The fate of the Supreme Court’s deadline to issue funds for polls in Punjab and Khyber Pakhtunkhwa became more uncertain on Monday after the National Assembly rejected a motion seeking a supplementary sum of Rs21 billion for elections in Punjab.

Last week, the apex court had directed the State Bank of Pakistan (SBP) to “allocate and release” Rs21bn by April 17 (today) for elections in two provinces from the Federal Consolidated Fund (FCF) “lying under its control and management”. It had also instructed the central bank to send an “appropriate communication” to this effect to the finance ministry in this regard.

A meeting of the National Assembly’s Standing Committee on Finance and Revenue was called earlier today to discuss the SC order regarding the disbursement of funds.

A press release issued after the meeting stated that the body had unanimously recommended the Finance Division that the matter of releasing funds be placed before the NA “in the form of a bill through the federal cabinet” in order to comply with the top court’s orders.

Later in the day, a meeting of the federal cabinet was held wherein the government decided that the summary sent by the finance ministry, based on the recommendations made by the NA body, would be referred to back to Parliament.

“The federal cabinet has referred a summary by the finance ministry, based on recommendations made by the NA Standing Committee on Finance and Revenue on providing the election commission with funds for elections in Punjab and KP, to Parliament,” a handout issued by the Prime Minister’s Office said.

The matter was then raised in a session of the NA held after the cabinet meeting. During the session, Law Minister Azam Nazeer Tarar said that the Election Commission of Pakistan (ECP), in exercise of its power, had delayed polls in Punjab till October citing the lack of finances and the security situation.

“In such economic circumstances if elections are held again and again for the sake of one man’s ego, it is not in the country’s interest,” he said.

He went on to say that the federal government, in light of SC’s directives, had presented a bill in the lower house of parliament for treating the funds required as a “charged expenditure”. “But this House after thorough deliberations, rejected the bill,” he said.

He noted that the SBP was directed by the SC to transfer Rs21bn to the ECP from the FCF but added that under the Constitution only the lower house of Parliament could give the approval for doing so.

He said that the NA standing committee had told the Finance Division to take this matter to the cabinet which then referred the matter to the NA which had the authority to approve or disapprove additional expenses under Articles 82 (2) and 84 of the Constitution.

He then presented a motion seeking a supplementary sum of Rs21bn to meet the expenditures for elections in Punjab. The motion was subsequently rejected by the House and the NA session was later adjourned till noon tomorrow (Tuesday).

‘No authenticity without Parliament’s approval’

In a brief conversation with reporters after the NA committee meeting wrapped up today, Minister of State for Finance and Revenue Dr Aisha Ghaus Pasha said that neither the SBP nor the Finance Division had the authority to release funds from the FCF.

She explained that the process of the allocation required approval from the Parliament. “Without the approval of the Parliament, no bill or budget has any legal authenticity.

“Hence, we leave the entire matter on the Parliament now. The Parliament is supreme for us because this is what is written in the Constitution,” Pasha said.

She elaborated that the SBP can only allocate the money but cannot release it until and unless a proper indication was given by the Finance Division.

“The Finance Division can only act on the orders of the federal cabinet. Now, it is the federal cabinet’s will to take the matter to the Parliament … if the Parliament says yes, we will disburse the funds today,” Pasha added.

The meeting

Finance Minister Ishaq Dar, SBP Governor Jameel Ahmad, Law Minister Azam Nazir Tarar, Commerce Minister Naveed Qamar, Auditor General of Pakistan Mohammad Ajmal Gondal and Attorney General for Pakistan Mansoor Awan attended the meeting of the NA Standing Committee on Finance and Revenue.

At the outset of the meeting, the law minister said that each and every penny that was spent from the FCF was according to the federal government’s wish.

He recalled that election funds were not allocated in the annual budget, and instead, the finance ministry had presented a bill — titled “Charged Sum for General Election (Provincial Assemblies of Punjab & Khyber Pakhtunkhwa) Bill 2023.

But both the National Assembly and the Senate had rejected the bill, Tarar said.

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

He went on to say that if the budget expenditure was less in a fiscal year or if funds were needed, the federal government could offer supplementary grants. “If funds have to be given, then they may as well be given in accordance to the Constitution.”’

“Instead of heading towards a closed alley, a solution should be derived,” Tarar stressed, adding that he respected the SC’s order but “the decision will be taken as per the Constitution”.

Meanwhile, PML-N’s Barjees Tahir said: “If you want to harm the country, then hold an election in Punjab. This matter was discussed for two hours in the last session.”

He recalled that even in its previous session, the standing committee had decided against releasing funds to the Election Commission of Pakistan. “We cannot go back on our decisions.”

The PML-N leader further asked how the apex court could issue an order to the SBP. “Does the national treasury belong to the state bank’s governor?”

To this, AGP Awan said: “Institutions have to ensure the implementation of the decision of the Supreme Court. The National Assembly has the prerogative to approve or reject these funds.”

Here, the commerce minister lamented that institutions were being threatened with contempt of court.

“I disagree with the law minister and the attorney general,” 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.

SBP Deputy Governor Sima Kamil, meanwhile, informed the participants that the central bank had allocated the funds for elections but did not have the authority to release them.

An official handout released by the NA Secretariat stated that the committee, after detailed deliberations, “unanimously recommended the Finance Division that the matter may be placed before the NA in the form of a bill through the federal cabinet” in order to comply with the orders of the SC.

SC order

In its order on April 4, a three-member SC bench, comprising Chief Justice of Pakistan (CJP) Umar Ata Bandial, Justice Ijazul Ahsan and Justice Munib Akhtar had directed the government to provide Rs21bn to the ECP to conduct elections in Punjab and Khyber Pakhtunkhwa by April 10 and instructed the ECP to provide a report to the court on whether or not the government complied with the order on April 11.

However, the government referred the matter to the parliament which defied the SC orders and refused to issue the funds.

The court then 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. 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 issued an order in which it directed the SBP to release Rs21 billion from the FCF for elections.

“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,” the court order read.

The court also observed that the required funds could be made available to the Election Commission of Pakistan (ECP) “immediately and within a matter of a day”. It also noted that there was “absolutely no difficulty or hitch, either financially or procedurally or in terms of the relevant authorisation by and under the Constitution” in the immediate release of the funds in question.