Government decides to seek parliament’s guidance on Punjab election funds

In this file picture, taken on July 16, 2022, police and electoral officers carry voting materials at a distribution centre in Lahore. (Photo courtesy: AFP/File)
Short Url
Updated 09 April 2023
Follow

Government decides to seek parliament’s guidance on Punjab election funds

  • PM Shehbaz Sharif chairs federal cabinet meeting in Lahore to discuss Punjab elections
  • Pakistan’s apex court last week told government to issue Rs21 billion to ECP by April 10

ISLAMABAD: In a decision likely to put the government on a collision course with the judiciary, the federal cabinet on Sunday decided to seek the parliament’s guidance on releasing funds for elections in Pakistan’s most populous Punjab province.

In a landmark judgment last week, the Supreme Court of Pakistan ordered elections to be held in Punjab on May 14, saying that the Election Commission of Pakistan’s (ECP) earlier decision to delay polls to October 8 from April 30, owing to security and lack of funding reasons was “unconstitutional.”

The top court also directed the federal government to release Rs21 billion in funds to the ECP by April 10 so that it can conduct the polls. The Supreme Court had also ordered Pakistan’s election regulator to submit a report on the funds by April 11.

The apex court’s judgment has increased tensions between the government and the judiciary, with the former sticking to its guns that polls for both assemblies should be held on the same day since it is economically viable. The ruling Pakistan Muslim League-Nawaz (PML-N) has called on Chief Justice Umar Ata Bandial to resign, calling the three judges who gave the verdict “biased” in favor of ex-PM Imran Khan.

On Sunday, PM Sharif presided over a federal cabinet meeting in Lahore where Pakistan’s political situation and the judiciary’s recent verdict were discussed in detail.

“After detailed discussions and considering all aspects, the cabinet has unanimously decided to direct the Ministry of Finance to consult the law ministry and in accordance with relevant procedures and regulations, prepare a summary on seeking guidance from the parliament in this regard [elections fund] and present it in tomorrow’s cabinet meeting,” a statement from the Prime Minister’s Office (PMO) said.

The controversy over the delay in elections in Pakistan’s northwestern Khyber Pakhtunkhwa and Punjab provinces was triggered when former prime minister Khan’s party and its ally dissolved assemblies in both provinces.

The move was Khan’s attempt to force the government to declare early elections, as Pakistan has historically held polls on the same day for both national and provincial elections. However, according to Pakistan’s constitution, elections should be held after 90 days of the dissolution of a legislative assembly.

Khan says the government is “afraid” of his rising popularity hence it does not want to hold elections and has warned of nationwide protests if polls are delayed.

A joint session of Pakistan’s parliament will be held on Monday after President Arif Alvi returned a bill by the government aimed at clipping the chief justice’s powers. The bill curtailed the top judge’s authority to constitute benches and take suo motu notices (power of the court to take cognizance of a matter and take notice of it) in an individual capacity.


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

Updated 52 min 54 sec ago
Follow

IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.