Prime Minister Shehbaz Sharif made his intentions clear last week with regards to cutting down the size of the federal government. In a letter to five different ministries including health and IT, the prime minister asked each to justify their existence by preparing a detailed summary of their duties and budgets.
It is an interesting move from a prime minister who had a cabinet of over 80 members in his last tenure as PM. Back then he claimed it was a necessary evil of a coalition government. But this time around his coalition is even weaker and he has trimmer his cabinet down to a lean 20 members in total. Some of this may have to do with the IMF, which wants Pakistan to reduce the size of its government.
The American influence in the IMF is clear. Ronald Reagan, the 40th President of the United States, famously said that government was not the solution, it was the problem. In Regan’s mind, the American government was too big, it spent too much money, and was far too involved in the lives of its citizens.
In Pakistan’s context, a big problem is that despite the 18th amendment devolution of powers has not taken place in letter or in spirit. Provincial governments are empowered with matters such as health, education, and agriculture but the federation holds ministries for all three as well as the fact that no local governments exist.
Just look at the issue of taxation. The government’s revenue division collects tax through the FBR and it is even divided through the NFC awards. Constitutionally, taxation needs to be devolved not to the provinces but also local governments. In fact, property tax, agricultural tax and many others are supposed to be collected and spent by local governments.
While shedding the weight of the federal government is a good step, it is only one step. True balance can only be reached through devolution.
