The cabinet has decided to dismiss the proposal of issuing binding instructions for the commercial deals coming under the realm of “Inter-Governmental Commercial Transactions Act 2022”.
Express Tribune has reported that the cabinet members were not satisfied with clause 5 of the act, which empowers the federal government to issue instructions to provincial or local governments for the implementation of intergovernmental commercial transactions.
The cabinet members were of the view that clause 5 was against the true spirit of the 18th amendment and open to abuse.
The cabinet members also agreed on placing a bar on jurisdictions of the court on foreign investment under clause 8 of the proposed act. Clause 8 is aimed at giving judicial immunity to foreign investors.
Some cabinet members expressed dissatisfaction with the clause, as they felt that even the clause could not bar the judiciary from taking action when required. However, Federal Minister for Law and Justice, Azam Nazeer Tarrar, explained that this clause was present in several other laws as well, as it prevents frivolous litigation.
The cabinet agreed to take up the contents of clause 8 in National Assembly Standing Committee to re-evaluate the clause.