NA rejects the bill seeking release of Rs21 biln in funds for Punjab & KP elections with majority vote

ISLAMABAD, April 13 (SABAH): National Assembly (NA) on Thursday unanimously rejected the bill seeking the release of Rs21 billion in funds for Punjab and Khyber Pakhtunkhwa (KP) elections with majority vote.

NA standing committee on finance presented a report before the session, presided over by NA Speaker Raja Pervez Ashraf, delineating the rejection of the release. The session was adjourned till April 26 (Wednesday).

Earlier, Finance Minister Ishaq Dar had tabled the Election Expenses Bill in the National Assembly to seek its approval.

The Money Bill (Charged Sum for General Elections to provincial assemblies of Punjab and KP) 2023, presented in the parliament stated that the required funds for the elections in Punjab and KP should be “an expenditure charged upon the Federal Consolidated Fund”, which it said comprises all revenues received by the federal government, all loans raised by that government, and all money received by it in repayment of any loan.

The bill further stated that it should “override other laws” and have effect “notwithstanding anything contained in any other law, rules and regulations” when it was in force.

It added that the proposed law would stand repealed once the elections to both the assemblies were held, noting that the general elections and polls to Sindh and Balochistan assemblies need not be held for it to be repealed.

Ishaq Dar tabled the bill in the assembly as the Supreme Court (SC) had ordered the federal government to release funds for elections alongside ordering the ECP to hold elections in Punjab on May 14. The court subsequently ordered the electoral watchdog to present a report on the provision of funds.

After the Ministry of Finance — citing scarce funds and strict International Monetary Fund (IMF) conditions — excused itself from providing funds for general elections in Punjab and Khyber Pakhtunkhwa (KP), the National Assembly and Senate’s Standing Committees on Finance on Thursday rejected the money bill seeking assistance in the matter. 

During the meeting, NA’s standing committee Chairman Qaiser Ahmed Sheikh — who also presided over it — suggested that Finance Minister Ishaq Dar come and answer questions regarding the current state of the country’s economy.

At this, Minister of State for Finance Dr. Aisha Ghaus Pasha said that they have informed the body about the situation. She further said that Pakistan has been bound by the IMF to keep the fiscal deficit on target.

“We are facing a shortage of funds and a huge deficit and do not have additional funds available apart from the allocated budget,” she said.

She added that the provision of funds outside of the budget would be a violation of IMF conditions.

In a brief conversation with a private TV channel after the NA committee meeting wrapped up on Thursday, committee chairman Qaiser Ahmed Sheikh, who is of the PML-N, said that the bill was rejected.

“This bill […] as it was not allocated in our budget and the finance minister has said that funds are not available, there was no other option [so] we rejected it. “We do not have any other fund, right — the committee does not have funds of its own. The alerts that we have been given […] the entire committee has collectively rejected the bill,” he said.

During Thursday’s meeting, Committee Chairman Qaiser Ahmed Sheikh raised an objection on why the bill was presented before the finance committee and not the budget committee.

The committee then rejected the bill. The standing committee’s rejection of the bill means it will return to the NA for lawmakers to ponder over, from whence it will be sent to the relevant committees again.

At the outset of the hearing, committee chairman Sheikh said he wanted to talk to some members separately before the meeting. “This is an important matter. We have to make a plan of action,” he said.

Balochistan Awami Party (BAP) leader Khalid Hussain Magsi said that “members have been waiting since 10:30 AM, you may start the meeting”, which Sheikh complied with.

The chairman then asked State Minister for Finance Ayesha Ghaus Pasha to brief the committee on the bill. She told the committee, “This year, 5bn rupees were kept for the election commission. Now the Supreme Court has asked to give 21bn rupees. This is why this demand was brought into the money bill.

Mutahidda Qaumi Movement’s Sabir Hussain Kaimkhani said, “First, this should be told why was it brought into the money bill this time.”

To this, Pasha replied, “Parliament’s approval is also required for such a huge amount to be approved by the federal consolidated fund.

PML-N leader Chaudhry Muhammad Barjees Tahir said, “It is a governmental bill, members have come from afar. The finance minister should take the members into confidence.

“The bill hasn’t been passed yet and the eight judges have sat in the Supreme Court (on the Supreme Court rule bill). The way funds are being received through black-mailing, we express our solidarity with the government,” Tahir said. He added, “We say to the government to not pay heed to such black-mailing.”

