But, as to the monies the USA provides to Pakistan; if they are gone, then what? Worried? For Pakistanis? Or the USA military?
Don't be. Tillerson has it all worked out. See, when the USA monies dry up, Exxonmobile is willing to share.
17 July 2017
By Babar Ayar
The good news for the local governments (click here) in Khyber Pakhtunkhwa (KP) is that the Peshawar High Court (PHC) has directed the provincial government to constitute petroleum social development committees in each oil and gas producing district. These committees should decide about the oil and gas royalties and production bonuses payable by the exploration companies.
The idea was first mooted by me in March 2005 at the NWFP Investment Conference, that a sizeable share of the royalties on oil, gas and minerals should be shared with the districts which produce this natural wealth.
It was at the inauguration of the conference that I presented my thoughts of sharing royalties with the districts from where the natural resources were exploited. The News’ Rahimullah Yousafzai reported it as a separate news item. Then Prime Minister Shaukat Aziz who inaugurated this conference appreciated the idea, but later told me that the decision on this should be taken by provincial governments as the total royalty produce by a province is given to them by the federal government.
The crucial missing element has always been that the taxes and royalties collected from the natural resources such as mining, oil and gas exploration and production, seaports, etc. do not flow down to the real owners of this wealth. The centre shares the royalty on the oil and gas production but the provinces do not share it with the districts from where these resources are being exploited. Bear in mind that incidentally most of such resources are found in the most underdeveloped areas of the country.
As the money earned from the royalties and bonuses go to the provincial government, the districts where these resources are found and produced do not get much benefit from the exploitation of the natural resources. If these royalties and bonuses are shared with the local government of the area where they are produced, it will make the people of these areas hospitable to the exploration and production companies.
The counter argument given by those who usurp the local government’s rights is that such huge revenue sources cannot be left to the local government where they may be plundered by the district or tehsil level leadership. This is a frivolous argument. It would only hold water if provincial governments are also very clean and efficient. The media unfortunately does not follow-up on the progress of the development projects and therefore fails to play the role of a vigilant watchdog.
The provinces, with the exception of the KP government, had failed to update the Provincial Finance Commissions....
