Controversy around Pakistani anti-graft body thickens as new law challenged in high court

A flock of birds fly over the Lahore High Court in this undated file photo. (Photo courtesy: social media)
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Updated 10 October 2021
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Controversy around Pakistani anti-graft body thickens as new law challenged in high court

  • Petition filed in Lahore court says changing law to accommodate one individual “illegal, mala fide, and unconstitutional”
  • Opposition’s biggest contention is that ordinance paves way for incumbent NAB Chairman to continue holding post

ISLAMABAD: An ordinance signed by the Pakistani president this week to curtail the jurisdiction of the country’s anti-corruption watchdog by excluding key government entities from the ambit of investigations and enabling the president to reappoint the body’s chief or extend their tenure has been challenged in the Lahore High Court, local media reported on Sunday.

The government and the opposition in Pakistan have been at loggerheads in recent weeks over the legislation which allows key changes in the National Accountability Bureau (NAB). The opposition says the amendments will allow the government to use NAB to go after political opponents.

The opposition’s biggest contention is that the ordinance paves the way for incumbent NAB Chairman Justice (retd) Javed Iqbal to continue holding his post until the appointment of his successor.

A petition filed in the Lahore High Court on Saturday said changing the law to accommodate or benefit a single individual was “patently illegal, mala fide, and unconstitutional.”

In Pakistan, an ordinance is a law promulgated by the president, when parliament is not in session, in exercise of the powers vested in him by Article 89 of the Constitution, for a limited time only.

“An ordinance cannot be allowed to override the parliament since assembly is there, and a session can be called at any time,” the petitioner’s counsel, Ishtiaq A. Chaudhary, said.

“Any attempt to subvert, bypass or nullify the effect of any provision of the constitution by parliament or the executive is liable to be struck down by this court which being the custodian of the constitutional mandate to interpret the Constitution.”

The lawyer contended that the recent amendment was “a mockery of parliament.”

He asked the court that the writ petition be accepted on the ground that the amendment made to the NAB ordinance was “person-specific,” referring to the current NAB chief, and promulgated to favor a single individual.

As per the new ordinance, signed on Wednesday, its provision will not be applicable to the following persons or transactions:

“All matters pertaining to Federal, Provincial or Local taxation, other levies or imposts, including concealments, refunds, criminality, criminal intention or loss of exchequer pertaining to taxation; decisions of Federal or Provincial Cabinet, their Committees or Sub-Committees, Council of Common Interests (CCI), National Economic Council (NEC), National Finance Commission (NFC), Executive Committee of the National Economic Council (ECNEC), Central Development Working Party (CDWP), Provincial Development Working Party (PDWP) and Departmental Development Working Party (DDWP), or decisions of the Boards of the State Bank of Pakistan,” a copy of the document seen by Arab News says.

The ordinance’s provisions will also not apply to any “person or entity, which are not directly or indirectly connected with the holder of a public office; procedural lapses in any public or governmental work, project or scheme, unless it is shown that a holder of public office or any other person has been conferred or has received any monetary or other material benefit from that particular public or governmental work, whether directly or indirectly on account of such procedural lapses, which the said recipient was otherwise not entitled to receive; an advice, report or opinion rendered or given by a public office holder or any other person in the course of his duty, unless there is sufficient evidence to show that the holder of public office or any other person received or gained any monetary or other material benefit, whether directly or indirectly, on account of such advise, opinion or report, which the said recipient was otherwise not entitled to receive.”

To grant extension in the tenure of the NAB chairman, sub-section b of Section 6 of the National Accountability Ordinance (NAO) has been amended by excluding the word “non-extendable” from the statute.

The amended ordinance has retained the provision that requires consultation between the opposition leader and the leader of the house in the National Assembly for the appointment of the NAB chairman. But the section states that the president would consult both of them.

“There shall be a Chairman, National Accountability Bureau to be appointed by the President in consultation with the Leader of the House and the Leader of the Opposition in the National Assembly. The Chairman shall hold office for a period of four years on such terms and conditions as may be determined by the President and shall not be removed from office except on grounds provided for the removal of a Judge of Supreme Court in the manner and by the forum provided under Article 209 of the Constitution of Pakistan,” the document reads.

“Provided that on expiry of the period of four years, the incumbent Chairman may be appointed for another period of four years by the President...”

The ordinance has enhanced the authority of the NAB prosecutor general, empowering him to play a crucial role in advising the chairman to file or withdraw any reference from a court. 

It has also allowed the accountability court to grant bail to any accused. Under the NAB law previously, there was no provision of granting bail to the accused as an under-custody suspect could only apply for bail after the expiry of his 90-day remand and that too under the extraordinary jurisdiction of the high court, under Article 199 of the Constitution of Pakistan, which empowers the court to enforce fundamental rights.

The ordinance also allows the appointment of retired judges of high courts as accountability judges. In addition, it provides that a district and sessions judge and an additional district and sessions judge may also be designated as the judge of an accountability court with the consent of the chief justice of the concerned high court.


JazzCash signs deal with Binance in UAE to explore regulated crypto adoption in Pakistan

Updated 24 min 59 sec ago
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JazzCash signs deal with Binance in UAE to explore regulated crypto adoption in Pakistan

  • MoU focuses on awareness and development of compliant virtual-asset solutions in Pakistan
  • Pakistan introducing licensing regime for crypto firms as it formalizes digital-asset oversight

ISLAMABAD: Pakistani financial-technology platform JazzCash has signed a memorandum of understanding with global cryptocurrency exchange Binance in the United Arab Emirates to explore cooperation on virtual-asset use and education in Pakistan, the company said on Wednesday.

The agreement sets a framework for discussions on awareness campaigns and future digital-asset products that would comply with Pakistan’s emerging crypto regulations. The move signals growing engagement between global blockchain companies and Pakistani fintechs as authorities shift toward formal licensing of the sector.

Pakistan has spent the past year drafting rules to regulate the fast-expanding market for digital coins and tokens, requiring virtual-asset service providers to obtain government approval. Officials say the transition is aimed at curbing money-laundering and terror financing risks, boosting transparency and encouraging responsible innovation.

“JazzCash has always championed technologies that expand financial access while promoting secure and inclusive participation in the digital economy," JazzCash Chief Executive Officer Murtaza Ali said. 

“By entering into this exploratory MoU with Binance, we are advancing our efforts to understand how global digital-asset trends can support Pakistan’s evolving regulatory landscape. We aim to engage responsibly, support regulatory progress, and advance opportunities that build trust, transparency and innovation for our customers.”

The MoU does not establish a commercial partnership, but marks one of the most high-profile engagements between Pakistan’s fintech sector and a global crypto exchange as the country moves toward regulated digital-asset adoption.

Binance welcomed the cooperation, framing it as part of Pakistan’s shift toward regulated digital-asset activity.

"With regulatory frameworks like [Pakistan Virtual Assets Regulatory Authority] PVARA paving the way, this collaboration represents a significant step toward expanding financial inclusion and empowering more people to access the benefits of blockchain technology in a secure and compliant environment," Binance Chief Marketing Officer Rachel Conlan said.

Earlier this month, Binance executives met Pakistani finance officials to discuss digital-payments reform, blockchain-skills training and the potential for Web3-linked jobs. Pakistan also set up the Pakistan Crypto Council and formed PVARA this year to license and supervise crypto-asset service providers.