IN THE SUPREME COURT OF PAKISTAN 
(Original Jurisdiction) 
  
PRESENT: 
Mr. Justice Iftikhar Muhammad Chaudhry, CJ 
Mr. Justice Gulzar Ahmed 
Mr. Justice Sh. Azmat Saeed 
          
Constitution Petition No.20 of 2013 
[Action against distribution of Development Funds by 
Ex-Prime Minister of Pakistan Raja Parvez Ashraf] 
 
ON COURT NOTICE 
For M/o Cabinet 
: Ms. Nargis Sethi, Secretary 
 
  
For M/o Finance 
: Mr. Sajjad Mehmood Butt, ASC/LA 
Mr. Abdul Rauf Khan, Addl. Secy (Exp) 
 
  
Date of Hearing 
: 19.04.2013 
 
ORDER 
IFTIKHAR MUHAMMAD CHAUDHRY, CJ.—The Secretary, 
Cabinet Division, Government of Pakistan, filed the requisite 
reply (CMA No.2222 of 2013) in pursuance of the earlier order 
dated 16.04.2013. She has explained the procedure of 
allocating the funds by the Prime Minister from Peoples Works 
Programme-II (PWP-II). However, she stated that according to 
the budgetary provisions, an amount of Rs.22 billion (annual) 
was made available to the Prime Minister with an authority to 
sanction the amount in favour of the Parliamentarians and 
Notables for the development programmes. She further stated 
that being the Cabinet Secretary, she is not aware about the 
criteria/preferences of the Prime Minister for making allocation 
to different development schemes, as this subject is assigned 
to the Special Secretary of the Prime Minister and no sooner a 
Const.P.No.20 of 2013 
2
sanction letter is issued, the same is processed in the Cabinet 
Division for onward transmission to the Accountant General 
Pakistan Revenues (AGPR) and the concerned Executing 
Agency. Admittedly, there is no system in place for monitoring 
the sanctioned funds. The AGPR is required to issue cheques 
to Executing Agency and then ultimately, it is only the 
Executing Agency, which had to monitor the execution of the 
development schemes. For our perusal, besides offering 
explanation about the expenditures of the PWP-II funds, a 
copy of sanction letter as a sample has also been placed on 
record.  
2. 
 
Prima facie, it seems that at the initial stage of 
sanctioning the funds from the Peoples Works Programme, no 
preliminary formalities were carried out about the feasibility 
etc. of the development programmes. It appears from the 
letter dated 15.04.2013, issued by Mr. Tahir Maqsood, 
Additional 
Secretary 
(P-I), 
Prime 
Minister’s 
Secretariat 
(Public), and the list attached therewith that on the demand of 
the Parliamentarians or the “Notables”, who somehow 
succeeded in approaching the Prime Minister for allocation of 
the funds for development from PWP, were obliged by making 
sanctions without following a transparent procedure nor the 
feasibility of the scheme for which the funds have been 
sanctioned was considered inasmuch as according to the list 
which has been furnished, not only the worthy Members of the 
Const.P.No.20 of 2013 
3
Parliament, the Members of the Provincial Assemblies, the 
“Notables” have succeeded in getting allocation of their 
schemes from the Prime Minister. The Prime Minister is a 
person who represents the Government and the citizens, 
therefore, in sanctioning/allocating funds for the schemes, he 
is bound to follow the high standard of transparency. In doing 
so for the well-being of the general public and for this 
purpose, a system has to be institutionalized following the 
recognized principles of exercising discretion judiciously. The 
Prime Minister, being elected representative, is required to 
follow the procedure to prove equitable distribution of funds 
for schemes without any discrimination in any manner. In the 
instant case, what we have noticed as former Prime Minster, 
Raja Pervaiz Ashraf sanctioned for himself the following 
amounts from time to time:- 
 
