Point 1

Original: The constitution should provide for a Federation of Pakistan in its true sense on the basis of the Lahore Resolution, and Parliamentary form of Government with supremacy of Legislature directly elected on the basis of universal adult franchise.

Amended: The character of the government shall be federal and parliamentary, in which the election to the federal legislature and to the legislatures of the federating units shall be direct and on the basis of universal adult franchise. The representation in the federal legislature shall be on the basis of population.

Point 2

Original: Federal government shall deal with only two subjects, viz. Defence and Foreign Affairs, and all other residuary subjects shall vest in the federating states.

Amended: The federal government shall be responsible only for defence and foreign affairs and, subject to the conditions provided in (3) below, currency.

Point 3

Original: 1. Two separate but freely convertible currencies for two wings may be introduced, or

              2. One currency for the whole country may be maintained. In this case effective constitutional provisions are to be made to stop flight of capital from East to West Pakistan. Separate Banking Reserve is to be made and separate fiscal and monetary policy to be adopted for East Pakistan.

Amended: There shall be two separate currencies mutually or freely convertible in each wing for each region, or in the alternative a single currency, subject to the establishment of a federal reserves system in which there will be regional federal banks which shall devise measures to prevent the transfer of resources and flight of capital from one region to another.

Point 4

Original: The power of taxation and revenue collection shall vest in the federating units and that the Federal centre will have no such power. The Federation will have a share in the state taxes for meeting their required expenditure. The Consolidated Federal Fund shall come out of a levy of certain percentage of all state taxes.

Amended: Fiscal policy shall be the responsibility of the federating units. The federal government shall be provided with requisite revenue resources for meeting the requirements of defence and foreign affairs, which revenue resources would be automatically appropriable by the federal government in the manner provided and on the basis of the ratio to be determined by the procedure laid down in the Constitution. Such constitutional provisions would ensure that the federal government’s revenue requirements are met consistently with the objective of ensuring control over the fiscal policy by the governments of the federating units.

Point 5

Original: 1. There shall be two separate accounts for foreign exchange earnings of the two wings.

              2. Earnings of East Pakistan shall be under the control of East Pakistan Government and that of West Pakistan under the control of West Pakistan Government.

              3. Foreign exchange requirement of the Federal government shall be met by the two wings either equally or in a ratio to be fixed.

             4. Indigenous products shall move free of duty between two wings.

             5. The Constitution shall empower the unit Governments to establish trade and commercial relations with, set up trade missions in and enter into agreements with, foreign countries.

Amended: Constitutional provisions shall be made to enable separate accounts t be maintained of the foreign exchange earnings of each of the federating units, under the control of the respective governments of the federating units. The foreign exchange requirements of the federal governments shall be met by the governments of the federating units on the basis of a ration to be determined in accordance with the procedure laid down in the constitution. The Regional Governments shall have power under the Constitution to negotiate foreign trade and aid within the framework of the foreign policy of the country, which shall be the responsibility of the federal government.

Point 6

Original: The setting up of a militia or a paramilitary force for East Pakistan.

Amended: The governments of the federating units shall be empowered to maintain a militia or paramilitary force in order to contribute effectively towards national security.