Not much attention is currently on campaign finance although the elections are just about a week and a half away. This might appear strange given that for nearly the entire term of the legislatures elected in the last general elections, the Election Commission of Pakistan was looking into serious allegations that at one stage had looked like resulting in adverse rulings and potential sanctions against at least one major party. One possible explanation for the fact might be that controversies of a more ‘political’ nature have hogged the limelight.

It can be argued, particularly in view of the 2013 and 2018 campaigns, that campaign spending is a major factor in the electoral outcomes. Election laws in Pakistan have long prescribed spending limits and all successful candidates are required to submit an account of their expenditure, failing which the ECP does not notify their success. Regulation of campaign finance is seen as a critical element in ensuring that an election is free and fair. Some analysts have contended that the Election Act, 2017, does not clearly define the election expenses and establish legal consequences for a person funding a candidate’s election campaign. Moreover, while there is a limit on spending by the candidate, there is no ceiling for the parties. Some acknowledge the improvement as a result of successive reforms but also stress that improvements in scrutiny and regulation of campaign expenses should continue.

The code of conduct related to campaign funding provides that “a political party shall furnish to the Election Commission of Pakistan the list of contributors who have donated or contributed an amount equal to or more than one million rupees to the political party for its election campaign expenses.” It also directs the political parties to furnish to the ECP details of the election expenses incurred by it during a general election as well as other elections (by-election and Senate election). Moreover, as per Section 133 of the Elections Act, 2017, for the purpose of election expenses, all candidates are required to open an account with a scheduled bank. Alternatively, they can dedicate an existing bank account by submitting a statement to the returning officer at the time of filing of nomination papers. All donations and subscriptions have to be deposited in the account used for the purpose of election expenses. The election expenses of a candidate include the expenses incurred by any person or a political party on behalf of the candidate or incurred by a political party specifically for the candidate. The returned candidate is required to submit a return of election expenses to the RO within ten days of the polling in accordance with the prescribed law.

Friedrich-Ebert-Stiftung said the ECP lacked capacity to scrutinise the statements of accounts submitted by candidates, legislators and political parties in a timely manner. “All of this, put together, provides for a nearly open field for interest groups to influence politics,” it said.

A limit on election expenses was first set in 1962. It was Rs 2,000 for candidates for a National Assembly seat and Rs1,000 for a Provincial Assembly seat. In 2002, the election expenses ceilings were revised to Rs 1,500,000 for National Assembly and Rs 1,000,000 for Provincial Assembly. These have not been revised since then.

Ahmed Bilal Mehboob of the Pakistan Institute of Legislative Development and Transparency, says submission of the campaign funds details was seen as a mere formality till the last general elections. However, the ECP has now strengthened its scrutiny of political finance and set up a dedicated Political Finance wing that is computerised, digitalised and integrated with other such as the Federal Board of Revenue. He recalls that during the hearing of Hanif Abbasi case, the Supreme Court of Pakistan had directed the ECP to scrutinise its political finance section.

In recent times, the foreign funding case against Pakistan Tehreek-i-Insaf has been scrutinised by the Political Finance wing. The wing has staff, equipment and demonstrated capacity to deal with such matters, he says.

Some experts say legislation on political finance needs further strengthening to make elections easier for all contestants. However, Mehboob does not rule out misuse of a more stringent legislation or the Political Finance wing of the ECP.

A recent report by Friedrich-Ebert-Stiftung Pakistan, a German non-government organisation working on political rights and democracy around the world including Pakistan, pointed out certain regulatory weaknesses (e.g. no bar on seeking funds from corporate entities and no ceiling on spending for a political party during an election campaign); and ineffective enforcement mechanisms. The report, titled Political Finance and Public Funding of Political Parties in Pakistan – Challenges and Opportunities, said the ECP lacked capacity to scrutinise the statements of accounts submitted by candidates, legislators and political parties in a timely manner. “All of this, put together, provides for a nearly open field for interest groups to influence politics,” it said.

The writer is a staff member. He can be reached at vaqargillani@gmail.com