S.No. 
Dir 
No. 
Issue date 
Subject 
Beneficiary 
Amount 
Approved 
Released / 
stuck Up 
13 
0007 
27.07.2012 
Supply 
of 
gas 
to 
villages/localities in NA-51, 
Tehsil Gujjar Khan, District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
200.000 
Released 
14 
0130 
30.08.2012 
Supply 
of 
gas 
to 
villages/localities in NA-51, 
Tehsil Gujjar Khan, District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
433.365 
Released 
15 
0148 
30.08.2012 
Provision of gas to forty (40) 
villages 
/ 
seventeen 
(17) 
Union Councils for on-going 
projects in NA-51, District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
49.000 
Released 
16 
0776 
30.11.2012 
Supply of gas to Jungi Dam, 
Bains 
& 
Popur 
Khurd 
(enroute 
villages 
of 
operational line) in Tehsil 
Gujjar 
Khan, 
District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
29.895 
Released 
17 
0810 
14.12.2012 
Completion of on-going gas 
supply schemes in 17 Union 
Councils and 40 villages of 
NA-51, Gujar Khan, District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
50.003 
Released 
18 
0846 
04.01.2012 
Supply of gas to villages in 
NA-51, Tehsil Gujjar Khan, 
District Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
300.000 
Released 
19 
0848 
04.01.2012 
Provision of electricity to the 
villages 
of 
NA-51, 
Tehsil 
Gujar 
Khan, 
District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
50.000 
Released 
Const.P.No.20 of 2013 
4
 
20 
0953 
07.02.2013 
Supply of gas to Jungi Dam, 
Bains 
& 
Popur 
Khurd 
(enroute 
villages 
of 
operational line) in Tehsil 
Gujar 
Khan, 
District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
7.736 
Released 
21 
1039 
15.03.2013 
Additional 
amount 
for 
completion of on-going gas 
schemes in NA-51, Tehsil 
Gujar 
Khan, 
District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
300.000 
Released 
22 
1040 
15.03.2013 
Provision of electricity to the 
villages 
of 
NA-51, 
Tehsil 
Gujar 
Khan, 
District 
Rawalpindi. 
Raja 
Pervaiz 
Ashraf, 
MNA, 
NA-51, 
District 
Rawalpindi. 
40.000 
Released 
Total: Rs.1459.999 
 
 
In this manner, the above mentioned amount has been 
allocated for the constituency which he represents himself.  
3. 
  
Similarly, there are so many other Parliamentarians 
as well as the Members of the Provincial Assembly of the 
Punjab and “Notables” not representing any constituency who 
were obliged by granting funds for the purpose of inter alia the 
following development schemes:- 
S.No. 
Dir 
No. 
Issue date 
Subject 
Beneficiary 
Amount 
Approved 
Released / 
stuck Up 
185 
0377 
12.09.2012 
Provision of gas to villages & 
adjoining abadies in District 
Rawalpindi. 
Mr. Muhammad 
Basharat 
Raja, 
MPA, PP-05. 
71.000 
Released 
186 
0378 
12.09.2012 
Execution 
of 
misc. 
development 
schemes 
in 
District Rawalpindi. 
Mr. Muhammad 
Basharat 
Raja, 
MPA, PP-05. 
19.000 
Released 
187 
0149 
31.08.2012 
Execution 
of 
development 
schemes 
(roads/pcc/drains) 
in PP-110, District Gujrat. 
Mr. Moonis Elahi, 
MPA, 
PP-110, 
District Gujrat. 
250.000 
Released 
188 
0150 
31.08.2012 
Execution 
of 
development 
schemes 
(roads/pcc/drains/ 
saim nala) and soling) in PP-
118, 
District 
Mandi 
Bahauddin. 
Mr. Moonis Elahi, 
MPA, 
PP-110, 
District Gujrat. 
250.000 
Released 
Total: Rs.590.000 
 
 
And 
the 
“Notables” 
who 
perhaps 
are 
not 
elected 
representatives, as the number of their constituency is not 
mentioned against their names include the following:-  
S.No. 
Dir 
No. 
Issue date 
Subject 
Beneficiary 
Amount 
Approved 
Released / 
stuck Up 
208 
0567 
12.10.2012 
Electrification 
schemes 
in 
NA-19, District Haripur. 
Sardar Mushtaq 
Ahmed 
77.245 
Released 
209 
0567 
12.10.2012 
Electrification 
schemes 
in 
NA-19, District Haripur. 
Sardar Mushtaq 
Ahmed 
50.000 
Released 
210 
0568 
12.10.2012 
Execution 
of 
misc. 
development schemes in NA-
19, District Haripur. 
Sardar Mushtaq 
Ahmed 
16.025 
Released 
211 
0569 
12.10.2012 
Provision of gas to two (02) 
villages of NA-19, District 
Haripur. 
Sardar Mushtaq 
Ahmed 
6.730 
Released 
213 
0945 
31.01.2013 
Village 
electrification 
schemes in District Haripur. 
Sardar Mushtaq 
Ahmed 
85.000 
Released 
Total: Rs.235.000 
 
