National Savings, PIBs: SHC orders finance secy to release Rs 1 billion for investment

KARACHI: Sindh High Court (SHC) has ordered Finance Secretary Sindh to release Rs1,000 million of endowment fund allocated in current budget in one month to invest in government schemes such as National Savings or Pakistan Investment Bonds (PIBs).

The SHC bench headed by Justice Salahuddin Panhwar in a written order of multiple petitions related to social protection, orphanage houses and endowment fund issued these orders.

Court order stated that Secretary Finance submitted a report, which stated that amount has not been invested so far in any scheme.

Additional Secretary Endowment Fund informed the court that issue is pending for approval of Board. Court observed that since principal amount of endowment cannot be released / used by any authority and same has to be invested in profitable scheme; approval for a legal obligation rather duty (commandment of law itself) is never requirement of law, therefore, keeping such mandatory investment for / in name of approval is quite illogical, particularly when such delay is resulting in depriving the deserved from use of profit which shall come only after investment.

Accordingly, Secretary College Education shall ensure that the amount is invested in any government scheme like National Saving Center and P.I.B without any further delay in same way as already exercised, thereafter such formal approval may be taken from the concerned Board, in case of failure contempt proceedings shall be initiated against Secretary College Education, Court maintained.

Court directed Finance Secretary to release the amount of Rupees 1000 million within one month as allocated in current budget and same shall also be invested in same manner. Additional Secretary Endowment Fund contended that Trust with regard to amount and utilization is final and that is before the Registrar District South, Karachi, for registration. Court ordered concerned Registrar shall complete the registration process within fifteen days subject to requirement of law. In case of failure, he shall appear in person with explanation.

Court also issued directives of Federal Investigation Agency (FIA) de-freeze the amount of Rs. 2,98,00,000 seized in enquiry No.64/2017, Commercial Bank Circle, FIA, Karachi and release the same in favour of Sindh Education Endowment Fund and ordered Additional Secretary present to ensure that same is also invested in same way as aforesaid. Inspector Mukhtar Ahmed Bhutto, FIA, enquiry officer assured that court that such amount would be released without any delay.

Copyright Business Recorder, 2020