The Toshakhana (Management and Regulation) Act, 2024, marks a pivotal moment in Pakistan’s governance, introducing stringent measures to regulate the management of gifts received by public officials. For years, the Toshakhana, a government repository for such gifts, has been shrouded in controversy, with allegations of misuse and personal enrichment casting a long shadow over its operations. The new legislation aims to dispel these concerns and usher in an era of transparency and accountability.
Prior to the 2024 Act, the legal framework governing the Toshakhana was vague and open to interpretation. While the Toshakhana Ordinance of 1980 provided for the establishment of the repository, it lacked specific guidelines on the management and disposal of gifts. This ambiguity allowed for discretionary practices, often leading to allegations of favouritism and corruption. The absence of clear regulations also hindered public oversight, with limited information available about the gifts received and their fate.
The catalyst for amending the Toshakhana Act was the Toshakhana reference case against former Prime Minister Imran Khan, a landmark decision by the Election Commission of Pakistan (ECP) that resulted in his disqualification from public office for five years. Filed in August 2022 by members of the Pakistan Democratic Movement, the case accused Khan of failing to declare gifts received from foreign dignitaries in his annual asset declarations. The ECP’s inquiry, concluded on October 21, 2022, determined that Khan made false statements and inaccurate asset declarations for the year 2020-21. This led to his disqualification and the initiation of criminal proceedings.
Khan challenged the ECP’s verdict, claiming the gifts were legally obtained and the proceeds used for public investment. Despite his appeal, the Islamabad High Court temporarily halted criminal proceedings but eventually upheld the ECP’s decision. On August 5, 2023, Khan was convicted of corrupt practices and sentenced to three years in prison, though this conviction was suspended later that month. Further legal troubles arose in December 2023 when the National Accountability Bureau (NAB) filed a separate Toshakhana case against Khan and his wife, Bushra Bibi, for undervaluing a jewellery set received from the Saudi crown prince.
The legal battles continued, with Khan and his wife’s conviction in January 2024, sentencing them to 14 years in prison and a substantial fine. This sentence was suspended in April 2024, but the couple faced re-arrest in July 2024 on new charges related to the Toshakhana case, including the unauthorized sale of valuable items like Graff and Rolex watches, and diamond and gold jewellery. The ongoing legal saga underscores the intense political and legal scrutiny faced by Khan, with significant implications for his political future.
Central to the new Act is the mandatory deposit of all gifts received by public officials, including those in the armed forces and judiciary, into the Toshakhana within a prescribed timeframe. Section 3 of the Act states, “Gift received by a public office holder or private person as part of an official delegation shall be deposited in the Toshakhana of the Government of Pakistan in thirty days or within such time limit and manner as may be prescribed.” This removes the discretionary power previously enjoyed by officials, minimizing opportunities for personal gain. The Cabinet Division has been entrusted with the responsibility of managing and regulating the Toshakhana, ensuring centralized oversight and control. A significant step towards public accountability is the provision for public access to information about the Toshakhana, including details of gifts received and their disposal, subject to reasonable restrictions.
Perhaps the most impactful provision of the Act is the mandate for the auction of gifts. This not only prevents the accumulation of unwanted or impractical items but also generates revenue for a noble cause. The proceeds from these auctions will be dedicated to promoting female primary education in the most underdeveloped areas of the country, addressing a critical social and economic issue.
To deter non-compliance, the Act imposes strict penalties on government servants who violate its provisions. Section 5 of the Act states, “Whoever contravenes or attempts to contravene or abets in contravention of section 3 or any rules made thereunder shall be punishable with a fine equal to five times the assessed market value of the gift. In the case of a government servant, they will be liable to departmental proceedings also as per the respective laws/rules.” Departmental proceedings and potential legal action underscore the government’s determination to enforce the law and maintain its integrity. The implications for government officials are far-reaching. The reduced discretion in handling gifts, coupled with increased public scrutiny, necessitates a shift in mindset. While some may view the auctioning of gifts as a loss of potential personal benefit, it is essential to recognize that the greater good of transparency and accountability outweighs individual interests.
The Toshakhana Act is not merely a legislative change but a symbolic representation of Pakistan’s commitment to good governance. By establishing clear rules and regulations, the Act seeks to restore public trust in the system and ensure that gifts intended as tokens of goodwill serve the nation’s interests rather than those of individuals. While challenges may arise in the implementation of the Act, its overall impact is expected to be positive, fostering a culture of transparency and accountability that is essential for the country’s progress.
The Toshakhana (Management and Regulation) Act, 2024, represents a significant departure from the opaque practices that previously characterized the management of gifts received by public officials in Pakistan. By imposing stringent regulations, the Act has laid the groundwork for a more transparent, accountable, and equitable system. The mandatory deposit of gifts, centralized oversight, public access to information, and the innovative approach of auctioning gifts with proceeds dedicated to education are commendable steps towards good governance.
While the Act is a promising development, its successful implementation will depend on robust enforcement mechanisms and a sustained commitment to transparency. Challenges such as the valuation of gifts, prevention of undervaluation, and ensuring the effective utilization of auction proceeds will require careful attention. Moreover, the long-term impact of the Act on public perception of government officials and the overall ethical climate within the public service will be crucial factors to monitor.
Nevertheless, the Toshakhana Act stands as a beacon of hope, signalling Pakistan’s determination to address historical shortcomings and build a more just and accountable society. It is a testament to the nation’s evolving understanding of its obligations to its citizens and its commitment to upholding the principles of good governance. As the Act matures and its effects become more pronounced, it is expected to serve as a model for other countries grappling with similar challenges.
Farhad Durrani
The writer is an Advocate of the High Court.