IHC Upholds PIC Decision Declaring PMIC a Public Body Under RTI Act

The Islamabad High Court has upheld an order of the Pakistan Information Commission (PIC) declaring the Pakistan Microfinance Investment Company Limited (PMIC) a public body and subject to the Right of Access to Information Act, 2017.

The Commission, in pursuance of an appeal filed by a citizen, had held through its order dated January 16, 2025 that PMIC falls within the definition of a public body and is answerable under the Act. PMIC, instead of complying with the Commission’s earlier order dated September 10, 2024 directing it to furnish certain information, challenged the decision before the High Court under Article 199 of the Constitution of the Islamic Republic of Pakistan, 1973.

Justice Muhammad Asif heard the writ petition, in which PMIC sought to have the impugned order set aside on the grounds of misapplication of law and lack of jurisdiction.

The company argued that it is a private sector entity incorporated under the Companies Act, 2017, licensed and regulated by the Securities and Exchange Commission of Pakistan (SECP), and neither owned nor controlled by the Federal Government. It contended that it does not fall within the definition of a “public body” under Section 2(ix) of the Act.

PMIC submitted that Pakistan Poverty Alleviation Fund (PPAF) holds only 49 percent shareholding in the company, which does not amount to majority ownership or control. It maintained that majority shareholding rests with Karandaaz Pakistan and KfW, and that it neither receives public funding nor performs governmental or sovereign functions. The petitioner further argued that the requested information was commercially sensitive and confidential, and its disclosure would prejudice its commercial interests.

Counsel for respondent No. 2 opposed the petition, arguing that the Right of Access to Information Act is a beneficial statute aimed at promoting transparency and accountability. It was contended that the definition of “public body” under Section 2(ix) is broad and includes entities owned, controlled, or substantially funded by public bodies, as well as organizations undertaking public functions or receiving public funds.

The respondent maintained that PMIC is wholly owned by PPAF (49%), Karandaaz Pakistan (37.8%), and KfW (13.2%), all government-backed entities, and that substantial public funding is sufficient to attract the Act.

In its judgment, the Court examined the legislative intent of the Act, noting that it seeks to promote transparency, ensure access to records held by public bodies, and give effect to the fundamental right of access to information under Article 19A of the Constitution. The Court observed that Section 2(ix) defines “public body” in expansive terms and that ownership, controlling interest, or substantial funding independently suffices to bring an entity within its ambit.

The Court noted that PMIC’s shareholding vests entirely in PPAF, Karandaaz Pakistan, and KfW, and that more than 70 percent of its funding originates from public bodies and public funds. It also observed that the information sought related to the appointment and reappointment of Mr. Yasir Ashfaq as Chief Executive, a matter directly linked to governance and stewardship of financial resources.

The Court further observed that PMIC was conceived under the National Financial Inclusion Strategy issued by the Ministry of Finance and launched under governmental auspices, with objectives of financial inclusion, poverty alleviation, and economic empowerment.

Holding that the Commission acted within its lawful authority and that no jurisdictional defect, mala fide, or perversity had been demonstrated, the Court dismissed Writ Petition No. 3638 of 2024. The parties were left to bear their own costs.