Business

Back to square one: NA body refers election funds issue to cabinet

Published

2 years ago

Farwa

SBP says funds allocated but don’t have authority to release.
“If NA allows funds can be released to ECP,” state minister says.
Law minister says this issue will be resolved today.

ISLAMABAD: After a heated debate over the Supreme Court’s order to the central bank directing it to release the funds directly to the Election Commission of Pakistan (ECP), the National Assembly’s Standing Committee on Finance and Revenue on Monday decided to refer the issue to the cabinet as the deadline to release Rs21 billion ends today.

The Supreme Court on April 14 directed the central bank to release funds worth Rs21 billion for elections in Punjab and send an “appropriate communication” to this effect to the finance ministry by Monday (April 17).

A special meeting of the NA panel was summoned today as the deadline given to the SBP for releasing funds to the electoral body ends today.

The bench, headed by Chief Justice of Pakistan (CJP) Umar Ata Bandial and comprising Justice Ijazul Ahsan and Justice Munib Akhtar, conducted an in-chamber hearing last week regarding the non-implementation of its April 4 order to the federal government to release the funds and directed the central bank to release funds.

The directives came after the electoral body submitted a report informing the apex court that the Ministry of Finance has failed to release funds as ordered by the three-member bench on April 4.

At the outset of the meeting today, State Bank of Pakistan (SBP) Acting Governor Sima Kamil informed the NA panel the regulator has allocated Rs21 billion for the ECP to conduct polls in Punjab on the directives of the Supreme Court, however, it does not have the authority to release funds directly.

Law Minister Senator Azam Nazeer Tarar informed the panel that the Ministry of Finance had already said that it does not have sufficient funds to hold elections in Punjab on May 14.

“Spending twice on elections is not in the country’s interest”, the law minister said, adding that the apex court had directed the central bank to arrange the funds.

He maintained that the trustees of government funds are elected representatives of the people.

It should be noted that Finance Minister Ishaq Dar was also summoned by the NA body, however, he didn’t attend the meeting today as he was in Saudi Arabia to perform Umrah, according to sources.

PML-N leader Barjees Tahir added that if the central bank releases funds directly to the electoral body it will be against the law.

“How can the Supreme Court direct the SBP to release funds?” Tahir questioned, adding that if elections are held in Punjab separately it will affect the results of the general elections of the other three provinces later.

The central bank’s acting governor, addressing the criticism it received for allocating the funds, explained to the lawmakers that by allocating the funds the amount will remain in the account.

She further added that they appeared before the Supreme Court on its directive and informed the apex court that the central bank can allocate funds; however, it cannot release the funds.

Meanwhile, State Minister for Finance and Revenue Aisha Ghaus Pasha emphasised that the SBP cannot spend money without the permission of the parliament.

“If the National Assembly allows funds can be released [to the ECP],” she said, clarifying that even the Finance Division cannot spend without seeking permission from the cabinet and the lower house.

Meanwhile, the law minister said that this issue will be resolved today as cabinet and National Assembly sessions are also scheduled.

It should be noted that the summary will also be presented in the National Assembly after the approval of the cabinet.

Business

SFD and Pakistan Sign Two Deals Totaling $1.61BLN

Published

1 day ago

Farwa

Two agreements totaling $1.61 billion have been inked by Pakistan and the Saudi Fund for Development to improve their bilateral economic cooperation.

Business

Saudi Arabia and Pakistan sign an MOU to strengthen their auditing industry collaboration.

Published

1 day ago

Farwa

A spokesperson for the office of the Auditor-General of Pakistan (AGP) announced on Monday that the two countries have signed a Memorandum of Understanding (MoU) to strengthen cooperation in public sector auditing through improved cooperation between audit institutions of both countries, as well as training programs and the exchange of trainers.

This comes as a group from Saudi Arabia’s General Court of Audit (GCA), headed by GCA President Dr. Hussam bin Abdulmohsen Alangari, arrived in Pakistan on Sunday for a four-day visit.

The agreement was signed during AGP Muhammad Ajmal Gondal’s meeting with the Saudi delegates, aiming to strengthen audit cooperation, enhance knowledge-sharing, and improve governance, transparency and accountability in government spending.

Public relations officer Muhammad Raza Irfan of the AGP’s office told Arab News that the deal will further advance bilateral collaboration between Saudi Arabia and Pakistan in addition to enhancing professional ties between the two nations’ auditing institutions.

In a statement released from his office, AGP Gondal was cited as saying, “This collaboration marks a significant step toward fostering international cooperation in auditing.”

“The exchange of ideas and methodologies will undoubtedly strengthen our capacity to meet emerging challenges and set new benchmarks for public accountability.”

Discussions at Monday’s meeting focused on fostering closer ties between the Supreme Audit Institutions (SAIs) of Pakistan and Saudi Arabia, sharing innovative audit methodologies, and planning collaborative initiatives for the future, according to the AGP office.

The two parties decided to increase their knowledge of theme, environmental, and impact audits as well as to exchange best practices in audit standards, performance audits, and citizen participation audits.

The statement added, “It also agreed to exchange trainers, address new auditing challenges, plan cooperative audits, including a performance audit on the oil and gas sector in 2025, and work together on training programs.”

Both sides reaffirmed their shared commitment to promoting transparency, accountability and excellence in public sector auditing.

Business

The government chooses to continue the PIA privatization process.

Published

1 day ago

Farwa

The Pakistan International Airlines (PIA) privatization process will be restarted by the federal government, and expressions of interest would be requested within the month. Officials stated that the Prime Minister’s Committee on Privatization will convene to make the final decision.

Usman Bajwa, the secretary of the Privatization Commission, gave a briefing on the updated procedure to the National Assembly Standing Committee on Privatization. Additionally, he disclosed that airlines other than PIA are now able to compete with regional carriers thanks to IMF-approved aircraft tax concessions.

Farooq Sattar, the chairman of the privatization committee, underlined the importance of giving PIA workers at least five years of job security. Employee protection will continue to be a top priority and will be resolved prior to bidding, the Privatization Commission promised.

PIA’s liabilities totaling Rs650 billion have already been assumed by the government, and an additional Rs45 billion in outstanding debts must be paid before the privatization process can begin. As of the now, PIA has assets around Rs155 billion and liabilities worth Rs200 billion. It will be necessary for the new buyer to expand the fleet by 15 to 20 aircraft.

Additionally, the Privatization Committee has sought a timeline for the privatization of Faisalabad, Gujranwala, and Islamabad Electric Supply Companies. Officials stated that after the appointment of a financial advisor, the privatization process for these companies will accelerate.