Islamabad
\nThe Supreme Court on Friday directed the State Bank of Pakistan (SBP) to release funds worth Rs21 billion for elections in Punjab and Khyber Pakhtunkhwa and send an \u201cappropriate communication\u201d to this effect to the finance ministry by Monday (April 17).
\n\u201cThe sum of Rs21bn shall be and become available to and with the election commission in immediately releasable and utilisable funds for the purposes of holding the general elections to the Punjab and KP assemblies,\u201d the court order read.
\nThe court also observed that the required funds could be made available to the Election Commission of Pakistan (ECP) \u201cimmediately and within a matter of a day\u201d. It also noted that there was \u201cabsolutely no difficulty or hitch, either financially or procedurally or in terms of the relevant authorisation by and under the Constitution\u201d in the immediate release of the funds in question.
\nThe directives for the release of the said funds were earlier issued by a three-member SC bench, comprising Chief Justice of Pakistan (CJP) Umar Ata Bandial, Justice Ijazul Ahsan and Justice Munib Akhtar, in an April 4 verdict. The government was directed to provide Rs21bn to the ECP to conduct elections in Punjab and Khyber Pakhtunkhwa by April 10, and directed the ECP to provide a report to the court on whether or not the government complied with the order on April 11.
\nThe ECP, in a one-page report submitted earlier this week, informed the court about the government\u2019s reluctance to issue the amount needed for elections.
\nThe government, meanwhile, had referred the matter to Parliament to decide. A day earlier, the parliament defied the SC order and refused to issue the elections funds.
\nSubsequently, the top court issued notices to the finance secretary, SBP governor, Attorney General for Pakistan (AGP) Mansoor Awan and the ECP, directing them to appear before the judges\u2019 chamber 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.
\nIn line with the court\u2019s directives, AGP Awan, SBP Deputy Governor Sima Kamil, finance secretaries and officials of the ECP in an in-chamber hearing today briefed the SC on the government\u2019s failure to disburse Rs21 billion in funds for elections in Punjab and KP.
\nThe briefing \u2014 which lasted for more than an hour \u2014 was held in the chamber of CJP Bandial, with Justices Ijazul Ahsan and Munib Akhtar in attendance.
\nThe court order
\nHours later, the SC issued a written order that said the SBP acting governor had presented to a court a statement setting out funds and monies of the federal government which were under the central bank\u2019s custody, control and management.
\nThe order, a copy of which is available with Dawn.com, also contained the said statement.
\nReferring to it, the judges observed that the SBP acting governor had explained that these amounts constituted the Federal Consolidated Fund.
\n\u201cThe amount lying in Account No.I (Non-Food) (\u201cAccount I\u201d) constitutes by far the largest component of the Fund (being 98.77 per cent thereof as of the date for which the data was provided),\u201d the court order read.
\nIt added that the SBP official further explained that the \u201camount lying in Account I is not designated for any particular or special usage whatsoever.
\n\u201cFurthermore, the funds therein are not static inasmuch as there are regular (it seems almost daily) inflows into, and outflows therefrom, as government receipts flow in, and monies are released to meet government expenditures.\u201d
\nThe order further quoted the SBP acting governor as saying that \u201cother than Account I, the other 16 accounts were for special and designated purposes, carrying different amounts\u201d.
\nFollowing this briefing, the order added, the top court\u2019s April 4 verdict was cited to the SBP official and he was told that an amount of Rs21bn was required for holding elections in Punjab and KP.
\n\u201cIt was queried as to whether this sum could be made available from the funds aforementioned of the federal government lying with and under the custody, control and management of the State Bank, with particular reference to Account I.\u201d
\nIn response, the acting governor confirmed that this would be done if the court so directed and ordered, the SC order said.
\nIt added that the SBP \u201cfurther confirmed that the necessary transaction for the transfer of funds to the commission (ECP), so that Rs21bn become immediately available and utilisable for the latter, could be done within the shortest possible time, and at the latest by the close of business on Monday i.e. April 17, 2023\u201d.
