal Consolidated Fund.

(5) The recommendations of the National Finance Commission, together with an explanatory memorandum as to the action taken thereon, shall be laid before the National Assembly and the Provincial Assemblies.

……….Article 129 (1) Any dispute between the Federal Government and one or both

Provincial Governments, or between the two Provincial Governments, which under the law of the Constitution is not within the jurisdiction of the Supreme Court, may be referred by any of the Governments involved in the dispute to the Chief Justice of Pakistan, who shall appoint a tribunal to settle the dispute.

(2) Subject to the provisions of any Act of Parliament, the practice and procedure of any such tribunal, including the fees to be charged and the award of costs, shall be determined by rules made by the Supreme Court and approved by the President.

(3) The report of the tribunal shall be forwarded to the Chief Justice, who shall determine whether the purpose for which the tribunal was appointed has been carried out, and shall return the report to the tribunal for re-consideration if he is of opinion that the purpose has not been carried out; and when the report is in order the Chief Justice shall forward the report to the President who shall make such order as may be necessary to give effect to the report.

(4) Effect shall be given in a Province to any order made under this Article by the President, and any Act of the Provincial Legislature which is repugnant to the order shall, to the extent of the repugnancy, be void.

(5) An order by the President under this Article may be varied by the President



in accordance with an agreement made by the parties concerned.……….

Article 130 If at any time it appears to the President that the public interest would be served by the establishment of an Inter-Provincial Council charged with the duty of -

(a) investigating and discussing subjects in which the Provinces, or the Federation and one or both of the Provinces, have a common interest; or

(b) making recommendations upon any such subject and, in particular, recommendations for the better co-ordination of policy and action with respect to that subject;

the President may, with the consent of the Governors of the Provinces, establish such a Council and define the nature of the duties to be performed by it, and its organization and procedure.

……….Article 156 (1) Subject to the provisions of the Constitution, the Supreme Court

shall, to the exclusion of any other Court, have original jurisdiction in any dispute between-

(a) the Federal Government and the Government of one or both Provinces; or

(b) the Federal Government and the Government of a Province on the one side, and the Government of the other Province on the other or

(c) the Government of the Provinces,

if and is so far as the dispute involves-(i) any question whether of law or of fact, on which the, existence or

extent of a legal right depends; or(ii) any question as to the interpretation of the Constitution.

(2) The Supreme Court in the exercise of its original jurisdiction shall not pronounce any judgment other than a declaratory judgment.

……….Article 199 (1) As soon as may be after the Constitution Day, the President shall

constitute a National Economic Council, hereinafter to be called the Council, consisting of four Ministers of the Federal Government, three Ministers of each Provincial Government, and the Prime Minister, who shall be ex officio Chairman of the Council.

(2) The Council shall review the overall economic position of the country and shall, for advising the Federal and Provincial Governments, formulate plans in respect of financial, commercial and economic policies; and in formulating such plans, the Council shall aim at ensuring that uniform standards are attained in the economic development of all parts of the country.

(3) The Council may, from time to time, appoint such committees or expert



bodies as it considers necessary for the discharge of its functions.

(4) In the implementation of the aforesaid plans, the President shall take suitable steps to decentralise the administration by setting up, in each Province, necessary administrative machinery to provide the maximum convenience to the people; and expeditious disposal of Government business and public requirements.

(5) Nothing in this Article shall affect the exercise of the executive authority of the Federation or the Provinces.

(6) The Council shall submit every year to the National Assembly a report on the results obtained and the progress made in the achievement of its objects, and copies of the reports shall also be laid before each Provincial Assembly.

……….Article 200 (1) The President shall appoint a Board for each Province consisting of

representatives of the Federal Government and the Government of the Province, to advise the Federal Government on matters relating to Posts and Telegraphs in the Province.

(2) Notwithstanding anything in the Constitution, recruitment to posts and services, other than Class I, in the Posts and Telegraphs Department in a Province shall be made from amongst persons domiciled in that Province.

……….



Annex-BExcerpts from Constitution of Islamic Republic of Pakistan, 1962

Article 57 (1) The Supreme Court shall, to the exclusion of every other Court, have original jurisdiction in any dispute between one of the Governments and one or both of the other Governments.

(2) In the exercise of the jurisdiction conferred on it by this Article, the Supreme Court shall pronounce declaratory judgments only.

(3) In this Article, "the Governments" means the Central Government and the Provincial Governments.

……….Article 131 (1) The Central Legislature shall have exclusive power to make laws

(including laws having extra-territorial operation) for the whole or any part of Pakistan with respect to any matter enumerated in the Third Schedule.

(2) Where the national interest of Pakistan in relation to-(a) the security of Pakistan, including the economic and financial

stability of Pakistan;(b) planning or co-ordination; or(c) the achievement of uniformity in respect of any matter in different

parts of Pakistan;so requires, the Central Legislature shall have power to make laws (including laws having extra-territorial operation) for the whole or any part of Pakistan with respect to any matter not enumerated in the Third Schedule.