Const.P.No.20 of 2013 
5
 
S.No. 
Dir 
No. 
Issue date 
Subject 
Beneficiary 
Amount 
Approved 
Released / 
stuck Up 
214 
0857 
08.01.2013 
Village 
electrification 
schemes 
in 
District 
Killa 
Abdullah, Balochistan. 
Mr. 
Mehmood 
Khan 
Achakzai, 
Chairman, 
PKMAP. 
100.000 
Released 
215 
0845 
04.01.2012 
Supply of gas to village 
Inayatullah 
Khan 
karez, 
Tehsil Gulistan, District Killa 
Abdullah, Balochistan. 
Mr. 
Mahmood 
Khan 
Achakzai, 
Ex-MNA, District 
Killa Abdullah. 
23.000 
Released 
Total: Rs.123.000 
 
 
4. 
 
It is informed by the Additional Secretary, Finance 
Division that a further sum of Rs.25 billion were allowed to be 
expended over and above the budgetary allocation of Rs.22 
billion. Out of Rs.25 billion, Rs.15 billion are diverted funds 
from the PSDP originally allocated for Diamer Basha Dam, 
High Education Commission, Lowari Tunnel, FATA and Saving 
Schemes etc, (emphasis provided), whereas Rs.10 billion are 
three supplementary grants (Rs.5 + Rs.3 + Rs.2 billion), 
sanctioned by the Finance Division. The Secretary, Cabinet 
Division further stated that Rs.42.486 billion have already 
been released whereas balance amount of about Rs.4.5 billion 
is still available with the Cabinet Division. She informed that 
there were certain sanctions were made by the former Prime 
Minister on completion of the tenure of the Government but 
she declined and they were not processed.  
5. 
 
It may be noted that in pursuance of an article 
published in the daily news “Al-Akhbar”, Islamabad, dated 
25.03.2013, under the caption ﯽﻟﺪﻧﺎھد لﻮﭘ یﺮﭘ ﯽﮐ ﺖﻣﻮﮑﺣ ﯽﻟاو ﮯﻧﻮھ شوﺪﮑﺒﺳ 
 an application was registered as HRC No.11504-G/2013, and 
the Secretary Planning and Development Division has filed 
comments by offering the following explanations:- 
Const.P.No.20 of 2013 
6
“Sub: REPORT 
IN 
HRC 
NO.11504-G/2013-
APPLICATION: 
THE 
DAILY 
NEWS 
AL-
AKHBAR, 
DATED 
25TH 
MARCH, 
2013, 
ISLAMABAD (REGARDING CORRUPTION OF 
EX-GOVERNMENT 
 
 
 
The daily Al-Akhbar has reported in the 
editorial of its publication of 25th March, 2013 that 
the former Government in its last days has diverted 
Rs.5 billion from important projects for the schemes 
of Members of National Assembly and powerful 
Ministers 
to 
facilitate 
their 
success 
in 
the 
forthcoming elections.  The paper has reported that 
funds have been diverted from Diamer Basha Dam, 
Higher Education Commission, Lowari Tunnel, FATA, 
Saving Schemes along with other important projects 
and a total of Rs.43 billion have been provided to 
them (Annex-I) 
 
2. 
While the contents of the newspaper clipping 
are 
not 
specific, 
these 
appear 
to allude 
to 
allocations made for schemes under the Peoples 
Works Programme-II.  Allocation for Peoples Works 
Programme-II (PWP-II) is kept in Public Sector 
Development 
Programme 
(PSDP) 
as 
a 
block 
provision in the Demand of Cabinet Division.  Funds 
from the block provision are released by the Cabinet 
Division on the directives of the Prime Minister 
issued by the Prime Minister’s Secretariat to the 
executing 
agencies 
for 
implementation 
of 
schemes/projects directly without involvement of 
Planning and Development Division.  An allocation 
of Rs.22 billion was kept for PWP-II in the PSDP 
2012-13. 
 
3. 
On a request from the Prime Minister’s 
Secretariat, a summary was moved by the Finance 
Division on 11th October, 2012, proposing provision 
of additional funds of Rs.10.00 billion for PWP-II 
during fiscal year 2012-13.  The proposal was 
approved by the then Prime Minister.  Pursuant to 
the approval of the Prime Minister, Finance Division 
advised Planning and Development Division on 15th 
October, 2012 for making necessary adjustments 
within the allocations of PSDP 2012-13 while 
ensuring that the overall size of PSDP does not 
increase beyond its existing size as a result of this 
supplementary grant (Annex-II).  Consequently, the 
Planning 
and 
Development 
Division 
issued 
adjustments letters on 6th November, 2012 and 23rd 
November, 2012 to allocate Rs.5 billion each (Rs.10 
billion) by diverting funds from other PSDP projects, 
with the approval of the then Finance Minister 
(Annex-III, IV). 
 
