Centre, Sindh eyeing Rs89bn lying with SC to help flood victims

ISLAMABAD: The federal and Sindh governments are considering approaching the Supreme Court of Pakistan with the request to release about Rs89 billion of Dam Fund and Bahria Town deposits to the concerned governments to help the flood-affected people and rebuild and reconstruct the massive destruction caused by the ongoing inundation.

Informed sources said that the federal government is discussing to formally approach the SC to release these funds/deposits as the country badly needs funding to help millions of flood-affected people and rebuild the damaged infrastructure. Both the Dam Fund and the Bahria Town deposits are with the SC.

These sources said that the federal government wants to claim the Dam Fund, which is around Rs14 billion, and intends to use it for the reconstruction of dams damaged by the floods. Some of the major dams faced damages whereas many small dams have been swept away by the flood, mainly in Balochistan.

Regarding the Bahria Town deposits, which are said to be around Rs75 billion, including Rs50 billion that was transferred to the Government of Pakistan by National Crime Agency, UK, as a settlement with Bahria Town, the federal government may suggest its transfer to the provinces, mainly the Sindh government for rehabilitation and reconstruction there.

The federal government sources said that the Sindh government is also contemplating approaching the apex court to get the deposits of Bahria Town. The Bahria Town deposits relate to its settlement, made through the Supreme Court, of cases pertaining to its Karachi Super Highway project.

Previously, during the Imran Khan government, there was a dispute between the federal and Sindh governments over the claim of Bahria Town deposits. On August 22, 2019, the federal government had moved the Supreme Court, requesting that the Rs25 billion deposited by the Bahria Town Karachi management and held by the apex court be deposited in its public account.

The then attorney general for Pakistan Anwar Mansoor Khan had told the court that the federal government had filed a civil miscellaneous application (CMA) in the implementation of judgment delivered in 2018 in the Bahria Town Karachi’s case.

It was contended by the PTI government that as per provision of Article 78(2)(b) of the Constitution, any money received by or deposited in the Supreme Court of Pakistan is liable to be credited to the public account of the Federation. The federal government submitted that the Bahria Town Karachi had already made a payment of Rs25 billion, adding that the first instalment of Rs2,500,000,000 will commence from September 1, 2019 after which the balance payment was required to be made in 36 equal monthly instalments, along with four per cent markup, charged annually with effect from September, 1, 2023.

Later, the provincial government of Sindh filed a petition in the Supreme Court praying that Rs25 billion deposited by the Bahria Town Karachi management and held by the apex court be deposited in its public account. The real estate giant had deposited the amount in an SC account as down-payment of Rs460 billion.

In its petition, the provincial government stated that the province is currently facing a budget deficit. It said that during the previous fiscal year, the Federation only issued Rs9 billion of Rs14 billion to the province in the Public Sector Development Programme (PSDP). The provincial government stated that the ongoing development projects may be delayed due to financial problems faced by the province.The Sindh government had assured that all this money would be spent through a supervisory committee.

The SC at that time did not give this money to any of the governments. Late towards the end of 2019, the UK’s NCA transferred around Rs50 billion to the Government of Pakistan following a settlement with Bahria town.

The PTI government, however, instead of depositing this money in the public kitty forwarded it to the SC as Bahria Town money.

The present government sources said that this is high time to use the Dam Fund and Bahria Town deposits for the best interest of the people and country. Already, Pakistan is facing serious financial problems and therefore, the availability of these funds would help in a great manner to assist the flood affected people and in the rebuilding of damaged infrastructure.