IN THE SUPREME COURT OF PAKISTAN 
 
   (Original Jurisdiction) 
 
 
PRESENT: 
MR. JUSTICE JAWWAD S. KHAWAJA 
MR. JUSTICE IQBAL HAMEEDUR RAHMAN 
MR. JUSTICE MUSHIR ALAM 
 
Constitution Petition No.26 of 2013 
 
Khurram Shahzad Chughtai  
 
… 
Petitioner(s) 
 
 
 
 
 
 
Versus 
Federation of Pakistan and others  
 
… 
Respondent(s) 
 
For the petitioner(s):  
Mr. Ali Raza, ASC 
 
 
 
 
Mr. Tariq Aziz, AOR 
 
For the applicant(s):  
Mr. Athar Minallah, ASC (in CMA-7108/13) 
 
On Court’s Notice: 
 
Mr. Salman Aslam Butt, Attorney General for Pakistan.  
 
For respondent No.1:  
Mr. Imran ul Haq Khan, DAG 
(M/o IT) 
 
 
Mr. Muhammad Ayub, Dy. Manager (Legal) 
 
For respondent No.2:  
Dr. Ismail Shah, Chairman 
(PTA)  
 
 
Mr. Tariq Salman, Member (Finance) 
 
 
 
 
Mr. Khurram Siddiqui, Director (Law) 
 
 
 
 
Mr. Munawwar Iqbal, Consultant (Legal) 
 
 
 
 
Mr. Faraz Khan Jadoon, L.O. 
For respondent No.3:  
Nemo. 
(FAB)  
 
 
 
 
For respondent No.4:  
Syed Sibt-e-Hassan Gardezi, Acting G.M. (Law) 
 
 
 
 
Mr. Kamran Masood, Manager (F) 
 
On Court’s Notice: 
 
 
For Cabinet Division:  
Mr. Jamil Ahmed, Sh. S.O. 
 
For M/o Finance: 
 
Nemo. 
  
Date of hearing  
 
17.03.2014 
 
ORDER 
 
 We have heard this matter partly. As noted in our previoius order we are anxious 
that this matter is decided at the earliest and if possible, before the auction of 3G and 4G 
licences. We are told that previously the date of this auction was fixed as 7th April, but 
now it has been postponed to 23rd April, 2014.  
2. 
Today, while hearing this petition, we asked the learned Attorney General to show 
the method of book keeping of the USF and the treatment of the Fund, after the monies of 
the USF were transferred to the Federal Consolidated Fund (FCF). He stated that the 
Ministry of Finance would be aware of the book-keeping but today no representative of 
Const.P.26 of 2013 
2
the said Ministry, conversant with this aspect of the case is present. He shall, therefore, 
ensure presence of a fully conversant functionary of the Ministry of Finance to be present 
in Court tomorrow i.e. 18th March, 2014.  
3. 
Additionally, it will be the office of the Auditor General and the Accountant 
General of Pakistan Revenue (AGPR), who will be fully aware of the rules applicable to 
the FCF.  Mr. Athar Minallah, learned ASC states that the Auditor General has already 
determined and prepared the Manual of Accounting Principles in exercise of powers 
under Article 170 of the Constitution in respect of the FCF. This will help in determining 
the status/constitutionality of the transfer of USF funds from the National Bank and eight 
other scheduled Banks to the FCF. The office shall issue notice to the Auditor General and 
to the AGPR Islamabad who may depute officers of their relevant departments 
conversant with the Manual of Accounting Principles as well as the manner in which the 
USF and the FCF are maintained and audited according to such Manual.  
4. 
Today, we were also informed by Mr. Kamran, Manager (Finance), USF that prior 
to the amendment in the USF Rules made in 2013, the USF was earning interest/profit on 
the funds. In the financial year ending 30th June, 2013 a sum of rupees 5.6 billion was 
earned by the USF as income on the monies of the fund deposited with the National Bank 
and other scheduled Banks. The Manager (Finance) stated that after the transfer of monies 
of USF to the FCF not a single rupee has been earned on the sums belonging to the USF.  
5. 
The learned Attorney General for Pakistan submitted that the fundamental issue 
in this case will revolve around whether or not the monies in the USF can be transferred 
to the Federal Consolidated Fund (FCF). He stated that even if it is held that the monies in 
the USF cannot be transferred to the FCF, the fact remains that the investments of USF 
could have yielded a much higher return than the sum of rupees 5.6 billion as noted 
above.  
6. 
Let this matter come up for hearing as a part-heard case on 18th March, 2014.  
 
JUDGE 
 
JUDGE 
 
 
JUDGE  
Islamabad 
17th March, 2014 
M. Azhar Malik