(3) If-(a) it appears to the Assembly of a Province to be desirable that a matter

not enumerated in the Third Schedule should be regulated in the Province by an Act of the Central Legislature; and

(b) a resolution to that effect is passed by the Provincial Assembly, the Central Legislature shall have power to make laws having effect in the Province with respect to that matter, but any law made in pursuance of this power may be amended or repealed by an Act of the Provincial Legislature.

(4) The Central Legislature shall have power (but not exclusive power) to make laws for the Islamabad Capital Territory and the Dacca Capital Territory with respect to any matter not enumerated in the Third Schedule.

(5) The Central Legislature shall have power to make laws for any part of Pakistan not forming part of a Province with respect to any matter.



Article 132- A Provincial Legislature shall have power to make laws for the Province, or any part of the Province, with respect to any matter other than a matter enumerated in the Third Schedule.

……….Article 144 (1) The President may, from time to time, constitute a National Finance

Commission for the purposes of clause (4) of this Article.

(2) The President shall constitute a National Finance Commission for the purposes of clause (6) of this Article not later than fifteen months before the expiration of each period specified by the National Economic Council under clause (5) of Article 145 (in this Article referred to as a "Plan period").

(3) A National Finance Commission shall consist of the Ministers in charge of the portfolios of Finance in the Central and the Provincial Governments and such other persons as, after consultation with the Governors of the Provinces, the President may appoint.

(4) A National Finance Commission constituted for the purposes of this clause shall make recommendations to the President with respect to-

(a) the distribution between the Central Government and the Provincial Governments of the proceeds (after deducting the cost of their collection) of the following taxes :-(i) Taxes on income, including corporation tax, but not including

taxes on income consisting of remuneration paid out of the Central Consolidated Fund :

(ii) Taxes on sales and purchases :-(iii) Export duty on jute and cotton, and such other export duties

as may be specified by the President;(iv) Such duties of excise imposed under a Central Law as may be

specified by the President:(v) Such other taxes as may be specified by the President;

(b) the making of grants-in-aid by the Central Government to the Provincial Governments;

(c) the exercise by the Central Government and the Provincial Governments of the borrowing powers conferred by this Constitution; and

(d) any other matter relating to finance referred to the Commission by the President.

(5) As soon as is practicable after receiving the recommendations of the Commission referred to in clause (4) of this Article, the President shall, after considering the recommendations, specify by Order the share of the proceeds of the taxes referred to in paragraph (a) of clause (4) of this Article which is to be allocated to each Provincial



Government, and that share shall be paid to the Government of the Province concerned, and notwithstanding Article 37, shall not form part of the Central Consolidated Fund.

(6) A National Finance Commission constituted for the purposes of this clause shall submit to the President, not later than six months before the expiration of the plan period during which it is constituted-

(a) a report on the progress made during that period in advancing the object referred to in clause (4) of Article 145; and

(b) recommendations as to the manner in which that object should be achieved in the next succeeding plan period.

(7) The President shall furnish a copy of the report and the recommendations submitted to him under clause (6) of this Article to the National Economic Council, which shall take those recommendations into account in formulating its plans.

(8) Any recommendations of a National Finance Commission furnished to the President shall, together with an explanatory memorandum as to the action taken on them, be laid before the National Assembly and before each of the Provincial Assemblies.

(9) The same Commission may be constituted for the purposes of clause (4) and clause (6) of this Article.

……….Article 145 (1) As soon as is practicable after the commencing day, the President

shall constitute a Council, to be known as the National Economic Council.

(2) The Council shall consist of such persons as are appointed to the Council by the President, who shall be members of the Council during the pleasure of the President.

(3) The Council shall, from time to time, and whenever so directed by the President, review the overall economic position of Pakistan, formulate plans with respect to financial, commercial and economic policies and the economic development of Pakistan and inform the Central and the Provincial Governments of those plans.

(4) A primary object of the Council in formulating the plans referred to in clause (3) of this Article shall be to ensure that disparities between the Provinces, and between different areas within a Province, in relation to incomes per capita, are removed and that the resources of Pakistan (including resources in foreign exchange ) are used and allocated in such manner as to achieve that object in the shortest possible time, and it shall be the duty of each Government to make the utmost endeavour to achieve that object.

(5) The plans formulated by the Council in pursuance of clause (3) of this



Article in relation to the economic development of Pakistan shall be formulated with respect to periods specified by the Council.

(6) The Council may, from time to time, appoint such committees or bodies of experts as it considers necessary to assist it in the performance of its functions.

(7) Nothing in this Article shall affect the exercise of the executive authority of the Central Government or of a Provincial Government.

(8) The Council shall submit every year to the National Assembly a report on the results obtained and the progress made in the achievement of the object referred to in clause (4) of this Article, and a copy of the report shall also be laid before each Provincial Assembly.

……….



Annex-CExcerpts from Constitution of Islamic Republic of Pakistan, 1973 (before

18th amendment)

70. Introduction and passing of Bills.- (1) A Bill with respect to any matter in the Federal Legislative List may originate in either House and shall, if it is passed by the Housein which it originated, be transmitted to the other House; and, if the Bill is passed without amendment by the other House also, it shall be presented to the President for assent.

