NA panel approves amendments to Ord: PC to run business without prior approval from Cabinet Division

A parliamentary panel Thursday approved amendments to the Privatisation Commission Ordinance 2002, which will allow the commission to run its business without prior approval from the Cabinet Division.

The Supreme Court of Pakistan in Mustafa Impex case 2016 defines, "federal government" as "the collective entity described as the cabinet constituting the prime minister and federal ministers".

The Privatisation Commission proposed amendments to the PC Ordinance 2002, and replaced the word "federal government" with prime minister of Pakistan in the guidelines followed by Ministry of Law. The Standing Committee on Privatization approved proposed changes in the PC Ordinance on Thursday.

The Standing Committee on Privatization of the National Assembly considered few amendments to the Privatization Commission Ordinance 2000, these amendments are necessary for swiftly pursuing active privatization plan.

The proposed amendments empowered the prime minister to appoint chairman, secretary or any board member.

The prime minister may appoint special medical board regarding health of the chairman, secretary or any board member of the PC and, lastly the Privatization Commission may be able to open accounts in any high credit rating banks.

In the meeting, it was suggested that due to the urgency of work the PC should be allowed to open its account(s) in any of the high credit rating banks, identified by the State Bank of Pakistan.

The proposed amendments will facilitate the Privatization Commission to swiftly meet the deadline and eschew unnecessary delay.

The Standing Committee on Privatization approved the subject amendments, and these will go forth for approval from the National Assembly.

Mohammedmian Soomro, federal minister for privatization, has articulated and ensured the realization of prime minister's economic reforms in a transparent manner.

He said that privatization of public sector entities was to be undertaken in strict compliance of the PC Ordinance 2000, the PPRA rules and court decisions, considering the regulatory and due diligence processes involved.

The gestation period for an entity to be privatized ranges from a year to one and a half year.

All stakeholders and senior officials from the PIA, the Aviation Division, Ministry of Privatization and members from the PIA subsidiary investment company to be present in the next meeting of the National Assembly Standing Committee will brief and discuss the status of Roosevelt Hotel in detail.

Cabinet Committee on Privatization (CCoP) in its meeting on November 15, 2019 had approved the formulation of the task force for business plan of the Roosevelt Hotel and also formulation of terms of reference (ToRs) to that effect, and the same was ratified by the federal cabinet on December 3, 2019.

However, further work on this task is halted due to the absence of the CEO of PIA and pending litigation.

Minister Privatization Mohammedmian Soomro also said that the final bidding for two RLNG power plants will be held in April.

He further said that 18 PSEs will be privatized and financial advisors (FAs) for 16 of those are already hired or in final stages.

For the revival of Pakistan Steel Mills (PSM), Soomro informed that financial advisors will be appointed soon.

He said that it was a welcoming sign that various investment parties from China, Japan and Russia had expressed their interest for JV mode revival of the PSM.

Chairman PC further said that PC was actively pursuing the privatization plan and "we are hopeful that by June this year at least five entities will be privatized."

The government has identified 18 entities from energy, banking, industrial and real estate sectors to be privatized on priority basis, fulfilling all legal requirements in the best interest of indigenous economy, the minister added.