The Supreme Court has issued notices to seven qualified bidders for the purchase of 51 percent shares of Pakistan State Oil Limited. A two-member bench of the Supreme Court comprising Justice Javed Iqbal and Justice Falak Sher issued these notices after hearing an appeal filed by Attock Group of Companies against their disqualification to participate in the on going PSO sell off process.
The court also clubbed a petition filed by Pir Fazal Shah Jilani, MNA and convenor of National Assembly Sub-committee, Petroleum and Natural Resources seeking cancellation of privatisation of PSO since it was strategic national asset which should not go in private hands.
Submitting his arguments, counsel for the Privatisation Commission Wasim Sajjad said that privatisation is a world-wide trend and all the previous governments wanted to privatise PSO.
He said that the PC has its own process to qualify or disqualify any prospective bidders for the purchase of the government owned entities, under which the Attock Group of Companies were not cleared to participate.
Justice Javed Iqbal observed that the privatisation should be in the national interest and added other countries are selling their sick units, but here in Pakistan the profit earning units are being sold. Wasim Sajjad submitted that the government is keeping the national interest supreme that is why it cancelled previous two bids.
Justice Falak Sher referred to the earlier privatisation of the government owned banks and inquired who were their beneficiaries Wasim Sajjad submitted it is a policy matter; the basic purpose is that the process should be transparent. Justice Falak Sher observed the privatisation should be in the interest of the state and it must be determined which of the units is privatised.
Wasim Sajjad argued that the privatisation policy has benefited the common man as call charges of mobile telephones have declined after privatisation of the telecommunication sector. Justice Javed Iqbal observed "It is correct but we should not make Pakistan a "consumer" state.
Justice Falak remarked the court is issuing notices to the parties for 12th July 2007, meanwhile PSO share price should appreciate for the benefit of the country. . Wasim Sajjad submitted that whatsoever record is required, PC will submit it on the next hearing.
Justice Javed Iqbal remarked, "in deciding these petitions, the court will try that government's privatisation programme is not affected.