ISLAMABAD - The Supreme Court of Pakistan has decided to invest the donated amount in Supreme Court of Pakistan and the Prime Minister of Pakistan Diamer-Bhasha and Mohmand Dam Fund in T-Bills of six months maturity.
The top court has also directed the State Bank of Pakistan (SBP) to submit a detailed note containing step-by-step procedural modalities for placement of Fund. The top court also hinted at making amendment to the modalities if deemed appropriate.
In July last year, the top court had observed that the donated amount shall be invested in profit-bearing scheme to maintain the value of collected money.
According to the website of Supreme Court, so far Rs10.41377 billion has been donated by the general public and others into the Dam Fund.
Treasury bill or T-Bill is a short-term maturity promissory note issued by the federal government through State Bank. It is considered to be a primary instrument for regulating money supply and raising funds via open market operations.
T-Bills commonly pays no explicit interest but are sold at a discount, their yield being the difference between the purchase price and the par-value, which is also called redemption value. The yield is closely watched by the financial markets and affects the yield on municipal and corporate bonds and bank interest rates.
A five-judge bench headed by Justice Sheikh Azmat Saeed had heard the case regarding Dam Fund.
Attorney General for Pakistan Anwar Mansoor Khan had given a presentation as to the various options available for investing the moneys that constitute the Dam Fund, till the release thereof as envisaged in the detailed judgment, which is not expected to be for some time.
The top court’s 5-page written order stated, “after reviewing the same, we direct that in the first instance let the moneys be invested in T-Bills of six month maturity.”
“In this regard the State Bank shall within seven days prepare a detailed note, containing step-by-step procedural modalities in relation to the placement of the Fund as above, for consideration by the Bench in Chambers,” the top court ruled.
It is further ruled that once the modalities have been approved with or without amendment, the Fund shall be placed as directed.
The Registrar of this Court or such other officer as may be designated from time to time shall be the officer-designate authorised to act for the court for the purpose of the aforesaid placement.
The State Bank shall likewise designate an officer not below the rank of Executive Director to ensure effective timely coordination, monitoring and implementation.
Regarding the attorney general’s allegations of propaganda against dams by certain TV channels, the top court ordered to submit the transcript of the TV programme. It is ruled that the transcript shall be examined by the bench before proceeding further in the matter.
According to the written order, the Chairman WAPDA has assured the bench that everything is moving on time and on the right track so far and they also have the requisite funding available and will be able to raise more funding as and when required.