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Federal govt’s unlawful holding back 17 dissolved ministries pushing nation into debt trap: Senate panel observes

Sub -committee directs govt to abolish dissolved ministries to save trillions of rupees

ISLAMABAD, AUGUST 17, 2026 — The Senate Sub-Committee on Devolution, chaired by Senator Barrister Zamir Hussain Ghumro alongside Senators Poonjo Bheel, Jan Muhammad Buledi, convened today at Parliament House to address the downsizing of the federal government and the mandate of the Council of Common Interests (CCI).

The committee discusses the critical legal, sectoral, and historical directives regarding constitutional devolution and federal downsizing.

Convener of the committee briefed that Under Article 270AA of the Constitution, notifications issued between December 2010 and June 2011 directed the complete transfer of concurrent legislative subjects and the abolition of 17 federal ministries. The committee observed that maintaining federal authority over these provincial subjects was unconstitutional even before the 18th Amendment. By retaining these ministries, the federal government is paying Rs.8 trillion interest on loans, driving the nation into a severe debt trap.

The committee observed that the CCI Authority and Safeguarding Smaller Province Placing subjects listed under Part II of the Federal Legislative List under the Council of Common Interests (CCI) via Article 154 serves as a vital constitutional safeguard. This structure protects smaller provinces from majoritarian decisions made by the Federal Cabinet, given that Punjab holds 141 seats in the National Assembly compared to the combined 122 seats of the remaining three provinces. Such safeguard was provided to the provinces against majoritarianism. Constitutions says that matters related to Federal legislative list part II shall be the responsibility of CCI rather than Federal cabinet. Key entities—including Railways, Port Authorities, Planning & Development Authorities, and regulatory agencies—must be handed over to the CCI rather than the Federal Cabinet. Furthermore, the committee rejected the federal government’s reliance on the 1997 Supreme Court Gadoon Amazai ruling, noting that Parliament resolved issues regarding CCI meeting frequency by legally requiring the CCI to convene at least once every three months or earlier in urgent matters.

Committee has directed that the matters of CCI shall not be taken in Federal Cabibet because it has barred under the Constitution. Prime Minister must take up such matters in CCI as it badly affects the rights of provinces and call frequent meetings of CCI.

Committee Convener further said that CCI shall be reconstituted ensuring equality of Provinces. Prices of electricity, Petroleum, gas and medicines shall be supervised and controlled by CCI instead of Federal Cabinet as its executive authority is subject to Constitution which means Article 154 which gives such power to CCi.
On Sectoral Directives on Power, Media, and Retained Ministries, regarding the power sector, the sub-committee ruled that any privatization of electricity distribution companies (such as IESCO, FESCO, LESCO, GESCO, SEPCO, and HESCO) by the Power Division or Privatization Commission without CCI consent directly violates Articles 154 and 157. In the media sector, telecasting and broadcasting under Article 159 were not fully devolved initially due to lack of provincial requests; provincial representatives have now been given one week to submit formal requests if legislative transfers or constitutional amendments are needed.

The committee also criticized the practice of withholding government advertisements to pressure media outlets like Dawn. Finally, the committee clarified that retaining nationwide ministries like Education, Health, Environment, and EOBI under the guise of managing Islamabad Capital Territory (ICT) affairs is invalid, as ICT matters fall strictly under the ICT Division. The overall objective remains empowering the provinces, reducing federal expenditure, and strengthening fiscal independence to lessen reliance on IMF bailouts, with the federal government given 15 days to amend its Rules of Business accordingly and send its report back to committee.

The committee disapproved the federal government for retaining authority over subjects belonging to provincial domains and Part II of the Federal Legislative List—such as Railways, Petroleum, Electricity, Ports, and regulatory bodies like OGRA, NEPRA, PEMRA, and PTA etc., which under Article 154 fall under the purview of the CCI to protect provincial rights. It emphasized that federal cabinet interference in these domains violates Article 97 read with Article 154 of the Constitution. Consequently, the sub-committee directed that unconstitutionally retained federal ministries, divisions, and state-owned enterprises created on provincial or CCI subjects be immediately shut down or devolved without adversely affecting employees, and urged the federal government to amend its Rules of Business accordingly within 15 days.
Following are the Ministries/ Institutions and Organizations which includes Health, Education, National, Food Security, Water Resources, Climate Change (previously Environment), Housing, Special Initiatives, Culture and Heritage, Evacuee Trust Board, Zakat and Ushur (collection of) , Naya Pakistan Housing Authority, EOBI, Narcotics, Police Service, PMDC, Korangi Fish Harbor, Press Information Department (PID, including regulation of Print Media), SIDCL, Railways, Industries, Statistics, Petroleum, Inter-Provincial Coordination , Planning and Development and WAPDA.

The committee also emphasis that Federal govt must curtail its expenditure from present Rs.19 trillion to Rs.13 trillion because tax and non-tax revenue of the Country is Rs.20 trillion and the Country can’t afford such colossal expenditure. It directed that matter of privatization of DISCOS shall be sent to the CCI as per Judgement of Supreme Court in Mian Nawaz Sharif case in 1993.

Committee has directed that regulation of print media maters shall be pass to to Provinces. Committee has asked the information ministry to give last three years detail of release of ads to Newspapers and Channels. Committee was attended by senior officials of all relevant departments.

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