The government cannot use privatisation proceeds for financing fiscal deficit, as law requires utilisation of 90 percent of mobilised resources on debt retirement and 10 per cent on poverty alleviation. Chairman Privatisation Commission Muhammad Zubair, who agreed to the proposed amendment in the privatisation law regarding the post-audit of each transaction, stated that "we must meet the requirements of law whether some one likes it or not".
He further stated that government is not selling assets to achieve fiscal deficit targets but wants that the people must get improved services form organisations such as Pakistan International Airlines (PIA). He said that the Allied Bank Limited (ABL) transaction was completed in a record time of 19 working days. He further stated that he was not suggesting even for a moment that national interests should not be kept in mind during privatisation process "but the problem is who would define the national interests." The term national interest is vague and may vary from person to person. The sub-committee of the Senate Standing Committee on Finance discussed in detail the amendments proposed by senator Sughra Imam in the Privatisation Commission Ordinance 2000 to ensure that "all privatised assets, shares and enterprises are not further sold to another bidder without prior approval of the federal government and its concerned agencies".
Zubair said that a privatisation transaction in relation to national security may be perfect to him but may not be considered fit by someone else. He said that as per the privatisation law, 90 percent of the total proceeds generated through sell-off of an entity would be utilised for debt servicing and 10 percent towards poverty alleviation. The government has so far retired $4.1 billion to the International Monetary Fund (IMF) with a major portion of principal amount, said Zubair adding that the repayment of 2008 Stand-By Arrangement (SBA) was stopped in 2010 and the present government has decided to repay the Fund by taking another facility. The meeting of the sub-committee chaired by Senator Talha Mehmood after a detailed discussion decided to hold another meeting so that the input of Senator Usman Saifullah on the proposed amendments can be solicited. Senator Usman could not attend the meeting due to the demise of his grandmother. Statement of objects and reasons of the bill referred by Senate to the Senate Standing Committee states that the privatisation process in Pakistan must be entirely transparent and conducted in a manner that will protect Pakistan''s economic and strategic interests, both in short and long-term. The bill further states that Pakistan''s strategic assets and national security interests must also be safeguarded and secured during the process.
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