Daily Times

ISLAMABAD: The Supreme Court of Pakistan on Thursday ruled that the prime minister cannot take any decision relating to fiscal matters without the prior approval of the cabinet as the Federal Government is the collective entity described as the Cabinet constituting the Prime Minister and Federal Ministers.

“Neither a Secretary, nor a Minister and nor the Prime Minister are the Federal Government and the exercise, or purported exercise, of a statutory power exercise-able by the Federal Government by any of them, especially, in relation to fiscal matters, is constitutionally invalid and a nullity in the eyes of the law,” the top court ruled.

Justice Mian Saqib Nisar authored a 75-page judgment after hearing importers of cellular phones and textile goods. The importers had challenged the order of Islamabad High Court (IHC), wherein the tax on import of such goods was declared lawful.

The top court also ruled that budgetary expenditure or discretionary governmental expenditure could only be authorised by the Federal Government, i.e. the Cabinet, and not the Prime Minister on his own.

The judgment said that Rule 16(2), which apparently enables the Prime Minister to bypass the Cabinet, is ultra vires adding that any Act, or statutory instrument (e.g. the Telecommunication (ReOrganisation) Act, 1996) purporting to describe any entity or organization other than the Cabinet as the Federal Government is ultra vires and a nullity.

“The ordinance making power can only be exercised after a prior consideration by the Cabinet. An ordinance issued without the prior approval of the Cabinet is not valid,” the judgment said.

Similarly, no bill can be moved in Parliament on behalf of the Federal Government without having been approved in advance by the Cabinet. The Cabinet has to be given a reasonable opportunity to consider, deliberate on and take decisions in relation to all proposed legislation, including the Finance Bill or Ordinance or Act. Actions by the Prime Minister on his own, in this regard, are not valid and are declared ultra vires.

The top court further declared that Fiscal notifications enhancing the levy of tax issued by the Secretary, Revenue Division, or the Minister, are ultra vires.

Earlier, the appellants enjoyed certain exemptions from sales tax granted by the Federal Government. Subsequently the exemptions were either withdrawn or the tax rates were modified for cellular phones pursuant to Sections 3(2)(b), 3(6), 8(1)(b), 13(2)(a) and 71 of the Sales Tax Act, 1990.

MDA’S PANHWAR: Meanwhile, the Supreme Court of Pakistan has directed member of Malir Development Authority (MDA) Atta Muhammad Panhwar to report to the establishment division. The top court also directed establishment division to submit a written statement regarding the appointment of Panhwar in federation within a day.

The top court observed that there was no importance of summary forwarded by any ministry after the judgment of Supreme Court. A two-judge bench headed by Justice Amir Hani Muslim and comprising Justice Dost Muhammad on Thursday resumed the hearing of a matter relating to the posting of Atta Muhammad Panhwar as member of the MDA, allegedly violating the top court’s verdict regarding transfers and postings.

During the course of the hearing, the court was informed that Panhwar was posted as a member of the MDA after attaining the law department’s opinion on the matter. Upon this, Justice Amir Hani Muslim observed that it was something that would not be allowed as it was against the judgment of the Supreme Court through which directives were issued to repatriate Panhwar. He questioned why the Sindh government extended support to Atta Muhammad Panhwar.

Sindh Chief Secretary, Additional Secretary Establishment and Secretary Services Sindh, who were present on this occasion, tendered unconditional apologies with an assurance to withdraw the notification of Panhwar posting him as member of the MDA. Accepting the unconditional apology, the bench observed that in the first phase, Secretary Establishment was bound to observe the apex court’s orders in Panhwar matter.

While the court was dictating an order in the matter, Atta Muhammad Panhwar pleaded that his salary had not been paid since 2013 to which the bench asked the Additional Secretary Establishment to look into the matter. The court disposed of the case.