NA flouts SC orders as it approves summary seeking non-provision of election funds

Neither the SBP nor the Finance Divison has the authority to allocate funds from the FCF

ISLAMABAD (Dunya News) – National Assembly (NA) on Monday approved a summary, sent by the NA Standing Committee on Finance and Revenue, recommending non-provision of funds for elections to the Election Commission of Pakistan (ECP). 

Earlier, the issue of allocation of funds for holding elections in Punjab and Khyber Pakhtunkhwa became more complicated as the committee sent the summary, presented by federal law minister Azam Nazir Tarar before the NA, to the federal cabinet which, in turn, sent it back to the parliament.

This was announced by Minister of State for Finance and Revenue Dr Aisha Ghaus-Pasha after the meeting of the Standing Committee on Finance. She said neither the SBP nor the Finance Divison had the authority to allocate funds from the Federal Consolidated Fund. 

She said the allocation of funds required approval from parliament. “Without the approval of parliament, no bill or budget has any legal authenticity." 

“Hence, we leave the matter up to parliament now. Parliament is supreme for us because this is what is written in the constitution.”

Regarding today's (Monday) meeting, she explained that the SBP could only allocate the money but could not release it. 

The Finance Division can only act on the orders of the federal cabinet. It is up to the cabinet to take the matter to parliament … if parliament approves, the funds will be disbursed today, she added.

Meanwhile, Mr Tarar, while addressing the NA session, maintained that the SBP was not authorised to release funds adding that it was the prerogative of the NA and the ministry of finance and revenue.

Standing Committee meeting 

Earlier, SBP Acting Governor Sima Kamil on Monday, while briefing the National Assembly’s Standing Committee on Finance, said the State Bank of Pakistan (SBP) had allocated Rs21 billion for elections in the Punjab and Khyber Pakhtunkhwa as directed by the Supreme Court but it had no authority to release the amount. 

This Standing Committee met to review the latest situation as the deadline set by the apex court expires today. The meeting was held with committee Chairman Qaiser Ahmed Sheikh in the chair and attended by Law Minister Senator Azam Nazir Tarar, Trade Minister Syed Naveed Qamar, Attorney General Mansoor Usman Awan, Dr. Ramesh Kumar, Ali Pervaiz Malik, Barjees Tahir and others. 

Law Minister Tarar said every penny from the FCF was spent on the directive of the federal government. Funds for elections were not allocated in the annual budget. The finance ministry tabled a bill titled “Charged Sum for General Election (Provincial Assemblies of Punjab & Khyber Pakhtunkhwa) Bill 2023. But both houses of parliament rejected the bill, he added.

About apex court’s April 17 order, he said the matter of the approval of funds should be reviewed first and asserted that the “Constitution precedes all”.

He said if more funds were needed, the federal government could offer supplementary grants. Instead of confrontation, a solution should be found,” Mr Tarar added.

Meanwhile, PML-N’s Barjees Tahir said elections in Punjab would harm the country. He recalled that even in its previous session, the standing committee had decided against releasing funds to the ECP.

He questioned how the apex court could issue an order to the SBP. “Does the national treasury belong to the state bank’s governor?” 

AGP Awan said institutions had to ensure the implementation of the decision of the Supreme Court. The National Assembly had the prerogative to approve or reject these funds.

Commerce Minister Naveed Qamar said the institutions were being threatened with contempt of court. “I disagree with the law minister and the attorney general,” Mr Qamar told the committee while noting that the budget approval was the NA’s authority.

“The Supreme Court is saying that the authority to allocate the budget should be given to us. The National Assembly cannot give this authority to any institution,” he noted.

Supreme Court order 

A three-member bench, comprising Chief Justice of Pakistan (CJP) Umar Ata Bandial, Justice Ijazul Ahsan and Justice Munib Akhtar, had directed the government on April 4 to provide Rs21 billion to the ECP for elections by April 10 and instructed the ECP to submit a report in this regard on April 11.

However, the government referred the matter to parliament which refused to comply with court order.

The court summoned finance secretary, SBP governor, Attorney General for Pakistan (AGP) Mansoor Awan and the ECP on April 14. It also directed the SBP to submit the record and details of all monies whatsoever of the federal government lying with or under the control, custody or management of the bank.

After the in-chamber hearing, the court ordered the SBP to release funds from the FCF for elections.