Point 4: Power of taxation and revenue collection shall vest in the federation units and the Federal center shall have no shall power. The Federation shall 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.
Point 5: (1) There shall be two separate accents of foreign exchange earnings of the two wings:
(2) Earning of East Pakistan shall be under the control of the East Pakistan Government and that of West Pakistan under the control of the West Pakistan Government
(3) Foreign exchange requirement of the Federal Government shall be met by the two wings either equally or in a ration 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
Point 6: A militia or Para military force shall be set up for East Pakistan
Point No. 1 gave expression to the basic demand for a parliamentary form or government to which almost everyone was committed. It acquired special significance in the context of the fact that in 1966. Ayub was governing under constitution which provided for an all powerful president in a presidential form of government. The demand for a federation on the basis of the Lahore resolution underlined the important point that the Resolution had contemplated that the Muslim majority provinces would be constituted into Sovereign autonomous states The Resolution thus provided the basis for the claim that the constituent units of Pakistan as envisaged by that resolution would be sovereign from this it followed that any association between them cloud only be on the basis of an agreement freely and voluntarily arrived at any federation which they agreed to form would be of such character as they agreed to give to it. There could be on preconceived model which could be thrust on them. Any federal government would only have such powers as were conferred on them by the sovereign constituent units. The sovereign units were free to concede as much as little to a federal government and could not be compelled to cede more to it than they consented to. In forming a federation the situation would not be one of previously unitary system being transformed into a federal one, through devolution of certain powers on organs of the constituent units as had taken place in British India under the Government of India Act, 1935 but a true federation where the constituent units by their common consent created a federal government by ceding, to it or conferring on it some of its powers.
This basic position was perhaps deliberately obscured in the twenty four years following the partition of India in 1947, when those who took it upon themselves to impose a constitution for Pakistan stood things on their head by thinking in term of grants of power to the provinces and not of sovereign constituent units granting powers
