Sources said Wednesday's meeting of the Parliamentary Committee discussed Article-166 and 167 of the Constitution relating to the borrowing by Federal Government and provincial governments. They said most of the members suggested that the CCI should be strengthened extending its authority to resolve disputes among the provinces as an independent body.
They said the provinces have to get permission from the federal government in case of borrowing from any source/donor. Parliamentarians emphasised that the authority of the permission to get loan from any source should be given the CCI, sources added.
The sources said the committee has unanimously decided to make CCI as separate and independent institution, having representation of all the provinces and is best suited to resolve all disputes among the provinces on sustainable basis developing consensus. The committee discussed the issue of provincial autonomy at length as small issues are magnified out of proportion and a consensus body is required to address and resolve them urgently for creating harmony among the federating units.
While answering question about federal legislative and concurrent lists, the sources said the committee has already recommended abolition of concurrent list with the consent of majority members. They said the committee would thoroughly discuss Federal Legislative Lists in a meeting on Thursday.
Answering another question, sources said the members belonging to Sindh particularly MQM have proposed collection of Value Added Tax on services through its own resources. The committee will meet today (Thursday) at 2pm at Parliament House for further discussion on provincial autonomy
Following is the text of Artilc-166 and 167 of the Constitution on Borrowing by Federal Government and provincial governments. "The executive authority of the Federation extends to borrowing upon the security of the Federal Consolidated Fund within such limits, if any, as may from time to time be fixed by Act of [155] [Majlis-e-Shoora (Parliament)], and to the giving of guarantees within such limits, if any, as may be so fixed."
-- Similarly, according to Article-167.
-- Borrowing by Provincial Governments.
"(1) Subject to the provisions of this Article, the executive authority of a Province extends to borrowing upon the security of the Provincial Consolidated Fund within such limits, if any, as may from time to time be fixed by Act of the Provincial Assembly, and to the giving of guarantees within such limits, if any, as may be so fixed.
"(2) The Federal Government may, subject to such conditions, if any, as it may think fit to impose, make loans to, or so long as any limits fixed under Article 166 are not exceeded give guarantees in respect of loans raised by, any province, and any sums required for the purpose of making loans to a province shall be charged upon the Federal Consolidated Fund."
"(3) A Province may not, without the consent of the Federal Government, raise any loan if there is still outstanding any part of a loan made to the province by the Federal Government, or in respect of which guarantee has been given by the Federal Government; and consent under this clause may be granted subject to such conditions, if any, as the Federal Government may think fit to impose."