Political Finance

By Masood Akhtar Shirwani

(Director General Political Finance, Election Commission of Pakistan)

Money has emerged as one of the most decisive factors in modern politics. While financial resources are essential for political organization and electoral campaigning, unchecked political finance can undermine democratic values, distort electoral competition, and erode public trust consequent. In Pakistan, the regulation of political finance primarily rests with the Election Commission of Pakistan (ECP), a constitutional body mandated to ensure free, fair and transparent elections.

The framework for regulating political finance in Pakistan is laid down in the Constitution of Pakistan, the Elections Act, 2017, and the Elections Rules, 2017. Together, these laws empower the ECP to oversee the financial conduct of parliamentarians, political parties, and election candidates, with the broader objective of promoting accountability and curbing the undue influence of money in politics.

One of the most visible aspects of political finance regulation in Pakistan is the mandatory declaration of assets and liabilities by parliamentarians. Members of the National Assembly, Senate, and Provincial Assemblies are required to annually submit statements of their assets and liabilities, including those of their spouses and dependent children, to the ECP which is a key feature of Pakistan’s political finance framework, aimed at preventing concealment of wealth through family members and strengthening financial transparency. The Election Commission of Pakistan receives, publishes, scrutinizes, and enforces asset declarations, with penalties such as suspension, public listing of defaulters, and possible disqualification for non-compliance.

The political parties are central to democratic governance, yet their finances have historically remained opaque with little or no accountability. To address this concern, the law requires every registered political party to submit consolidated annual accounts to the ECP. These accounts are required to be audited to inter alia certify that they have not received funds from prohibited sources, including foreign governments, foreign nationals, or anonymous donors. The ECP routinely initiates proceedings against parties that fail to submit their accounts, including parliamentary parties. While enforcement challenges persist, these requirements represent an important step toward institutionalizing financial transparency in party politics.

Another component of political finance is campaign finance regulation which is aimed at preventing wealth from becoming the primary determinant of electoral success. In Pakistan, the law restricts the sources from which political parties may receive funding and requires proper documentation of campaign-related income and expenditure. The ECP’s scrutiny of party funding, including cases involving
prohibited or undisclosed sources, has highlighted the growing importance of financial oversight in electoral politics. Such cases have also demonstrated the need for stronger compliance mechanisms and clearer legal consequences to deter violations.

At the individual level yet another significant aspect is focus on a candidate who is subject to strict limits on campaign spending. Candidates must maintain a separate bank account for election expenses and submit detailed statements of expenditure after elections. These rules are designed to discourage excessive spending, reduce vote-buying, and provide a level playing field for candidates from diverse economic backgrounds. Although monitoring candidate expenses remains a challenge due to underreporting and informal spending, the legal framework provides the ECP with tools to enforce accountability and penalize violations.

In recent years, the Election Commission of Pakistan (ECP) has taken giant strides in improving the transparency, accountability, and efficiency of political finance management. One of the most notable initiatives has been the adoption of an indigenously developed Political Finance Management Information System (PFMIS). This system, specifically designed for Pakistan’s political environment, has transformed the way political financing is monitored, recorded, and regulated by the ECP. Political Finance Wing integrated diverse legacy segments into an integrated unit capable of meeting present and future challenges covering the whole PF spectrum.

The PFMIS capture the data of all the working that is necessitated for prompt and timely provision of information i.e. from the conduct of intra party elections to timely submission of consolidated statement of Political Parties Accounts, Symbols allocation, Campaign Finance Accounts and recording of statement of Assets & Liabilities of members & Return of Election Expenses. In brief it provides a holistic view about the affairs that are being dealt/ covered under the Elections Act, 2017. PFMIS database is capable of generating data of yesteryears available in the files/Record has been captured in the system (PFMIS) enabling PF database to make comparison with present and future data. In this way, the PF record is now readily available in tabulated form which can be transposed and juxtaposed according to user needs. A world of information is available with a click of button.

The Political Finance Management Information System represents a major step toward strengthening democratic governance in Pakistan. By digitizing political finance oversight, the Election Commission of Pakistan has laid the foundation for transparency, accountability, and institutional credibility. With continuous improvement, technological advancement, and stakeholder cooperation, PFMIS has the potential to become a comprehensive and robust framework ensuring clean, fair, and transparent political financing — ultimately reinforcing public trust in Pakistan’s democratic system.