Supreme Court Orders State Bank of Pakistan to Disburse Funds for Punjab and KP Elections

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The Supreme Court Orders Immediate Release of Election Funds for Punjab and Khyber Pakhtunkhwa, Government Refuses to Comply

In a recent development, the Supreme Court has directed the State Bank of Pakistan (SBP) to disburse funds worth Rs21 billion for the upcoming elections in Punjab and Khyber Pakhtunkhwa and send an "appropriate communication" to the finance ministry by Monday (April 17). The court order emphasizes that the funds are to be made "immediately and within a matter of a day" available to the Election Commission of Pakistan (ECP) without any procedural or constitutional hurdles.

Earlier, a three-member bench of the Supreme Court, headed by Chief Justice of Pakistan (CJP) Umar Ata Bandial, had ordered the government to provide the said amount to the ECP by April 10. However, the government referred the matter to Parliament for approval, which was denied, and thus failed to comply with the court order.

As a consequence, the Supreme 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' chamber on April 14. During the in-chamber hearing, the AGP, SBP Deputy Governor Sima Kamil, finance secretaries, and ECP officials briefed the court on the government's failure to disburse the funds as ordered.

The Supreme Court's decision has paved the way for the smooth conduct of elections in the Punjab and Khyber Pakhtunkhwa assemblies, and the SBP has been directed to provide details of all monies of the federal government under its control, custody, or management. The court is expected to issue a formal order in this regard after Friday prayers.

The court order


The Supreme Court issued a written order that stated the funds and monies of the federal government which were under the central bank's custody, control, and management were set out in a statement presented to a court by the SBP acting governor.

This statement constituted the Federal Consolidated Fund, of which Account No. I (Non-Food) constituted by far the largest component of the fund, being 98.77% thereof. The SBP official confirmed that the Rs21 required by the commission could be made available from the funds under the custody, control, and management of the State Bank, with particular reference to Account I, if the court so directed and ordered.

The Finance Ministry Special Secretary also gave a presentation to the court on the financial position of the Government of Pakistan, stating that the disbursement of Rs21bn would at most amount to a minuscule increase in the obligations of the federal government. On the basis of these briefings, the court ordered the SBP to allocate and release Rs21bn from Account I lying under its control and management for elections in Punjab and KP.

Report submitted by AGP



Earlier, the Attorney General of Pakistan (AGP), on behalf of the government, submitted a two-page document to the court that outlined the federal coalition's position on the matter. According to the document, which Dawn.com has reviewed, the release of funds from the Federal Consolidated Funds, which includes all revenues, loans, and repayments received by the federal government, is subject to parliament's approval. Although the government presented a bill seeking the release of funds, it was subsequently rejected. The document stated that the government had fulfilled its legal obligations, but it did not have the constitutional authority to request the State Bank of Pakistan (SBP) to release the funds.

In a separate conversation with reporters outside the Supreme Court (SC), the Secretary of the Election Commission of Pakistan (ECP), Umar Hameed, revealed that the hearing was conducted in a friendly environment. He presented the commission's position on the release of funds to the judges and discussed the ongoing census in the country. He pointed out that after the census is completed, four to five months are required for constituency demarcation. Hameed stated that they are now waiting for the court to issue its order.

Bill seeking poll funds rejected by Parliament


Yesterday, the National Assembly of the country witnessed a significant event as it rejected a money bill that the government had presented to seek funds for conducting polls in Punjab and KP. The Charged Sums for General Election (Provincial Assemblies of the Punjab and the Khyber Pakhtunkhwa) Bill 2023 was not approved by the house with a majority vote after Finance Minister Ishaq Dar informed the members that the standing committee had recommended against the bill he introduced on April 10.

The bill proposed that the funds needed for conducting elections in both provinces should be "expenditure charged upon the Federal Consolidated Fund (FCF)," which 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. According to the bill, it would "override other laws" and have an effect "notwithstanding anything contained in any other law, rules, and regulations" when it was in force.

It also mentioned that the proposed law would be repealed once elections for both assemblies were held, and it was not necessary to hold general elections and polls in the Sindh and Balochistan assemblies for it to be repealed.


Supreme Court warns government of repercussions for withholding election funds


Earlier this week, the Supreme Court summoned the AGP and other officials to the CJP's chambers and warned that the federal government's failure to comply with the April 4 directive regarding the release of funds for polls could result in consequences.

The court order stated that anyone who initiates or encourages disobedience or defiance of the court can be held accountable. The order warned that the present disobedience could jeopardize the timely holding of general elections mandated by the Constitution. The court emphasized that providing funds for this critical constitutional purpose requires immediate attention and takes precedence over proceeding against those who may have committed contempt of the court.

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