The political landscape in Pakistan took a dramatic turn this week, as the Senate’s approval of the 27th Constitutional Amendment sent shockwaves through the country’s institutions and financial markets. The amendment, which proposes sweeping changes to the military command structure and the judiciary, has triggered fierce debate among lawmakers, legal experts, and civil society groups, while also rattling investor confidence and leading to one of the steepest declines in the Pakistan Stock Exchange (PSX) in recent memory.
On Monday evening, as reported by Al Jazeera, Pakistan’s Senate passed the 27th Amendment in a raucous session, with the opposition boycotting the proceedings. The legislation now moves to the National Assembly, where it requires a two-thirds majority before heading to President Asif Ali Zardari for final approval. The government’s rush to push through the amendment has drawn criticism for its lack of transparency and consultation, echoing concerns raised last year during the hurried passage of the 26th Amendment, according to The Times of India.
At the heart of the controversy are the amendment’s provisions, which, if enacted, would fundamentally reshape the balance of power between Pakistan’s civilian government, military, and judiciary. The most significant change involves Article 243 of the constitution, which currently defines the relationship between the civilian government and the armed forces. The amendment would create a new post—the Chief of Defence Forces (CDF)—to be held by the army chief, thereby consolidating authority over the army, air force, and navy. This change would also abolish the position of Chairman of the Joint Chiefs of Staff Committee (CJCSC), currently held by General Sahir Shamshad, who is set to retire at the end of November 2025.
Perhaps even more contentious is the amendment’s provision granting five-star officers lifetime immunity from criminal prosecution, allowing them to retain their rank, privileges, and uniforms for life. Field Marshal Asim Munir, the current army chief who was promoted to five-star rank in May 2025, would be only the second Pakistani military officer after Ayub Khan in the 1960s to hold such a position. The amendment also creates the post of Commander of the National Strategic Command (NSC), responsible for the country’s nuclear arsenal, to be appointed solely from the army in consultation with the army chief/CDF.
Legal experts and human rights advocates have voiced alarm at these changes. Rida Hosain, a constitutional lawyer based in Lahore, told Al Jazeera, “Democracy does not survive where impunity is made a constitutional right. It grants a nonelected army officer protections and powers that no democratically elected leader in the country has.” Reema Omer, legal adviser for the International Commission of Jurists, warned that the amendment would reduce the Supreme Court of Pakistan to a mere appellate court, stripping it of its ability to serve as a check on executive and military power. “The judiciary, at least in the short and medium term, will be largely beholden to the executive,” Omer said.
The judicial reforms proposed in the amendment are equally far-reaching. The draft seeks to establish a permanent Federal Constitutional Court (FCC), with judges drawn equally from each province and Islamabad, retiring at age 68 and led by a chief justice with a three-year term. The president would gain expanded powers to transfer judges between high courts without their consent, and refusal to accept a transfer could result in forced retirement after a review by the Judicial Commission of Pakistan. This, critics argue, undermines judicial independence and exposes judges to political pressure.
Senior members of the judiciary have not remained silent. Mansoor Ali Shah, the second most senior judge of the Supreme Court, wrote in an open letter to Chief Justice Yahya Afridi that the FCC does not represent genuine reform but rather a “political device to weaken and control the judiciary.” Shah warned, “History does not easily forgive such abdications of duty; it records them as constitutional failures of leadership and moments when silence within institutions weakened the very edifice they were meant to guard.”
Despite the chorus of criticism, the government has defended the amendment as necessary to address mounting governance challenges. In the official draft, the government argued that the surge in constitutional petitions before the Supreme Court has delayed the resolution of regular civil and criminal cases. Hafiz Ahsaan Ahmad Khokhar, an advocate of the Supreme Court, told Al Jazeera that a permanent FCC would ensure “focused expertise and timely adjudication,” while the CDF post would unify strategic command and improve coordination within the armed forces. “Both reforms are grounded in the realities of Pakistan’s governance challenges and increasing complexity of state functions,” Khokhar said. “These measures will help Pakistan evolve into a mature, rule-based democracy where judicial, civil and defence institutions perform their specialised roles in harmony.”
However, the Human Rights Commission of Pakistan (HRCP) questioned the haste and lack of consultation in tabling the amendment. In a public statement, the HRCP said, “The government’s haste, including the absence of any meaningful consultation with the political opposition, the wider legal fraternity and civil society, calls into question the very intention behind moving this amendment bill.”
The political uncertainty surrounding the amendment’s passage has not been confined to the halls of parliament. On November 12, 2025, the Pakistan Stock Exchange (PSX) suffered a staggering 3,668-point drop in the KSE-100 index, as reported by The Express Tribune. The sell-off was broad-based, hitting blue-chip stocks across sectors such as auto assemblers, cement, commercial banks, oil and gas, power generation, and refineries. The decline followed the Senate’s approval of the amendment and was exacerbated by reports of terrorist attacks in Islamabad and Khyber-Pakhtunkhwa, as well as fears of potential tension on the Indian border.
Trading volumes surged to 836.4 million shares, with a total traded value of Rs38.1 billion. Of the 484 companies traded, 364 saw their stock prices fall, while only 79 rose and 41 remained unchanged. Foreign investors, spooked by the political and security turmoil, were net sellers of shares worth Rs198 million. Ahmed Sheraz, an equities trader at KTrade Securities, remarked, “The sell-off was broad-based, with major sectors like banking, oil and gas, cement and fertiliser suffering notable losses. Market sentiment took a hit from terror incidents in Islamabad and Khyber-Pakhtunkhwa, leading to loss of human lives. Also, fears of potential tension on the Indian border sparked caution.”
The PSX’s sharp downturn is a stark reminder of how intertwined Pakistan’s political and security environments are with its economic fortunes. As Arif Habib Limited warned, the potential for increased tensions between Pakistan and India could mean further downside risks for the market in the days ahead.
As the National Assembly prepares to vote on the 27th Amendment, Pakistan stands at a crossroads. The country’s history is replete with periods of military dominance and democratic struggle, and the current moment has revived old debates about the balance of power, accountability, and the protection of civil liberties. Whether the amendment becomes law or not, its impact on Pakistan’s institutions—and its people’s faith in them—will be felt for years to come.
