The ruling elites of Pakistan -- militro-judicial-civil complex, businessmen-turned-politicians and absentee landowners sitting in parliaments -- are solely responsible for pushing the country into a terrible mess. Their lust to amass wealth coupled with ambitions to control all institutions has made Pakistan ‘a state-in-perpetual-crisis’. On the one hand, the country is trapped in a deadly debt and on the other fierce battles are being fought in courts by the ruling family for attaining monopolies in various businesses, most notably in sugar -- commonly called ‘white gold’ as it yields enormous profits.

In a recent case (JDW Sugar Mills Ltd etc. Versus Province of Punjab etc) decided by the Lahore High Court and widely reported and highlighted in the media, the specific allegation by certain sugar mills’ owners (petitioners) was that respondents (a number of sugar mills) were abusing the law to further their business interests.

According to details, Ittefaq Sugar Mills Limited was establishing a new sugar mills in Channi Got, District Bahawalpur, Haseeb Waqas Sugar Mills Limited in Mauza Jagmal, Tehsil Jatoi, District Muzaffargarh, Abdullah (Yousaf) Sugar Mills Limited in Tehsil Jampur, District Rajanpur, Abdullah Sugar Mills Limited in District Rahim Yar Khan and Chaudhry Sugar Mills Limited in District Rahim Yar Khan. In ordinary circumstances, there should have been appreciation for these sugar mills/companies to open new units in the backward areas of Punjab. However, there is more than what meets the eyes--the ruling family was allegedly violating the law and trying to monopolise the sugar business.

Para 6 of the judgement in Writ Petition No.37 of 2016 reads as under:

"One of the main arguments raised by the Petitioners was that Respondent sugar mills are owned by the Chief Minister, Punjab and the Prime Minister of Pakistan along with close family relatives. Hence the Impugned Notification has been issued to benefit their business interest. Further that the Impugned Notification has been issued simply to facilitate and legalize the establishment of new sugar mills owned by the families of the Chief Minister, Punjab as well as the Prime Minister given the ban on establishing sugar mills in the Province. In this regard, it is specifically alleged that Ittefaq Sugar Mills Limited and Chaudhary Sugar Mills Limited are owned by Mian Muhammad Nawaz Sharif, Hassan Nawaz Sharif, Hussain Nawaz Sharif, Mrs. Maryam Nawaz, Mrs. Kulsoom Nawaz and Hamza Shahbaz along with other family members. Haseeb Waqas Sugar Mills Limited is owned by Haseeb Ilyas, Zakia Ilyas, Mrs. Shahzadi Ilyas and other family members. Abdullah Sugar Mills Limited is owned by Mian Mohammad Ejaz Miraj, Yasmin Riaz and other family members."

It is pertinent to note that the order of High Court reveals that the sons of the prime minister, Hassan Nawaz Sharif and Hussain Nawaz Sharif, are still enjoying business interests in Pakistan [as owners of sugar mills] even though while explaining their position vis-à-vis offshore companies, the prime minister in his addresses and speech before the National Assembly categorically said that his sons had no business links in Pakistan. However, this case shows otherwise -- thus both of them were bound to file tax returns in Pakistan if were recipient of dividends. Tax directories published by Federal Board of Revenue (FBR) for tax year 2013, 2014 and 2015 do not mention the name of either Hassan Nawaz Sharif or Hussain Nawaz Sharif!

It is sad to note that our worthy finance minister is borrowing huge money at home and abroad, but the FBR working under him is not even aware of the fact that the sons of the prime minister having ownership in a sugar mill (may be in other businesses as well) are not discharging their tax obligations! As highlighted many times in these columns, the FBR is being used as a tool to harass political opponents and/or secure unprecedented tax breaks for amassing enormous assets and creating monopolies. This is now confirmed in JDW Sugar Mills Ltd etc. Versus Province of Punjab etc .

