Supreme Court Orders SBP to ‘Release’ Funds for Elections in Punjab, KP

Aamir Qureshi—AFP

A three-member bench of the Supreme Court on Friday ordered the State Bank of Pakistan (SBP) to disburse Rs. 21 billion from government funds to the Election Commission of Pakistan (ECP) for the conduct of elections in Punjab.

Headed by Chief Justice of Pakistan (CJP) Umar Ata Bandial and comprising Justices Ijazul Ahsan and Munib Akhtar, the bench conducted an in-chamber hearing over the non-implementation of an earlier order directing the federal government to release the funds. Earlier this week, it had summoned the State Bank of Pakistan (SBP) governor, secretary finance, secretary ECP and Attorney General for Pakistan (AGP) Mansoor Usman Awan to appear before it and update on the release of funds.

In line with the summons, the SBP acting governor, special secretary finance, additional secretary finance, ECP secretary and the AGP appeared before the bench on Friday. According to local media, the judges expressed annoyance over the non-implementation of the court orders and directed the AGP to justify why its directives had not been implemented.

Speaking with media after the hearing, the AGP said he had informed the court that the federal government had implemented the order, tabling a bill in the National Assembly for the release of funds from the Federal Consolidated Funds. “The government cannot ask the SBP to issue the funds after the rejection of the bill from Parliament,” he reportedly told the bench.

In its written order, the bench stated that it had received presentations from the central bank and the Finance Division over the funds available with the government, adding that the acting governor had confirmed that the finances could be released if the court so ordered. “The State Bank further confirmed that the necessary transaction for the transfer of funds to the Commission, so that Rs. 21 billion become immediately available and utilizable for the latter, could be done within the shortest possible time, and at the latest by the close of business on Monday,” it said.

According to the order, the briefing of the finance secretary had made it “clear that the disbursement of Rs. 21 billion 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. Indeed, 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.”

The court directed the SBP to send “appropriate communication” for the allocation of Rs. 21 billion to the Finance Division immediately, following which the latter would issue instructions to the Accountant General Pakistan Revenues (AGPR) for the release of funds. All this must be done by the end of the business day on April 17, it said. “The sum of Rs. 21 billion shall become available to and with the Election Commission in immediately releasable and utilizable funds for the purposes of holding the general elections to the Punjab and Khyber Pakhtunkhwa assemblies,” it added.

The bench also directed the central bank and the Finance Division to submit separate reports on April 18 about the order’s implementation. It ordered the ECP to submit a report confirming that it had received the funds on the same day. “We may also note that this order shall be deemed sufficient authority for all purposes for the authorization 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 authorization of this expenditure in terms of Article 84 and other applicable provisions of the Constitution,” it said.