(2) If a Bill transmitted to a House under clause (1) is passed with amendments it shall be sent back to the House in which it originated and if that House passes the Bill with those amendments it shall be presented to the President for assent.

(3) If a Bill transmitted to a House under clause (1) is rejected or is not passed within ninety days of its laying in the House or a bill sent to the House under clause (2) with amendments is not passed by that House with such amendment, the Bill, at the request of the House in which it originated, shall be considered in a joint sitting and if passed by the votes of the majority of the members present and the voting in the joint sitting it shall be presented to the President for assent.

(4) In this Article and the succeeding provisions of the Constitution, "Federal Legislative List" means the Federal Legislative List in the Fourth Schedule.

……………..90. The Federal Government.-(1) Subject to the Constitution, the executive

authority of the Federation shall be exercised in the name of the President by the Federal Government, consisting of the Prime Minister and the Federal Ministers, which shall act through the Prime Minister who shall be the chief executive of the Federation.

(2) In the performance of his functions under the Constitution, the Prime Minister may act either directly or through the Federal Ministers.

……………97. Extent of executive authority of Federation: Subject to the Constitution, the

executive authority of the Federation shall extend to the matters with respect to which 2[Majlis-e-Shoora (Parliament) has power to make laws, including exercise of rights, authority and jurisdiction in and in relation to areas outside Pakistan:

Provided that the said authority shall not, save as expressly provided -in the Constitution or in any law made by 1[Majlis-e-Shoora (Parliament)] extend in any Province to a matter with respect to which the Provincial Assembly has also power to make laws.

……………..99. Conduct of business of Federal Government.- (1) All executive actions of the



Federal Government shall be expressed to be taken in the name of the President.

(2). The 3[Federal Government] shall by rules specify the manner in which orders and other instruments made and executed 4[in the name of the President] shall be authenticated, and the validity of any order or instrument so authenticated shall not be questioned in any court on the ground that it was not made or executed by the President.

5[(3) The Federal Government shall also make rules for the allocation and transaction of its business]

……………..153 - Council of Common Interests (1). There shall be a Council of Common

Interests, in this Chapter referred to as the Council, to be appointed by the President.

(2). The members of the Council shall be -

(c) the Chief Ministers of the Provinces, and(d) an equal number of members from the Federal Government to be

nominated by the Prime Minister from time to time.

(3). The Prime Minister, if he is a member of the Council, shall be the Chairman of the Council but, if at any time he is not a member, the President may nominate a Federal Minister who is a member of the Council to be its Chairman.

(4). The Council shall be responsible to Parliament. ……….

154. Functions and rules of procedure.- (1) The Council shall formulate and regulate policies in relation to matters in Part II of the Federal Legislative List and, in so far as it is in relation to the affairs of the Federation, the matter in entry 34 (electricity) in Concurrent Legislative List, and shall exercise supervision and control over related institutions.

(2). The decisions of the Council shall be expressed in terms of the opinion of the majority.

(3). Until Parliament makes provision by law in this behalf, the Council may make its rules of procedure.

(4). Parliament in joint sitting may from time to time by resolution issue directions through the Federal Government to the Council generally or in a particular matter to take action as Parliament may deem just and proper and such directions shall be binding on the Council.



(5). If the Federal Government or a Provincial Government is dissatisfied with a decision of the Council, it may refer the matter to Parliament in a joint sitting whose decision in this behalf shall be final.

……….155 - Complaints as to interference with water supplies. - (1) If the interests of a

Province, the Federal Capital or the Federally Administered Tribal Areas, or any of the inhabitants thereof, in water from any natural source of supply have been or are likely to be affected prejudicially by-

(c) any executive act or legislation taken or passed or proposed to be taken or passed; or

(d) the failure of any authority to exercise any of its powers with respect to the use and distribution or control of water from that source;

the Federal Government or the Provincial Government concerned may make a complaint in writing to the Council


(3) Until Parliament makes provision by law in this behalf, the provisions of the Pakistan Commissions of Inquiry Act, 1956 (VI of 1956), as in force immediately before the commencing day shall apply to the Council or the Commission as if the Council or the Commission were a Commission appointed under that Act to which all the provisions of section 5 thereof applied and upon which the power contemplated by section 10-A thereof had been conferred.



(6) No proceeding shall lie before any court at the instance of any party to a matter which is or has been in issue before the Council, or of any person whatsoever, in respect of a matter which is actually or has been or might or ought to have been a proper subject of complaint to the Council under this Article.

……….



157 - Electricity. (1) The Federal Government may in any Province construct or cause to be constructed hydro-electric or thermal power installations or grid stations for the generation of electricity and lay or cause to be laid inter-Provincial transmission lines.

(2) The Government of a Province may -(e) to the extent electricity is supplied to that Province from the national

grid, require supply to be made in bulk for transmission and distribution within the Province;

(f) levy tax on consumption of electricity within the Province; (g) construct power houses and grid stations and lay transmission lines

for use within the Province; and(h) determine the tariff for distribution of electricity within the Province.

……….

184. Original jurisdiction of Supreme Court.-(1) The Supreme Court shall, to the exclusion of every other court, have original jurisdiction in any dispute between any two or more Governments.