\nMoreover, Finance Ministry Special Secretary Awais Manzur Sumra, with the AGP\u2019s assistance, also gave a presentation to the court. This presentation, in broad terms, was given with regard to the \u201cfinancial position of the Government of Pakistan, with particular reference also to the present and\/or pending international obligations to the IMF (International Monetary Fund)\u201d, the order said.
\nThe judges observed in the order that keeping in view the figures presented to the court, \u201cof which even the smallest ran to several hundreds of billions of rupees, it became clear that the disbursement of Rs21bn for fulfilling the constitutional mandate of holding the general elections would, at most, amount to a minuscule increase in the obligations of the federal government.
\n\u201cIndeed, viewed from certain financial perspectives and contexts, which were stated by the team from finance, the amount would be so insignificant as to not even amount to a rounding off error.\u201d
\nThe order further stated that the team from the Finance Division informed the court that the government regularly went into bond markets to borrow and raise funds \u201cwhich in the aggregate in any given financial year ran into trillions of rupees\u201d.
\nThe order said it was stated that in this regard, \u201ctreasury bills were issued by the SBP on behalf of the federal government on a regular and ongoing basis and that, even in this perspective, taking the amount now under consideration into account would not have any meaningful impact or effect\u201d.
\nMoreover, \u201cit was also confirmed by Finance that if the court so ordered and directed the process of making the funds to the tune of Rs21bn available to the commission (ECP) on an immediately utilisable basis would be concluded rapidly, and by the close of business on April 17,2023\u201d.
\nOn the basis of these briefings, the three judges made the following observation: \u201cIn our view, on an assessment of the presentations made by the State Bank and the Finance Ministry\/Division, there can be no doubt that the Rs21bn required by the commission and ordered to be made available in terms of para 5 of the [April 4] order can be done immediately and within a matter of a day.\u201d
\nThe order further said finance ministry officials confirmed to the court that in terms of Article 84 of the Constitution, the federal government was \u201cfully authorised to make expenditures from the Federal Consolidated Fund for, inter alia, \u2018expenditure upon some new service not included in the Annual Budget Statement\u2019 for the relevant financial year here being the year ending on June 30, 2023\u201d.
\nThe order stated that for such an expenditure, the federal government \u201cobtains ex post facto approval and authorisation\u201d from the National Assembly in terms of the procedure laid down in the articles of the Constitution immediately preceding Article 84.
\n\u201cOn a consideration of all of the foregoing, it is our view that there is absolutely no difficulty or hitch, either financially or procedurally or in terms of the relevant authorisation by and under the Constitution, for the immediate release of Rs21bn to the election commission for fulfilling its constitutional mandate for the holding of general elections to the Punjab and KP Assemblies.\u201d
\nThe court directed the SBP to allocate and release Rs21bn from \u201cAccount I lying under its control and management (and which constitutes the principal component of the Federal Consolidated Fund)\u201d for elections in Punjab and KP.
\n\u201cThe State Bank shall, in this regard, immediately send an appropriate communication to the Finance Ministry\/ Division,\u201d the court instructed, adding that the finance ministry \u201cshall forthwith and immediately issue a proper direction to the AGPR (Accountant General Pakistan Revenues) to increase the limit of the ceiling with respect to the election commission\u2019s ID No.2826 by the said sum of Rs21bn\u201d.
\nThis position should also immediately be confirmed to the ECP by the finance ministry, \u201cwhich shall also ensure that AGPR also forthwith gives proper intimation and confirmation to the election commission,\u201d the court directed.
\nIt said, \u201cAll this must be done at the earliest and at the absolute latest not later than the close of business on Monday i.e. April 4, 2023. In this manner, the sum of Rs21bn shall be and become available to and with the election commission in immediately releasable and utilisable funds for the purposes of holding the general elections to the Punjab and KP assemblies.\u201d
\nThe court further directed the SBP, finance ministry, AGPR and ECP to \u201cact together and coordinate fully so that the order and direction of the court is implemented within the stipulated timeframe\u201d.
\nThe apex court also sought a compliance report from the finance ministry by April 18 (Tuesday), which \u201cshall also include a confirmation in relation to AGPR\u201d. Moreover, it directed the ECP to also submit a report by Tuesday that Rs21bn has \u201cbecome available to it in terms as stated above\u201d.