Here, ECP Secretary Omar Hamid Khan said, “We also know the finance division’s situation. We had demanded 21bn rupees from the finance ministry. We have to present a report in the Supreme Court tomorrow.”

Tahir then responded, “We have said that the amount is not available.” Then PML-N’s Ali Pervaiz Malik asked Pasha to tell if the funds could be provided or not.

The state minister for finance said, “We are in the IMF programme and cannot increase the financial loss. We do not have the funds.

The committee chairman, PML-N’s Sheikh, said, “There is the current fiscal year’s budget. In that as well, funds have not been included.” PML-N’s Chaudhary Khalid Javed Warraich also asked for the bill to be rejected.

Sheikh then asked if any such a bill had come forward in the past and why the need arose now.

A law ministry official said the money bill is presented before the finance committee after the parliament, to which the committee chairman replied that he has not seen so happening in the past 10 years.

“It is the decision of the standing committee on finance that any governmental bill will not be approved till the finance minister himself comes and briefs the committee,” Sheikh said.

At one point during the meeting, BAP’s Magsi said, “The treasury is empty now. The matter of the provision of funds to the election commission will come later. Elections in the entire country should be held at once.

“Punjab elections should not be held four months prior [to the designated time] — Punjab is the largest province. If Punjab elections are held before other provinces, it will impact the election of those other provinces,” he further said.

Here, Pasha said, “The economic situation of the country is such that the budget situation is under extreme pressure. The government is facing extreme financial issues.

The PML-N leader continued, “The government inherited heavy financial loss. The IMF (international monetary fund) program is being restored and an economic review is ongoing.

“The economy is under pressure due to the international situation, including the Ukraine war, and the floods. The economic growth rate has also reduced,” Pasha said.

Regarding the petrol subsidy that was recently in works by the government, she said, “We said to the IMF that no decision had been taken on the petroleum subsidy.

“We told the IMF that the petroleum subsidy has not been finalised for now. Will tell the IMF when it has been finalised. Right now, the petroleum division is reviewing the subsidy,” the minister added.

At one point during the meeting, Tahir said, “The election commission should not be issued a single rupee for Punjab elections. We think that all these things are plotted.”

He said neither should the elections take place nor funds be released for them considering the country’s situation and reiterated that he was standing with the government on this matter.

Meanwhile, during the Senate’s standing committee session, the state minister said that Pakistan had a limited amount of funds as the country was struggling to avert a possible default. The senate committee also rejected the bill.

On Monday, the government tabled the bill regarding election expenditures in both houses of the parliament as it informed the legislature about the repercussions of holding the election in Punjab earlier.

Ishaq Dar tabled the bill pertaining to funds for general elections in Punjab and KP hours before the deadline given by the Supreme Court for the disbursal of Rs21 billion to the Election Commission of Pakistan (ECP) ended.

The bill titled “Charged Sums for General Elections of Provincial Assemblies of Punjab and Khyber Pakhtunkhwa Bill 2023” was presented in both houses of the parliament minutes after the federal cabinet approved a summary prepared by the Ministry of Finance regarding the expenditure on elections.

The Supreme Court, in its April 4 verdict, had directed the federal government to release and provide ECP with funds worth Rs21 billion in any case by April 10 for polls.

While presenting the bill in the National Assembly, the finance minister said that it is now the responsibility of the parliament to decide whether funds to ECP should be released or not.

Expressing his views in the lower house, Ishaq Dar said the snap polls ordered by the apex court were not in the national interest due to the country’s security and economic situation.

“Elections in all assemblies should be held on the same date,” the finance minister said, adding that the government laid this bill before the parliament in light of the Supreme Court’s orders to release Rs21 billion to the ECP.

The finance czar recalled that the lower house had also passed a resolution that the apex court’s order into the suo motu notice regarding holding elections in Punjab is a decision of 4-3 and the judgment of 3-0 is a minority verdict and that “should not be implemented”.

He further added that the federal cabinet, in its recent meeting, pondered over the apex court’s orders and in view of the NA’s resolution, has sought the will of the parliament to take a final decision regarding the allocation of funds for general elections for the provincial assemblies of Punjab and KP.