Explanation.-In this clause, "Governments" means the Federal Government and the Provincial Governments.

(2) In the exercise of the jurisdiction conferred on it by clause (1) the Supreme Court shall pronounce declaratory judgments only.

(3) Without prejudice to the provisions of Article 199, the Supreme Court shall, if it considers that a question of public importance with reference to the enforcement of any of the Fundamental Rights conferred by Chapter 1 of Part II is involved, have the power to make an order of the nature mentioned in the said Article.

……….



Annex-DExcerpts from Rules of Business, 1973

Schedule 2

xxxxxxxxxxxxxxxxxx“2. Cabinet Division

1. All secretarial work for the Cabinet, Council of Common Interests, Inter-Provincial Conference, National Economic Council and their Committees; Secretaries' Committee.”

xxxxxxxxxxxxxxxxxx

“21. Procedure regarding Inter-Provincial Conference__ (1) Meetings of the Inter-Provincial Conference shall be convened by the Cabinet Division under the directions of the Prime Minister who shall preside at the meetings.

(2) Only cases of major importance which require policy decision and mutual discussion between the Federal and the Provincial Governments shall be brought before the Inter-Provincial Conference.

(3) The Federal and Provincial Ministers and officials of the Divisions concerned and of the Provincial Governments may be associated with the deliberations of the Conference as and when considered necessary.

(4) The provisions of rules 18 and 20 shall apply mutatis mutandis to the manner of submission of cases to, and the procedure for the meetings of, the Inter-Provincial Conference except that the summary shall reach the Cabinet Division at least 21 clear days in advance of the commencement of the Conference.

(5) Other instructions regarding the submission of cases to the Conference shall be issued by Cabinet Division.

……………

22. Procedure regarding National Economic Council.--(1) Meetings of the National Economic Council shall be convened by the Cabinet Division under the directions of the Prime Minister who shall preside at the meetings.

(2) The Federal and Provincial Ministers and officials of the Divisions concerned and of the Provincial Governments may be associated with the deliberations of the National Economic Council as and when considered necessary.

(3) The provisions of rules 18 and 20 shall apply mutatis mutandis to the



manner of submission of cases to, and the procedure for the meetings, of the National Economic Council except that the summary shall reach the Cabinet Division at least 21 clear days in advance of the commencement of the meeting.

(4) Other instructions regarding the submission of cases to the National Economic Council shall be issued by the Cabinet Secretary.

……………



RULES OF PROCEDURE OFTHE COUNCIL OF

COMMON INTERESTS (CCI)

(The Council approved its Rules of Procedure under Article 154(3) of the Constitution in its meeting

held on 12th January 1991)

GOVERNMENT OF PAKISTANCABINET SECRETARIAT

(Cabinet Division)

Annex-E



CABINET SECRETARIAT(Cabinet Division)

_____

In exercise of the powers conferred by Clause 3 of Article 154 of the Constitution of the Islamic Republic of Pakistan, the Council of Common Interests has made the following Rules of Procedure:-

RULE OF PROCEDURE OF THE COUNCILOF COMMON INTERESTS (CCI)

1. Short Title.- These rules may be called the "Rules of Procedure of the Council of Common Interests".

2. Commencement.- These rules shall come into force at once.

3. Definitions.- In these rules, unless the context otherwise requires:(a) "Article" means Article of the Constitution;(b) "Council" means the Council of Common Interests;(c) "Chairman" means Chairman of the Council;(d) "Secretary" means the Secretary to the Government of Pakistan in the

Cabinet Division.

4. Cases to be submitted to the Council.- Cases relating to formulation and regulation of policies in relation to the following matters and supervision and control over the related institutions shall be submitted to the Council :-

(a) Railways(b) Mineral oil and natural gas, liquids and substances declared by

Federal law to be dangerously inflammable.(c) Development of industries, where development under Federal

control is declared by Federal law to be expedient in the public interest; institutions, establishments, bodies and corporations administered or managed by the Federal Government immediately before the 14th August, 1973, including Water and Power Development Authority and the Pakistan Industrial Development Corporation; all undertakings, projects and schemes of such institutions, establishments, bodies and corporations; industries, projects and undertakings owned wholly or partially by the Federal or by a corporation set up by the Federation.



(d) Fees in respect of any of the matters specified above but not including fees taken in any court.

(e) Offenses against law with respect to any of the matters specified above.

(f) Inquiries and statistics for the purposes of any of the matters specified above.

(g) Matters incidental or ancillary to any of the matters specified above.(h) Electricity (entry 34 of Concurrent Legislative List).(i) Complaints as to interference with water supplies (Article 155 of the

Constitution).(j) Implementation of the directions given by the parliament for action

by the Council [Article 154(4) of the Constitution].

5. Meetings of the Council.- (1) The Chairman may from time to time summon a meeting of the Council to meet at such time and place as he thinks fit. There shall be at least one meeting of the Council in a year.

(2) When the Council is summoned, the Secretary shall intimate to each member the date, time and place of the meeting.

