IHC special bench to take up NFC plea tomorrow

PML-N leader also files a miscellaneous application requesting court to suspend May 11 notification

ISLAMABAD: A special bench of the Islamabad High Court (IHC) will take up on Monday – June 29 – a petition challenging constitution of the 10th National Finance Commission (NFC) Award.

The IHC registrar office on Saturday announced the division bench headed by Chief Justice Athar Minallah and comprising Justice Miangul Hasan Aurangzeb.

A single bench comprising Justice Miangul was earlier hearing the petition that was filed on May 20 by the PML-N leader and former federal minister Khurram Dastgir.

However, Justice Miangul on June 24 requested the IHC chief justice to form a division bench in view of the significance of the case.  Justice Miangul has already issued notices to all respondents including the Finance Division and sought replies from them.

The NFC is meant to distribute financial resources among the federal government and the provinces and includes distribution of taxes collected by the federal government.

According to Article 160 of the Constitution, the president constitutes the NFC after every five years for a period of five years. Once there is a consensus among all stakeholders on a particular formula to distribute the finances, the award is implemented for the next five years.

The PTI led federal government on May 12 formed the 10th NFC to announce the new award. The Ministry of Finance notified constitution of the 11-member commission after approval by federal and provincial members and its terms of reference (ToRs) by President Arif Alvi.

The commission, however, effectively consisted of 10 members as the president also authorized the Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh to chair the NFC meetings.

Interestingly, there is no room in the Constitution for a PM’s adviser to become even a member of the commission. The commission comprises four provincial finance ministers and four non-statutory members representing the provinces and the federal finance secretary as official expert.

PML-N’s Khurram Dastgir on May 20 challenged the commission, requesting the court to set aside government’s May 12 notification that announced the commission’s composition and authorized Dr Abdul Hafeez Sheikh to preside over the NFC meetings.

On Saturday, Dastgir through his counsel Umar Gillani also filed a miscellaneous application to suspend the NFC notification and take appropriate action against the government for not submitting any replies despite the court’s repeated notices.

According to the application, the IHC issued notices to the respondents including the Finance Division on May 28, June 4 and June 22 but the respondents ignored these notices.

It said the government also did not submit a reply to the petitioner’s objection to appointing Dr Hafeez Shaikh and the secretary finance as members of the commission.

The application also referred to the Balochistan High Court’s (BHC) June 25 order to nullify appointment of Dr Shaikh and the federal finance secretary as the NFC.

The BHC also annulled the ToRs issued by President Alvi for the NFC and ordered implementation of the NFC rules under Article 160 of the Constitution for appointment of NFC members.

Famous economist Dr Qaiser Bengali on June 11 also challenged composition of the 10th NFC award by filing a petition in the Sindh High Court and contended that the May 12 notification for formation of the commission is contrary to Article 160 of the Constitution.