The basic grievance of the petitioners in all the cases was that the respondents under the garb of shifting/relocation of a functional sugar mill were in fact establishing a new sugar mill despite the ban imposed under the Punjab Industries (Control on Establishment and Enlargement) Ordinance, 1963 read with Notification No. AEA-III- 3-3/03 (VOL-III) dated 6.12.2006. The basic case of the respondent sugar mills was that they were not establishing "new sugar mills" nor were they "enlarging the sugar production capacity of their existing sugar mills". They were simply "relocating" their sugar mills from one area to another which was not "prohibited under the Ordinance or Notification dated 6.12.2006".

The Lahore High Court in its order [Para 33 & 34] has specifically noted:

Interestingly, the government of Punjab defended the ban on the establishment of sugar mills before the august Supreme Court in Civil Appeal Nos.1242 to 1245 of 2013 on the ground that new sugar mills should not be set up in cotton growing areas as it would encourage farmers to grow sugarcane in areas which would adversely affect the growth of cotton crop in those areas.

Clearly, the government of Punjab has taken an inconsistent and contradictory position before both the courts. In the august Supreme Court, while defending the ban on the establishment of sugar mills, the government of Punjab took the position that setting up new sugar mills in areas such as Rahim Yar Khan, Multan, Rajanpur and Bhakkar is detrimental to the cotton crop and that cultivation of sugarcane crop poses a threat to cotton growing areas. It was also stated before the Supreme Court that sugarcane is a water intensive crop and since ground water sources have depleted, increase in the sugarcane crop will worsen the situation. The position of the government was that the establishment of new sugar mills was not in the national interest.

However, before this court, the government of Punjab, while relying on the recommendations of the Cabinet Committee, has argued that while historically the growth of sugarcane in some areas posed a threat to cotton and wheat, today the climate and the environment conditions have changed and as such the cultivation of sugarcane in areas like Rahim Yar Khan, Multan, Rajanpur, Bhakkar would not be detrimental to cotton crop. They have also stated that the establishment of sugar mills in the aforementioned areas would not compromise or prejudice national interest.

The Lahore High Court in its judgement has held that "in the instant case, the position of the government of Punjab is clearly inconsistent with its earlier position before the august Supreme Court where the ban of 6.12.2006 was challenged". It observed that "the plea of the government of Punjab was relied upon and accepted by the august Supreme Court in its judgment dated 25.7.2016 [reported as PLD 2016 Supreme Court 778]. Therefore it cannot now adopt a contradictory position before this Court".  

There is a clear indictment in the judgement [Para 40] against the ruling family in the following words:

"In this case, the relocation policy has not benefitted or protected the national interest but is aimed to facilitate certain sugar mills, which happen to be owned by the families of the Chief Minister, Punjab and the Prime Minister of Pakistan."

In Para 42, there is a stricture for violation of law and rules:

"The matter does not end here. The government not only designed a policy to cater to a few sugar mills but it also failed to take action against the respondent sugar mills for establishing new sugar mills without any permission whatsoever required under the law. The respondent sugar mills have failed to comply with the requirements of the environmental laws of the province and have admittedly not taken the required permissions."

In the end in Para 45, the court has directed the government to take "necessary legal action against the respondent sugar mills pursuant to the show cause notices issued to the respondent sugar mills on account of their establishing new sugar mills without seeking the prior permission from the competent authority required under the law".

One really wonders whether Shahbaz Sharif will take action against himself, his family and elder brother and his family. Let us see what happens in the future when this judgement is challenged in Supreme Court. If it is confirmed by the Apex Court, its implementation under Article 201 will become mandatory for the Punjab government.

It is evident from the above judgement that the ruling family has only one agenda: self-aggrandisement. The concentration of power and wealth in their hands, coupled with lust for expansion of their business empire has given rise to perpetual confrontations within the state institutions. Some of the government officials and crony politicians are faithfully serving the ruling family by violating laws with complete impunity -- at the expense of national interest as elaborated in the judgement by Lahore High Court.