(3) If less than five members are present, the Chairman shall either adjourn the meeting of suspend the meeting until at least five members are present. of the five (5) members constituting the quorum for meetings of the Council, at least three shall be Chief Ministers of the provinces.

(4) The Chairman shall preside at every meeting of the Council.

6. Council may associate others concerned.- The Council may associate other Federal or Provincial Ministers and officials with its deliberations as and when considered necessary.

7. Committee of the Council.- The Council may constitute such committees to deal with specified matters as it may consider necessary from time to time and elect their members.

8. Preparation of Summaries.- A Summary for the Council should indicate :-(a) The name of the sponsoring Federal Division or Department of the

Provincial Governments.(b) Subject of the Summary.(c) Name and designation of the officer forwarding the Summary

(Secretary/Additional Secretary Incharge in the case of Federal Divisions and Chief Secretary/ Additional Secretary in the case of Provincial Government)



(d) The date of submission.

9. Heading of Summary.- The words "Summary for the Council of Common Interests" should invariably appear at a prominent place, above the subject.

10. Manner of preparing Summary.- All the Summaries should be self-contained, concise but lucid. Normally, the Summary should not exceed two printed foolscap pages (the annexes or appendices, if any, being in addition). The Summary itself should invariably be printed and marked 'Secret' unless the subject matter requires a higher Security grading. Each Summary should contain the facts of the case, the points for decision and the recommendation and 40 copies of the Summary should be sent to the Cabinet Division.

11. Consultation with authorities concerned.- Where a case concerns more than one Division or the Provinces, the Summary normally should not be submitted to the Council until it has been considered by the concerned. In case of dis-agreement, the points of difference should be stated in the Summary. The Provinces and the concerned Ministries/Divisions of the Federal Government should furnish their comments/views on the summaries for the Council circulated for the purpose, within two weeks. The requirement of prior consultation may be waived in very exceptional circumstances but the Summary mist, in that case, be sent to others concerned with the request to send their views (40 copies) direct to the Cabinet Division by a given date. The Cabinet Division would circulate the views, if received in time, alongwith or in continuation of the Summary.

12. Reference to previous decisions.- Where a reference is required to a previous decision, the decision should be reproduced in the body of the Summary provided it is a short one, otherwise a copy of the previous decision should be annexed as an appendix to the Summary. Summaries not conforming to the above instructions would not be accepted.

13. Matters not included in the agenda not to be discussed.- No case shall be discussed, nor any issue raised, in the meeting unless the Summary relating to it has been formally included in the agenda and circulated, except with the permission of the Chairman who may dispense with this requirements if he is satisfied that the circumstances were such that a working paper could not be supplied and the matter could brook no delay.

14. Action on decisions of the Council.- (1) The minutes of the meeting should be circulated by the Cabinet Division to all the members who shall return the same after perusal. The discrepancies, if any, shall be reported by the members within seven (7) days of the receipt of the minutes.



(2) The Cabinet Division shall also pass on the decisions of the Council to all concerned for necessary action but the primary responsibility for the proper implementation of the decision would be that of the sponsoring Secretary or Chief Secretary, who would ensure that the decisions had been duly passed on to all the agencies concerned.

(3) The record of discussion (minutes) of the meeting shall be treated as Secret. These shall be kept in the personal custody of the officer to whom those are sent and shall not be passed down unless these contain points which require further consideration or action in the Division or Provincial Department, in which case only relevant extracts from the minutes and not full minutes shall be passed down.

(4) The Cabinet Secretary shall watch the implementation of the decisions and the Secretary of the Division concerned or the Chief Secretary of the Provincial Government concerned shall supply to the Cabinet Secretary such documents as the latter may, be general or special request, require to enable him to complete his record of the case, and to satisfy himself that the decision has been fully implemented.

*****



Notification No.278/CF/74(CCI) dated 1974

The Prime Minister1

71

Annex-FComposition of the CCI since 1973 to 2006

Chairman

The Minister for Interior, States & Frontier Regions2 Member

The Minister for Food & Agriculture, Cooperative Works, Under-developed Areas and Land Reforms

