Background

In Pakistan, natural resources especially mineral oil and natural gas being part of the Federal Legislative List were exclusively owned and regulated by the Federal Government. However, under Article 161 of the Constitution net proceeds of the federal duty of excise on natural gas levied at well-head as well as the royalty collected by the Federal Government, have to be paid to the Province in which the well-head is situated. Under Article 158 of the Constitution, the Province in which a well-head of natural gas is situated has precedence over other parts of Pakistan in meeting the ...