NAB Considers Inflation-Based Method to Prevent Closure of Corruption Cases

The National Accountability Bureau (NAB) is considering a new legal interpretation that could prevent a large number of corruption cases from being closed following an increase in the bureau’s financial jurisdiction threshold.

According to reports, NAB is preparing a proposal that may soon be presented before its Executive Board Meeting (EBM) for a policy decision.

The proposal aims to address concerns that many ongoing inquiries, investigations, and references could fall outside NAB’s jurisdiction after the minimum financial threshold increased from Rs. 500 million to around Rs. 800 million due to inflation-linked adjustments.

Under the proposal, NAB would apply the same inflation formula used to increase the financial threshold to the alleged amount of financial loss caused by corruption. This means the current value of the allegedly embezzled or misappropriated amount would be recalculated using inflation, rather than relying on its original value at the time of the alleged offense.

If the revised value exceeds the new Rs. 800 million threshold, the case could remain within NAB’s jurisdiction even if the original amount was below the updated limit.

The proposal is based on the principle that inflation-linked amendments should not benefit only the accused. They argue that the financial loss suffered by an individual, a government institution, or the national treasury should also be adjusted for inflation to reflect its present day value.

The increase in NAB’s financial threshold stems from amendments to the National Accountability Ordinance, which linked the Rs. 500 million threshold to inflation indices published by the Pakistan Bureau of Statistics from July 1, 2022. NAB officials estimate that the threshold has now increased to approximately Rs. 800 million.

Legal experts say the proposed interpretation could face judicial scrutiny if challenged, as the courts would ultimately decide whether the inflation adjustment applies only to NAB’s financial threshold or can also be used to recalculate the value of alleged losses in corruption cases.

Sources said no final decision has been made, and the proposal remains under consideration by NAB’s senior leadership.