3 Member

The Minister for Finance, Planning & Economic Affairs4 Member

The Chief Ministers of the Provinces5 Members

Notification No.88/CF/77 dated 18th May 1977

The Prime Minister1 Chairman

The Minister for Agriculture, Cooperatives and Land Reforms

2 Member

The Minister for Water and Power3 Member

The Minister for Information and Broadcasting4 Member

The Chief Ministers of the Provinces5 Members

Notification No.88/CF/77 dated 9th July 1977

The Chief Martial Law Administrator1 Chairman

The Secretary General-in-Chief2 Member

The Secretary General, Finance and Economic Co-ordination3 Member

The Secretary, Planning Division4 Member

The Chief Secretaries of the Provinces5 Members

Notification No.88/CF/77 dated 26th October 1978


The Minister for Finance and Coordination 2 Member

The Minister for Communications3 Member

The Minister for Railways4 Member

The Martial Law Administrators of Provinces 5 Members

Notification No.69/CS/79 dated 17th May 1979


The Minister for Finance, Planning, Commerce and Coordination

2 Member



The Minister for Railways, Local Government and Rural Development

3 Member



Notification No.69/CS/79 dated 1st October 1983


The Minister for Finance and Coordination 2 Member

The Minister for Railways 3 Member



Notification No.69/CS/79 dated 24th August 1985


Minister for Finance and Economic Affairs2 Member

The Minister for Railways3 Member


Chief Minister, Punjab5 Member

Chief Minister, Sindh6 Member

Chief Minister, NWFP7 Member

Chief Minister, Balochistan8 Member

Notification No.69/CS/79 dated 7th April 1986


Minister for Finance and Economic Affairs2 Member

The Minister for Commerce3 Member

The Minister for Water and Power4 Member





Notification No.69/CS/79 dated 21st May 1987


Minister for Finance & Economic Affairs and Petroleum & Natural Resources

2 Member

The Minister for Communications and Railways3 Member



The Minister for Food, Agriculture and Cooperatives4 Member





Notification No.69/CS/79 dated 21st March 1989

The Prime Minister1 Chairperson

Minister for Food, Agriculture and Cooperatives 2 Member

Adviser to the Prime Minister for Finance, Economic Affairs and Planning & Development

3 Member

Attorney General of Pakistan4 Member





Minister for Law and Justice may attend when Attorney General is absent.

Notification No.69/CS/79 dated 10th September 1990


Minister for Finance, Economic Affairs and Planning & Development

2 Member

Minister for Law, Justice and Parliamentary Affairs3 Member

Minister for Labour, Manpower and Overseas Pakistanis4 Member





Notification No.69/CS/79 dated 11th December 1990


Minister for Finance and Economic Affairs 2 Member

Minister for Law, Justice and Parliamentary Affairs3 Member

Minister for Railways4 Member







74

Notification No.69/CS/79 dated 16th May 1993


Minister for Finance 2 Member

Minister for Petroleum and Natural Resources3 Member

Minister for Defence4 Member






Minister for Communications and Railways 1 Chairman

Minister for Finance & Economic Affairs and Planning & Development

2 Member

Minister for Food, Agriculture & Cooperatives, Local Government & Rural Development and Works

3 Member

Minister for Water and Power 4 Member






Minister for Finance, Economic Affairs and Statistics 1 Chairman

Minister for Commerce 2 Member

Minister for Railways 3 Member

Minister of State for Water and Power 4 Member







Notification No.69/CS/79 dated 21st December 1998

Chief Minister, Punjab1

Chief Minister, NWFP2

Chief Minister, Balochistan3

Chief Minister, Sindh4

Minister for Finance, Economic Affairs and Statistics5

Minister for Commerce6

Minister of State for Water and Power7

Minister of State for Housing and Works8

2nd August, 2006


Minister for Inter-Provincial Coordination2 Member

Minister for Narcotics Control3 Member

Minister for States and Frontier Regions4 Member







RULES OF PROCEDURE OF THE COUNCIL OF

COMMON INTERESTS (CCI)2010

GOVERNMENT OF PAKISTAN MINISTRY OF INTER PROVINCIAL COORDINATION

(IPC DIVISION)

Annex-G



GOVERNMENT OF PAKISTAN MINISTRY OF INTER PROVINCIAL COORDINATION

(IPC DIVISION)***

In exercise of the powers conferred by clause 5 of Article 154 of the Constitution of the Islamic Republic of Pakistan, the Council of Common Interests has made the following Rules of Procedure, namely :-

RULES OF PROCEDURE OF THE COUNCIL OF COMMON INTERESTS

1. Short Title and commencement. – (1) These rules shall be called the Rules of Procedure of the Council of Common Interests, 2010.

(2). These rules shall come into force at once.

2. Definitions.- In these rules, unless there is anything repugnant to the subject or context;-

a) "Article" means an Article of the Constitution;b) "Chairman" means the Chairman of the Council of Common

Interests;c) "Constitution" means the Constitution of the Islamic Republic of

Pakistan;d) "Council" means the Council of Common Interests constituted under

Article 153;e) "department” means a department of a Provincial Government;f) “Division” means a self-contained administrative unit of the Federal

Government responsible for the conduct of its business in a distinct and specified sphere and declared as such by the Federal Government;

g) “Federal Government" means the Government of Pakistan;h) "Provincial Government" means the Government of a Province;i) “Secretariat” means the Secretariat of the Council established under

rule 3;j) "Secretary" means the Secretary of the Council appointed under

rule 3; andk) “Schedule” means schedules to these rules.

3. Secretariat of the Council.- (1) There shall be a permanent Secretariat of the Council. The Federal Government, with the approval of the Chairman, shall appoint Secretary of the Council:



Provided that till such time a separate Secretariat is established, the Inter Provincial Coordination Division of the Federal Government shall act as the Secretariat of the Council and till such time a Secretary of CCI is appointed the Secretary, Inter Provincial Coordination Division shall act as Secretary of the Council.

(2) The Secretary shall be the administrative head of the Secretariat of the Council and shall be responsible for its efficient functioning.

