While the amendments to election finance rules under the enacted law in August 2023 may contribute to reducing the disparity between the declared and the actual spending by national and provincial assemblies seat aspirants, it is unlikely to eliminate the gap entirely.

The substantial increase in the campaign spending limits of candidates has bolstered the perception that engaging in electoral politics in Pakistan is predominantly an endeavour for the affluent.

Among a series of hastily enacted legislations prior to the completion of its term, the former prime minister Shahbaz Sharif’s government passed amendments to the Election Act 2017. The modified Act, implemented on August 5, 2023, not only adjusted certain provisions but, in Article 132 under Chapter VIII of the Election Act, dealing with election expenses, also raised the ceiling on campaign spending for candidates in both tiers of legislative bodies.

Contestants vying for a National Assembly seat now have an increased permissible limit of Rs10 million, representing a 150 per cent surge, while those running for a provincial assembly seat have a revised cap of Rs4m, reflecting a growth of approximately 34pc. The previous spending limits were Rs4m for the National Assembly and Rs3m for provincial assemblies.

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For the Stockholm-headquartered reputable Institute for Democracy and Electoral Assistance (International IDEAS), “Transparency in the funding of campaigns, political parties and democratic politics is at the heart of the international anti-corruption agenda.”

Permissible spending limits for election campaigns have been increased

Their experts acknowledge the value of money but advise being watchful, as the abuse of financial muscle can pose a serious challenge to democratic politics by holding decision-making hostage to special interests.

The website states, “A lack of information on how much money circulates in and around elections, where resources are coming from and how they are spent, makes it harder for the electorate to make informed decisions. It also facilitates corruption and erodes citizen trust in political institutions.”

A local expert emphasised that limiting campaign spending is pivotal in fostering fairness, thwarting corruption, promoting diverse participation, preserving democratic values, and safeguarding public trust in the electoral process.

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Musadaq Zulqarnain, Chairman and CEO, Interloop Group, known for supporting social causes and frequently sharing valuable insights on matters of general interest, does not envision much scope for financial transparency in Pakistani politics as long the parallel economy persists.

“The unfortunate reality is that in an undocumented economy like ours, the actual electoral spend far exceeds the permissible limit, rendering such caps practically meaningless. Regrettably, in a country where neither the state nor the people show much interest in documenting the economy, elections will remain a pursuit for the wealthy.”

Muddassir Rizvi, an election expert, voiced apprehension regarding the preservation of the clause that absolves candidates from responsibility for the actions of their campaign sponsors. He emphasised, “The existing rules grant a significant degree of freedom to individuals and entities pumping money in electioneering. There is a crucial need to hold them accountable for both the source and purpose of their funding.”

Sharing his perspective on the matter, Ahmed Bilal Mahboob, the founder and president of the Pakistan Institute of Legislative Development and Transparency (Pildat), remarked, “Two contrasting views coexist. The first suggests that these spending limits are beyond the means of an ordinary person running for office and, therefore, need reduction.

“The second argues that considering inflation since 2017, the ceiling should be increased to reflect reality. I am inclined to agree with the latter. However, the effectiveness of these limits depends on the Election Commission’s ability to enforce them, a task it has struggled with thus far.”

Veteran Pakistan Peoples’ Party politician Farhatullah Babar, respected across the political spectrum, highlighted the need for close regulation of electoral transparency. He commended the recent legislation as a logical step in the right direction, long overdue owing to the increasing costs of politics.

Mr Babar emphasised the necessity of adapting to modern electoral dynamics, citing the expenses involved in traditional practices. He lamented the unrealistic nature of previous spending limits, citing evolving political communication demands, which inherently include costs for symbols, slogans and party manifestos.

“As long the conventional approach to politics persists, party camp at each polling station necessitates at least one table, four chairs and provision of food and water for volunteers and in some cases for voters, resulting in an average minimum expenditure of Rs50,000 per polling station. With an average of 260 polling stations per constituency, transportation costs, promotional material, and social media management must be added. The previous spending limit, given these realities, was undeniably inadequate.”

He underscored the importance of moving towards effective political finance legislation. “The Political Parties Order (PPO) 2002 banned foreign funding for elections and political parties. The ban was lifted in 2017, and overseas Pakistanis were permitted to contribute towards party funding. About 180 out of 193 nations have laws in this regard to prevent foreign money from interfering in national politics.”

Furthermore, he stressed the need to enforce spending limits effectively and scrutinise financial statements by candidates, legislators, and political parties in a timely manner. Mr Babar advocated an informed and open discussion on the political finance system based on principles of disclosure, enforcement and sanctions, using the recent legislation as a foundation.

Published in Dawn, The Business and Finance Weekly, November 27th, 2023