The federal cabinet has directed the Ministry of Communications to examine other ways to regulate private courier services sector without the establishment of Authority, official sources told Business Recorder. The Communication Ministry, sources said, had argued that there were over 300 private courier service companies operating in the country without the approval of any authority. In order to regulate and check their mushroom growth, protect the public interest, financial/ operational viability of the courier companies before issuing licence, a Courier Services Regulatory Authority (CSRA) should be established.
The sources said one of the cabinet members opposed the move saying that as a policy, there should be an overwhelming justification before the creation of regulatory authorities. It was also felt that setting up of an authority with the government functionaries did not appear to be an appropriate course.
According to these sources, the cabinet discussed various clauses of the draft bill and reservations were expressed on section 4(2) involving conflict of interest as well as sections 3,5,7,13,15,16 and 22 of the draft bill.
Some of the cabinet members also argued that there was lack of clarity about the role of the regulatory and licensing authority in the proposed provisions.
The sources further said that some cabinet members were of the view that objectives of regulation could be met in this matter through appropriate legislation without the need of creating an authority.
The ministry had argued in the summary to provide a level playing field to all stakeholders in the business and ensure rational rates of various services provided by the private courier services and assess the financial and prescribe the manner in which complaints should be resolved.
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