(3) The Secretary shall appoint such other officers and officials for the Secretariat, as he may think appropriate, in accordance with the rules prescribed by the Council:

Provided that appointment to the posts in BS-20 and above shall be made with the approval of the Chairman:

Provided further that representation of all the Provinces and regions in the service of the Council shall be ensured on the basis of provincial and regional quotas.

4. Functions of the Council.- The Council shall formulate and regulate polices in respect of matters given in the Schedule I and shall exercise supervision and control over related institutions.

5. Meetings of the Council.- (1) The Chairman may summon the meetings of the Council, to meet at such time and place as he thinks fit.

(2) The Council shall meet at least once in ninety days:

Provided that the Chairman may convene a meeting on the request of a Province on an urgent matter.

(3) The meetings of the Council shall be attended by its members.

(4) The Chairman may permit any other Federal Minister, or a Provincial Minister and any official to attend the meeting of the Council by special invitation.

(5) In a meeting of the Council, four members, shall form the quorum; provided that at least two Chief Ministers are present:

Provided further that a matter relating to a Province shall not be discussed unless the Chief Minister of that Province is present in the meeting. .



(6) No case shall be discussed nor any issue be raised in a meeting unless summary relating to it has first been circulated:

Provided that the Chairman may dispense with this requirement in exceptional circumstances.

(7) Notice for the meeting shall ordinarily be issued at least ten working days in advance.

(8) For inclusion in the agenda of a meeting summary relating to the case shall reach the Secretary at least fifteen days in advance of the meeting:

Provided that, if a case is urgent and is required to be taken up at a short notice, the Secretary of Division or Chief Secretary of the concerned Province shall obtain approval of the Chairman for its inclusion in the agenda before it is transmitted to the Secretary.

(9) The Secretary of the Division or Chief Secretary of the Province concerned shall attend the meeting of the Council for the purpose of the case relating to his Division or Province. However, these officers may be asked to withdraw from the meeting before the Council starts discussion on the issue.

(10) The decisions of the Council shall be expressed in terms of the opinion of the majority.

6. Circulation and confirmation of minutes and decisions.- The Secretary shall circulate to the members, within seven working days of the meeting, a copy of the minutes and decisions of the Council for perusal. The members shall return the aforesaid copy of the minutes and decisions to the Secretary within fifteen working days of issue. The Secretary shall also supply to the Secretary of the Division or the Chief Secretary of the Province concerned for action, a copy of the relevant decision of the Council, and wherever considered necessary, of the relevant excerpts of the points made during the discussion.

7. Committees of the Council.- The Council may constitute its standing committees or special committees laying down their terms of reference and membership.

8. Procedure regarding Committees of the Council.- Meetings of a Committee of the Council shall be convened by the chairperson of the Committee concerned who shall also preside over such meetings:

Provided that the procedure for the meetings of the Council shall apply mutatis mutandis for the meetings of the Committees except that the recommendations of the



Committee shall be placed before the Council.

9. Cases to be submitted to the Council.- The Council shall consider the cases mentioned in Schedule-I of these rules or those notified by the Federal Government from time to time in the Gazette of Pakistan .

10. Manner of submission of cases to the Council.- The manner of submission of the cases before the Council and preparation of summaries therefor shall be as given in Schedule-II and Schedule-III to these rules, respectively or as notified by the Secretariat from time to time.

11. Implementation of decisions of the Council.- (1) When a case has been decided by the Council, the Federal Government or Provincial Government concerned shall take prompt action to give effect to the decision unless it conveys its intention to make reference to the Parliament within fifteen days of its communication.

(2) When the decision of the Council is received by the Secretary of the Division or the Chief Secretary of the concerned Province, he shall –

(a) acknowledge the receipt of the decision in the form provided;(b) transmit the decision to his Division or Department for action;(c) keep a register with him of the decisions received, for the

purpose of ensuring that prompt and complete action is taken on those decisions; and

(d) coordinate action with any other Division or a Province, which may be concerned with the decision.

(3) The Secretary shall monitor the implementation of decisions and the Secretary of the Division or Chief Secretary of a Province concerned shall supply to the Secretary such documents as the latter may, by general or special request, require, enabling him to complete his record of the case and to satisfy himself that the decision of the Council has been fully implemented.

12. Correction of minutes and decisions of the Council.- If a Member considers that there has been a mistake or omission in recording the minutes or decisions of the Council, he shall point it out to the Secretary in writing within fifteen working days of their issuance. The Secretary shall obtain orders of the Chairman and circulate the same to Members.

13. Reference against the decisions of the Council.- If the Federal Government or a Provincial Government is not satisfied with a decision of the Council, it may refer the matter to the Parliament in a joint sitting whose decision in this behalf shall be final.

