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.
In an effort to strengthen the port’s economic importance, the Federal Government has made the decision to direct fifty percent of all imports from the public sector to Gwadar Port.
By taking this action, which has the backing of the Special Investment Facilitation Council, the port’s financial situation is going to be improved.
The Cabinet will be presented with a summary of imports through Gwadar by the Ministry of Maritime Affairs, which will take place after Prime Minister Shehbaz Sharif’s recent trip to China.
When the next Cabinet Meeting takes place, Ahsan Iqbal, the Federal Minister for Planning, Development, and Special Initiatives, will examine the Chinese offer for the Karachi to Hyderabad Section of the ML-1 Project and bring it to the Cabinet.
Company preparations for the Shanghai International Import Expo, which will take place in November 2024, are being made by the Board of Investment and the Ministry of Commerce of Pakistan.
One of the most important aspects of the China-Pakistan Economic Corridor is the Gwadar port, which serves as a significant commerce route connecting China, the Middle East, Africa, and Europe. At this time, the Gwadar Port is able to accommodate two huge ships, and by the year 2045, it is anticipated that it would be able to handle up to 150 ships.
By developing the Gwadar Port, regional connectivity would be improved, employment will be created, and international investment will be attracted.
Gold prices in Pakistan surged significantly on Thursday following two consecutive days of decline, with the price per tola rising by Rs2,000 to reach Rs262,100. This increase was in accordance with the downward trend in international market values.
The All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) reported that the price of 10 grams of 24-karat gold rose by Rs1,714, reaching Rs224,708.
Conversely, the world gold market experienced an upward trajectory. According to the APGJSA, the global price of gold surged to $2,503 per ounce following a $22 gain during the trading session.
The local market experienced a significant decline in silver prices, decreasing from Rs50 to Rs2,900 per tola after a prolonged period.
The local market’s gold prices remain subject to the ever-changing dynamics of the international market, as well as domestic considerations such as currency exchange rates and domestic demand.
On Tuesday night, there were virtual talks between representatives of the Finance Ministry and the IMF delegation, with the main topics being external finance and income generation.
According to people familiar with the situation, no date has been set for the IMF’s Executive Board to approve the loan despite the ongoing negotiations.
Officials from the Finance Ministry informed the IMF mission about the government’s initiatives to get outside funding during the discussions. Updates on loan rollovers and fresh finance commitments from allies were included in this. According to sources, the IMF has received a schedule, and loan rollovers are expected to be finished by the end of next week.
The $12 billion in debt must be rolled over before the loan can be approved by the Executive Board, according to the IMF mission.
In the virtual discussions, representatives of the Federal Board of Revenue (FBR) conversed with the IMF team over the revenue deficit. The FBR must reach its revenue goals for this month, according to the IMF mission. As a result, the IMF has asked the FBR to submit a thorough strategy outlining how it will close the gap left by the shortfall and guarantee that revenue goals are reached.
Apart from the conversations on outside funding, there are rumors that the Finance Ministry is actively holding talks with commercial banks in order to obtain new funding. According to reports, negotiations are taking place with four distinct sources for commercial loans, which are anticipated to support the government’s overall financial plan.
Finance Minister Muhammad Aurangzeb disclosed on Tuesday that the IMF was in favor of introducing targeted subsidies. He said that qualifying recipients might receive these subsidies through the Benazir Income Support Programme (BISP).
In order to guarantee consistency, the minister announced that this week’s talks with chief ministers will focus on implementing a similar policy across the country. He was having a casual conversation in parliament with the journalists.
In response to queries about outside funding, Aurangzeb revealed a $2 billion deficit and said that talks to close this gap are progressing. He stressed how crucial it is to obtain business loans.
He went on, “At this point, there’s a need to secure an agreement for commercial loans, not exactly their issuance,” emphasizing that debt rollover negotiations are nearing their conclusion and doing well. The minister expected that these developments would shortly be reported to the governments of allied countries by relevant authorities.