4. 
The above adjustments included diversion 
from allocations to Diamer Basha Dam, Lowari 
Tunnel, FATA & Higher Education Commission.  
However, on the request of Governor, Khyber 
Const.P.No.20 of 2013 
7
Pakhtunkhwa, the amount of Rs.4 billion was 
subsequently recouped to FATA by reducing the 
equivalent allocation of other PSDP projects on 27th 
December, 2012 (Annex-V). 
 
5. 
The Finance Division, after having been 
conveyed verbal directions for approval of additional 
allocation of Rs.10 billion by the then Prime 
Minister, moved a summary on 24th December, 
2012 proposing another supplementary grant of 
Rs.10 billion for PWP-II through internal adjustment 
in 
the 
PSDP 
2012-13 
by 
the 
Planning 
and 
Development Division, which was approved by the 
then Prime Minister.  Planning and Development 
Division carried out an exercise and adjusted Rs.5 
billion only instead of Rs.10 billion, by reducing the 
allocations of other PSDP projects with the approval 
of the then Finance Minister (Annex-VI).  As such a 
total Rs.15 billion was allocated to PWP-II through 
adjustments during the fiscal year 2012-13. 
 
6. 
In addition to above internal adjustments in 
the PSDP 2012-13, Finance Division has also 
approved an additional allocation of Rs.10 billion for 
PWP-II through supplementary grant, over and 
above the existing size of the PSDP 2012-13. 
Resultantly, allocation for PWP-II increased from 
Rs.22 billion to Rs.47 billion.” 
 
6. 
 
It is interesting to note that along with the report, 
an Office Memorandum of the Government of Pakistan, 
Planning Commission, Planning and Development Division, 
dated 
06.11.2012 
is 
appended, 
under 
the 
subject 
“SUPPLEMENTARY GRANT FOR PEOPLES WORKS PROGRAMME-
II (PWP-II) WITHIN THE EXISTING SIZE OF PSDP 2012-13”. It 
finds mention in the letter that the Federal Minister for 
Finance, Revenue and Planning & Development has been 
pleased to accord approval for the provision of additional funds 
of Rs.5.0 billion through adjustment in PSDP 2012-13, 
proposed by the Planning & Development Division, to divert it 
to PWP-II. The approved funds would be surrendered by the 
concerned Ministries/Divisions in favour of Cabinet Division for 
Const.P.No.20 of 2013 
8
PWP-II. This document is available on the file of HRC 
No.11504-G of 2013 as Annexure-II, which is hereby directed 
to be clubbed with the instant case. For convenience, the 
names of the Ministries/Divisions, who were directed to divert 
the funds in favour of the Cabinet Division for PWP-II, are 
noted herein below:- 
 
i. 
States and Frontier Regions Division; 
 
ii. 
Capital Administration and Development Division; 
 
iii. 
Communication Division; 
 
iv. 
Education & Training Division; 
 
v. 
Finance Division; 
 
vi. 
Higher Education Commission; 
 
vii. 
Interior Division; 
 
viii. Ministry of Narcotics Control; 
 
ix. 
Railways Division; and 
 
x. 
Water & Power Division (Water Sector) 
 
7. 
 
It is true that there were savings as the 
Ministry/Division indicated in the above Memorandum but the 
question arises that instead of spending these amounts on any 
other Public Development Programme, the same have been 
diverted in favour of the Cabinet Division for PWP-II for the 
purpose 
of 
allocating/distributing 
these 
funds 
to 
the 
Parliamentarians and the “Notables” knowing fully well that 
budgetary allocations of Rs.22 billion under this Head has 
already been exhausted, therefore, prima facie inference could 
only be drawn that the object and the purpose was the same 
as has been captioned in the news item of daily “Al-Akhbar” 
noted herein above, particularly, knowing well that there is no 
monitoring system in stricto senso to ensure the expenditure 
of PWP-II funds in a transparent manner. It is also to be noted 
Const.P.No.20 of 2013 
9
that under the New System of Financial Control and Budgeting 
in 
order 
to 
maintain 
the 
financial 
disciplines, 
certain 
instructions were issued from time to time to be followed 
including with regard to the power of sanctioning projects, etc.  
8. 
 