14. Repeal.- The Rules of Procedure for the Council of Common Interests 1991, are hereby repealed.



SCHEDULE-I

[See rule 4]

CASES TO BE SUBMITTED TO THE COUNCIL

(1) Railways;

(2) Mineral oil and natural gas, liquids and substances declared by Federal law to be dangerously inflammable;

(3) Development of industries, where development under Federal control is declared by Federal law to be expedient in the public interest; institutions, establishments, bodies and corporations administered or managed by the Federal Government immediately before the commencing day, including Water and Power Development Authority and Pakistan Industrial Development Corporation and all undertakings, projects and schemes of such institutions, establishments, bodies and corporations; industries, projects and undertakings owned wholly or partially by the Federation or by a corporation set up by the Federation;

(4) Electricity;

(5) Major ports, that is to say, the declaration and delimitation of such ports, and the constitution and powers of port authorities therein;

(6) All regulatory authorities established under a Federal law;

(7) National planning and national economic coordination including planning and coordination of scientific and technological research;

(8) Supervision and management of public debt;

(9) Census;

(10) Extension of the powers and jurisdiction of members of a police force belonging to any Province to any area in another Province, but not so as to enable the police of one Province to exercise powers and jurisdiction in another Province without the consent of the Government of that Province; extension of the powers and jurisdiction of members of a police force belonging to any Province to railway areas outside that Province;

(11) Legal, medical and other professions;

82



(12) Standards in institutions for higher education and research, scientific and technical institutions;

(13) Inter-provincial matters and co-ordination;

(14) Council of Common Interests;

(15) Fees in respect of any of the matters specified in Part-II of the Federal Legislative List but not including fees taken in any court;

(16) Offenses against laws with respect to any of matters in Part-II of the Federal Legislative List;

(17) Inquiries and statistics for the purposes of any of the matters in Part-II of the Federal Legislative List;

(18) Matters incidental or ancillary to any matter enumerated in Part-II of the Federal Legislative List;

(19) Complaints as to interference with water supplies (Article 155);

(20) Implementation of the directions given by the Parliament for action by the Council under Article 154(6);

(21) Submission of Annual Report to both Houses of Parliament (Article 153(4);

and

(22) Resolution of disputes with respect to construction of Hydro electric station in any Province (Article 157(3).

83



SCHEDULE-II[See rule 10]

MANNER OF SUBMISSION OF CASES TO THE COUNCIL

1. In respect of all cases to be submitted to the Council, Secretary of the Division or Chief Secretary of the Province concerned, shall transmit to the Secretary a concise, lucid and printed Summary, giving the background and relevant facts, points for decision and recommendations of the Federal Government or Provincial Government concerned, as the case may be.

2. The Summary shall be self-contained as far as possible, not exceeding two printed pages and may include as appendices only such relevant papers as are necessary for proper appreciation of the case.

3. Where a reference is made to a previous decision of the Council, the decision of the Council shall invariably be reproduced in the Summary or annexed to it.

4. Where a case concerns more than one Division or the Province, the Summary shall normally not be submitted to the Council until it has been considered by the Divisions and/or the Provinces concerned. In case of difference of opinion, the point of difference should be stated in the Summary.

5. The Provinces and the Divisions concerned of the Federal Government should furnish their comments or views on the summaries for the Council circulated for the purpose, within two weeks. The requirements of prior consultation may be waived in very exceptional circumstances but the Summary must, in that case, be sent to others concerned with the request to send their views direct to the secretariat of the Council by a given date. The secretariat would circulate the views, if received in time, alongwith or in continuation of the Summary.

6. It shall be the duty of the Secretary to satisfy himself that the summary submitted by the Federal or a Provincial Government is complete and in the prescribed form. He may return a case until the requirements of these rules, have been complied with.

84



SCHEDULE-III[See rule 10]

PREPARATION OF SUMMARIES AND DOCUMENT

A Summary for the Council shall include-

(a) name of the sponsoring Division of the Federal Government or Department of the Provincial Government;

(b) subject of the case; (c) name and designation of the officer submitting the Summary

(Secretaries/Additional Secretaries-in-Charge of Divisions concerned in case of Federal Government and Chief Secretaries in case of Provincial Government);

(d) place and date of submission; and(e) serial number.

(2) The words "SUMMARY FOR THE COUNCIL OF COMMON INTERESTS" shall invariably appear at a prominent place, above "Subject". It shall be marked as "SECRET" at the top right corner on first page.

(3) All papers submitted to the Council shall be marked “SECRET” until discussion on them has taken place in the meeting. Thereafter, unless the Council has decided otherwise, the sponsoring Government shall decide the de-classification of these documents under intimation to the secretariat.

(4) The members shall return to the Secretary -(a) the summaries supplied to them for decision by discussion in a meeting of

the Council or a Committee of the Council immediately after the discussion has taken place; and

(b) minutes and decisions circulated by the Secretary immediately after they have perused them, but not later than fifteen days.

[F.No.1(1)/2010-IPC-III date 19th July, 2010]

QURAT-UL-AIN,Deputy Secretary (IPC)

85

Mr. Ahmed Mahmood Zahid is a law graduate and joined the Civil Services of Pakistan in 1976. He has served as both Provincial and Federal Secretary. In addition to his experience as a senior civil servant his close association with the process of devolution following the 18th Amendment makes him a valuable resource on the subject. He was Secretary Ministry of Inter Provincial Coordination as well as being associated with the Implementation Commission of the 18th Amendment. After his retirement, he worked as expert with the commission till June 2011.

Documents

Institutional Analysis of Council of Common Interests (CCI)