ACCORDING to Article 7 of Pakistan’s Constitution, the state “means the Federal Government, [Majlis-e-Shoora (Parliament)], a Provincial Government, a Provincial Assembly, and such local or other authorities in Pakistan as are by law empowered to impose any tax or cess”. This means the state of Pakistan is composed of three integral components — federal, provincial and local governments. Articles 32 and 140-A of the Constitution endorse this status.

A close look at Article 160 makes for interesting reading. It says: “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 Provincial Government.”

The question that arises here is: when there are three shareholders of the state — federal, provincial and local govern-

ments — why is it that National Finance Commission (NFC) funds (taxes) are shared only between two of them? Is there some anomaly and violation of the Constitution?

Syed Sardar Ahmad
Karachi

Published in Dawn, August 16th, 2026