The constitution should provide for a Federation of Pakistan in its true sense based on the Lahore Resolution and the parliamentary form of government with supremacy of a Legislature directly elected on the basis of universal adult franchise.
The federal government should deal with only two subjects: Defence and Foreign Affairs, and all other residual subjects should be vested in the federating states.
Two separate, but freely convertible currencies for two wings should be introduced; or if this is not feasible, there should be one currency for the whole country, but effective constitutional provisions should be introduced to stop the flight of capital from East to West Pakistan. Furthermore, a separate Banking Reserve should be established and separate fiscal and monetary policy be adopted for East Pakistan.
The power of taxation and revenue collection should be vested in the federating units and the federal centre would have no such power. The federation would be entitled to a share in the state taxes to meet its expenditures.
There should be two separate accounts for the foreign exchange earnings of the two wings; the foreign exchange requirements of the federal government should be met by the two wings equally or in a ratio to be fixed; indigenous products should move free of duty between the two wings, and the constitution should empower the units to establish trade links with foreign countries.
East Pakistan should have a separate militia or paramilitary force......
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