The Economic Reform Unit (ERU) of the Finance Division has strongly recommended a reconstituted autonomous board with appropriate private sector participation for Public Procurement Regulatory Authority (PPRA). It is learnt on Tuesday that the ERU of the Finance Division has drafted the National Governance Plan (NGP) for different government organisations, ministries/ divisions and regulatory bodies.
According to the draft of the NGP, it has been recommended that the Parliament or its committees should ratify the names of the chief executives of regulatory bodies such as Securities and Exchange Commission of Pakistan (SECP), Oil & Gas Regulatory Authority (Ogra), Pakistan Electronic Media Regulatory Authority (Pemra), National Electric Power Regulatory Authority (Nepra), Public Procurement Regulatory Authority (PPRA), Pakistan Telecommunication Authority (PTA).
The ERU observed that the development of independent regulatory institutions, who performs some of the functions earlier performed by the government calls for sound functioning of regulatory institutions. "We are confronting the need for regulatory refinements which are quite subtle and complex to assess", ERU observed.
It is recommended that Public Procurement Regulatory Authority should have a reconstituted autonomous board with appropriate private sector participation, and an effective CEO, authorised to develop their own code of conduct and a strong management system. PPRA may be empowered to make a direct representation to PAC for any wrongdoing discovered by them and may take action if they find that rules have been violated. The Cabinet Division may be asked to present a comprehensive plan in this regard within two months.
The Economic Reform Unit further recommended that independent Boards may be appointed in all the regulatory organisations. An annual undertaking from the Board members should be sought to ensure that there is no conflict of interest. A code of conduct for the Boards may be developed and implemented. Boards may recommend three candidates for appointment as CEOs to the PM for final approval. Appointment of CEOs of regulatory bodies may be ratified by the joint sub-committees of the Parliament.
The following regulatory bodies may be considered: SECP, Ogra, Pemra, National Electric Power Regulatory Authority (Nepra), Public Procurement Regulatory Authority (PPRA), Pakistan Telecommunication Authority (PTA). The ERU further recommended that the appointment of heads of regulatory authorities should be ratified by the parliament and they should report to their Board of Directors and be accountable to the PAC. They should be given autonomy in financial and functional matters.
The following restructuring initiates are being suggested to become part of a more gradual process: Under the Compensation System of Regulatory Authorities, a uniform compensation system is recommended to be introduced for all regulatory authorities. Establishment Division may present a plan in this regard within three months.