The Lahore High Court (LHC) has delivered a significant judgment, declaring that courts cannot function as regulators, auditors, or economic experts in matters concerning economic and regulatory policy. The ruling came in response to a constitutional petition that challenged capacity charges and electricity tariffs. Justice Ahmad Nadeem Arshad, in a detailed six-page judgment, emphasized that the judiciary is not an appellate forum for reviewing economic, financial, or regulatory policies solely based on a citizen's disagreement.
Court's Observations on Policy Matters
The court observed that issues related to capacity charges and electricity tariff structures fall within the domain of policymakers and relevant regulatory bodies. It stated that energy-sector policymaking is the responsibility of the government and Parliament, not the judiciary. The judgment highlighted the constitutional principle of separation of powers, urging courts to exercise restraint in matters that belong to the executive and legislative spheres.
Petitioner's Arguments Dismissed
The court noted that the petitioner failed to establish any violation of fundamental rights. It also ruled that directing the recovery of payments made to Independent Power Producers (IPPs) does not fall within its constitutional jurisdiction. The judgment reiterated that policymaking cannot be pursued through public interest litigation. The petitioner had sought the striking down of capacity charges and electricity tariffs, along with a comprehensive review of the country's power sector regulatory framework. However, the court dismissed the petition as non-maintainable.
This ruling reinforces the boundaries of judicial intervention in economic and regulatory affairs, underscoring the importance of the separation of powers in Pakistan's constitutional framework.