We have also issued notice to the Secretary Finance 
for the purpose of answering the questions, which have been 
framed in the order dated 16.04.2013, and are reproduced 
herein below:- 
 
i. 
As to whether the funds belonging to public 
exchequer have been allocated/distributed to 
MNAs/MPAs/ Notables in accordance with the 
Constitution and the law? 
 
 
ii. 
What is the phenomenon or procedure to 
monitor the spending of amount and as to whether 
the details of such developments are available? 
 
 
iii. 
Whether the contracts were granted to the 
contractors by following the PPRA Rules? 
 
No reply has been filed except contending that in HRC 
No.11504-G of 2013, reply was filed. The Finance Division is 
directed to file the reply of the above forthwith. 
9. 
 
After having taken into consideration the above-
noted facts along with the viewpoint put forward by the 
Secretary, Cabinet Division, it is necessary to issue notice to 
the Special Secretary to the Prime Minister to submit SOPs, 
TORs or any instructions on the basis of which the Prime 
Minster is persuaded to allocate funds from PWP-II and as to 
whether there is any system in place for subjecting the 
schemes to technical scrutiny before allocating funds or it is 
left for the Prime Minster to exercise his discretion, without 
Const.P.No.20 of 2013 
10 
adhering to the Rules of Business and without sanction of the 
Cabinet, the Prime Minister alone enjoys unfettered powers to 
make allocations from the programmes on the request of the 
public representatives, including the Members of the Provincial 
Assemblies and the “Notables” and if it is so what is the 
justification available with the Special Secretary or the Prime 
Minister to accommodate any person being a representative or 
otherwise, etc.  
10.   
The Accountant General Pakistan Revenues, is 
hereby directed to put up the details in respect of each 
development scheme, which finds mention in the list appended 
with letter dated 15.04.2013, copy of which shall also be 
supplied to the AGPR along with the names of the Executing 
Agency to whom the amounts have been allocated for 
spending for the execution of the schemes. Similarly, each of 
the Executing Agency in whose favour the cheques were 
issued, shall submit reply through the AGPR about feasibility 
of the scheme and also to disclose as to whether the PPRA 
Rules were followed in order to ensure transparency in the 
execution of the schemes and to what extent schemes have 
been executed alongwith details of funds so far utilized for 
each scheme separately. 
11.  
Apparently, it seems that funds were diverted from 
the most important projects, like Diamer Basha Dam, Higher 
Education Commission, Lowari Tunnel, FATA, Saving Schemes 
Const.P.No.20 of 2013 
11 
etc noted herein above to the tune of Rs.22 billion, which in 
fact should not have been so done because of the importance 
of those projects, which undoubtedly have national importance 
and if are completed, the same being in the interest of the 
economic development of the country, ultimate benefit will 
pass on to the whole Nation. The manner in which the Finance 
Division and the Planning & Development Division had diverted 
these funds to the Cabinet Division to increase the budgetary 
allocation to PWP-II from Rs.22 billion also seems to be non-
transparent because in such like situation, when an amount 
has already been spent for the purpose, the preference should 
have been given for completion of the projects of national 
importance, instead of allocating this budget for execution of 
small schemes, which are meant only for the benefit of 
individuals and not for the whole Nation.  
12.  
In view of the above, we direct the AGPR to ensure 
that pending decision of the instant petition the funds which 
have already been released to the Executing Agencies, 
including for the schemes enumerated in the list appended 
with the letter dated 15.04.2013 referred to herein above are 
not further distributed and the payments in respect of the 
schemes, details of which have been furnished by the Prime 
Minister’s Secretariat shall be stopped immediately and a 
compliance report shall be sent to the Registrar of this Court 
by the AGPR for our perusal in Chamber within a period of 
Const.P.No.20 of 2013 
12 
three days, after receipt of this Order. Similarly, the Executing 
Agencies to whom the work has been assigned or the process 
of assigning of work is yet to be completed shall not proceed 
further with these schemes, till further orders passed by this 
Court. 
Similarly, 
notice 
to 
the 
Secretary, 
Planning 
& 
Development Division, Government of Pakistan, be issued for 
filing reply of the facts and consideration which have already 
been noted in the order dated 16.04.2013 as well as in the 
instant order. Notice to the learned Attorney General for 
Pakistan be also issued for the next date.  
13.  
Let this case be fixed on 30.04.2013. 
 
 
 
 
 
CJ. 
 
 
 
 
 
Islamabad 
J. 
 
19.04.2013 
*Hashmi* 
J.