Does president have power to declare financial emergency in a province?

ISLAMABAD: With the new financial year fast approaching, constitutional provisions granting the president of Pakistan the power to declare a financial emergency are drawing attention, particularly in light of recent budgetary challenges faced by provincial governments.

Article 235 of the Constitution of Pakistan empowers the president to declare a financial emergency should the economic or financial stability of a province or the entire country be under threat.

This crucial provision serves as a safeguard to protect the nation's economic life during times of severe financial crisis, The News reported.

Should such an emergency be declared, the federal government gains significant authority to issue binding directives to the provinces, aimed at enforcing financial discipline. 

These directives can encompass a range of measures, including mandated cuts in government expenditures, reductions in the salaries and allowances of public servants, and the strict enforcement of principles of financial propriety.

The potential implications of Article 235 were recently underscored in the context of Khyber Pakhtunkhwa. 

The Pakistan Tehreek-e-Insaf (PTI) government in the province could have faced a significant loss of its financial autonomy under this article, had its provincial assembly failed to pass the budget before the commencement of the new financial year. 

Such a failure could have been interpreted as a threat to the province's financial stability, triggering the president's emergency powers.

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."

KP Chief Minister 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 Khan had shared with him earlier.