\nWith regards the federal government, the court stated: \u201cWe may also note that this order shall be deemed sufficient authority for all purposes for the authorisation of expenditure on the Federal Consolidated Fund and the federal government shall thereupon obtain the ex post facto approval and sanction from the National Assembly for authorisation of this expenditure in terms of Article 84 and other applicable provisions of the Constitution\u201d.
\nThe court said that matter \u201cstands adjourned\u201d to the extent of the funds for elections in Punjab and KP, \u201cbut should any need arise it will be taken up again in such terms as deemed appropriate by the court\u201d.<\/p>\n
AGP submits report
\nEarlier, the AGP submitted on behalf of the government a two-page document to the court detailing the federal coalition\u2019s stance on the matter.
\nIn the document, which Dawn.com has seen, Awan said that the release of funds from the Federal Consolidated Funds \u2014 which includes all revenues received by the federal government, all loans raised by that government and all monies received by it in repayment of any loan \u2014 was subject to the parliament\u2019s approval.
\nIt pointed out that the government had subsequently presented a bill in the parliament seeking the release of funds, but it was rejected.
\nThe document added that the government had fulfilled its legal obligations, but it was not authorised under the Constitution to ask the SBP to release the funds.
\nSeparately, talking to reporters outside the SC, ECP Secretary Umar Hameed said that the hearing was held in a \u201cpleasant atmosphere\u201d, revealing that he presented the commission\u2019s stance on the release of the funds to the judges.
\n\u201cWe also talked about the census underway across the country,\u201d he said, pointing out that once the census was completed, four to five months were required for the demarcation of the constituencies.
\n\u201cWe are now waiting for the court to issue its order,\u201d Hameed added.<\/p>\n
Parliament turns down bill for poll funds
\nYesterday, perhaps for the first time in the country\u2019s parliamentary history, the National Assembly rejected a money bill that the government had tabled to seek funds for conducting polls in Punjab and KP.
\nThe house rejected the Charged Sums for General Election (Provincial Assemblies of the Punjab and the Khyber Pakhtunkhwa) Bill 2023 with a majority vote after Finance Minister Ishaq Dar informed the house that the standing committee had recommended not to approve the bill he introduced on April 10.
\nThe bill stated that funds required for conducting elections in both the provinces shall be \u201can expenditure charged upon the Federal Consolidated Fund (FCF)\u201d, which it said comprises all revenues received by the federal government, all loans raised by the government and all money received by it in repayment of any loan.
\nThe bill said that it shall \u201coverride other laws\u201d and have effect \u201cnotwithstanding anything contained in any other law, rules and regulations\u201d when it was in force.
\nIt added that the proposed law would stand repealed once elections for both the assemblies were held, noting that the general elections and polls to the Sindh and Balochistan assemblies need not be held for it to be repealed.<\/p>\n
SC warns govt of consequences over delaying poll funds
\nAs it summoned the AGP and other officials to the CJP\u2019s chambers earlier this week, the apex court warned that the failure of the federal government to comply with the April 4 direction regarding the release of funds for polls could have consequences.
\n\u201cThe consequences that can flow from such prima facie defiance of the court are well settled and known,\u201d it said.
\nThe court order said that every person who embarks upon, encourages or instigates disobedience or defiance of the court can be held liable and accountable.
\nThe result of the present prima facie disobedience is that yet again, the holding of general elections in a timely manner as mandated by the Constitution may be put in jeopardy, the order said, adding that question of the provision of funds for such a vital constitutional purpose is something that requires immediate attention which takes priority over proceeding against those who may have committed contempt of the court.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad The Supreme Court on Friday directed the State Bank of Pakistan (SBP) to release funds worth Rs21 billion for elections in Punjab and Khyber Pakhtunkhwa and send an \u201cappropriate communication\u201d to this effect to the finance ministry by Monday (April 17). \u201cThe sum of Rs21bn shall be and become available to and with the […]<\/p>\n","protected":false},"author":2,"featured_media":325453,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-325885","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n