The State Bank of Pakistan and the federal cabinet Monday washed their hands of the issue of giving Rs21 billion to the Election Commission of Pakistan for holding elections in the Punjab province on May 14. Consequently, the matter landed at the Parliament once again.

Later, the National Assembly rejected the proposal for the release of the fund to the ECP.

The SBP said that it had reserved Rs21 billion for holding the election in the Punjab province but it cannot release the money to the Election Commission of Pakistan until the finance ministry granted its approval.

The federal government held a meeting and granted the approval but send the issue to Parliament saying that only the Parliament has the authority to approve the allocation.

Last week, the Supreme Court of Pakistan ordered the SBP to release the money required for holding the election by April 17. The court warned of consequences for noncompliance. Many read it as a contempt of court warning for the government.

NA panel on Finance

On Monday, SBP Acting Governor Seema Kamil told a National Assembly panel that the central bank on an order from the apex court had allocated Rs21 billion for holding the election in Punjab, but the money belonged to the federal government and will remain in its account until the finance ministry grants approval for its transfer to the ECP.

Kamil told the NA Standing Committee on Finance that the central bank officials had already informed the top court when they appeared before it last week that the SBP could merely earmark the money and that the finance ministry approval was mandatory.

The money lies with the federal government under the Federal Consolidated Fund where all government revenues are deposited.

The attorney general of Pakistan told the panel that money from the Federal Consolidated Fund could be used only after approval from the prime minister.

He said only the executive had the final say on the implementation of the Supreme Court judgment.

State Minister for Finance Aisha Ghaus Pasha told the meeting that the government would act according to what had been laid down in the law. We can send a summary to the federal cabinet, she said.

When the federal cabinet approves the summary, the matter could be sent to the Parliament since the government cannot allocate funds without parliamentary approval, said the minister.

After deliberations, the NA panel decided that the matter will be referred back to the Parliament.

Federal cabinet

Later, the federal cabinet held its meeting under Prime Minister Shehbaz Sharif.

The meeting discussed a summary moved by the finance ministry for the release of Rs21 billion to ECP and approved it.

The cabinet referred the summary to the National Assembly for final approval.

Law Minister Azam Nazeer Tarar told reporters that the summary for a supplementary grant had been sent to the NA.

“The State Bank of Pakistan (SBP) has no role in releasing funds. It is the National Assembly and finance ministry’s prerogative,” said the minister.

SC deadline expires

The development in the NA standing committee on finance came on the day SC deadline for the release of the fund is to expire.

A three-member bench led by CJP Umar Ata Bandial ordered the State Bank of Pakistan to issue funds for the elections last week.

After examining reports submitted by the officials, the bench ordered that funds should be issued by the SBP directly to the Election Commission.

The order said that the Ministry of Finance should give directions to the AGPR to raise the ceiling of the Election Commission’s funding.

“Likewise, the Election Commission shall on 18.04.2023 file a report with this Court confirming that Rs.21 Billion have become available to it in terms as stated above.”