Can president declare financial emergency in a province?

ISLAMABAD: The President of Pakistan, under Article 235 of the Constitution, can declare a financial emergency if the economic or financial stability of a province or the country is threatened.

In such a situation, the federal government is empowered to issue binding directions to the provinces to ensure financial discipline. These directions may include steps such as cutting government expenditures, reducing salaries and allowances of public servants, and enforcing principles of financial propriety. This constitutional provision is meant to safeguard the economic life and creditworthiness of the country or any of its parts during serious financial crises.

The Pakistan Tehreek-e-Insaf (PTI) government in Khyber Pakhtunkhwa could have lost its financial autonomy under Article 235 of the Constitution if the provincial assembly had failed to pass the budget before the start of the new financial year. Under this article, the President of Pakistan has the power to declare a financial emergency if the economic life, financial stability, or credit of the country — or any of its provinces — is found to be under threat.

The Article 235 of the Constitution of Pakistan states: “If the President is satisfied that a situation has arisen whereby the economic life, financial stability or credit of Pakistan, or any part thereof, is threatened, he may, after consultation with the Governors of the Provinces or, as the case may be, the Governor of the Province concerned, by proclamation make a declaration to that effect, and while such a proclamation is in force, the executive authority of the Federation shall extend to the giving of directions to any province to observe such principles of financial propriety as may be specified in the directions, and to the giving of such other directions as the President may deem necessary in the interest of the economic life, financial stability or credit of Pakistan or any part thereof.

(2) Notwithstanding anything in the Constitution, any such directions may include a provision requiring a reduction of the salary and allowances of all or any class of persons serving in connection with the affairs of the Province.

(3) While a proclamation issued under this Article is in force the President may issue directions for the reduction of the salaries and allowances of all or any class of persons serving in connection with the affairs of the Federation.

(4) The provisions of clauses (3) and (4) of Article 234 shall apply to a proclamation issued under this Article as they apply to a proclamation issued under that Article.”

Chief Minister Khyber Pakhtunkhwa Ali Amin Gandapur, while talking to media persons, said he could have been disqualified if he had failed to pass the budget before the deadline. When asked who told him that he might lose his government or face disqualification if the budget was not approved before the new financial year started, he replied that it was his legal team that gave him the legal advice based on the possible consequences under the Constitution.

Ali Amin Gandapur is facing strong pressure from within his own party. PTI workers have raised questions about his decision. Even Imran Khan has expressed displeasure and told party leaders that he was not happy with Gandapur for passing the budget without including the budgetary suggestions that Imran Khan had shared with him earlier.