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Within the overall Government policy of strengthening the private sector’s role in the provision of goods and services and with the approval of Cabinet, the Privatisation Commission (PC) is entrusted with selling federal government property—such as its shares in banks, industrial units, public utilities, oil and gas companies, transport companies, and infrastructure service providers—in an open and transparent manner. In addition to the sale of shares or assets, it may also offer concessions or the right to operate publicly owned assets, without selling the assets themselves.
On September 28, 2000, the Government promulgated the PC Ordinance 2000, which strengthened the PC’s legal authority as a corporate body for implementing the government’s privatisation policy. The measure increased PC’s accountability and independence and is expected to provide greater comfort to investors. It also specified that 90 percent of net privatisation proceeds would be allocated to debt retirement and 10 percent to poverty alleviation programs.
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describing the functions, jurisdiction, and administration of the PC.
Click here to download all rules and
regulations.
In November 2000, with a view to enhancing the stature of privatisation and facilitating transactions, a Ministry of Privatisation was created. The Chairman of the PC was appointed as Minister for Privatisation, while the Secretary of the PC became the ex-officio Secretary of the Ministry of Privatisation.
The staff of the PC comprises of civil service officers and in-house consultants such as transaction managers, along with support staff. The staff reports to the Secretary. Presently, the PC employs 11 civil service officers and 13 in-house consultants, about half the number it did in 1999. Civil service officers make decisions, with important decisions requiring approval by the Chairman on the recommendations of the Secretary. Certain policy and important decisions require approval of the Board of the Privatisation Commission .
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PC's organization chart., while a few key decisions require the approval of the Cabinet Committee on Privatisation (CCOP), based on the recommendations of the PC Board.
Typical tasks for transactions managers include preparing the terms of reference and hiring external consultants, overseeing and assisting the external consultants to ensure timely submission of deliverables, liaising with the relevant ministry staff, regulators, and management of the entity being privatised, and advising on sectoral policies and regulatory frameworks related to privatisation. In-house consultants are also involved in providing legal, accounting, and public relations support.
The Board of the Privatisation Commission
The Board of the Privatisation Commission is headed by the Chairman and comprises
7 other regular members. Six of the regular members are prominent professionals from
the private sector, all of whom are serving without remuneration. All the four
provinces are represented on the Board of PC. The two government members include the Chairman and the Secretary of the PC. In addition, the Secretaries of the respective Divisions whose matters are being discussed at a Board meeting are invited to be members for the issue under consideration.
Click here to obtain a list of the current Board members.
Cabinet Committee on Privatisation (CCOP)
Created in 1991, the CCOP has operated
continuously except for the period September 1998 to February 2000, when a
Privatisation Board of Pakistan headed by the Prime Minister replaced it.
This Committee of the Cabinet was headed by the Minister for Finance.
Presently this is headed by the Prime Minister and includes the Ministers
for Commerce, Industries, Production and Special Initiatives, Information
Technology and Telecommunications, Labour, Manpower and Overseas Pakistanis,
Petroleum and Natural Resources, Ports and Shipping, Privatisation and
Investment, Textile Industry, Water and Power and Adviser to the Prime
Minister on Finance. It also includes the Deputy Chairman, Planning
Commission. According to its terms of reference issued in February 2000, the
CCOP is to:
Formulate the Privatisation Policy for approval of the Government/Cabinet
Approve the State Owned Enterprises to be privatised on the recommendation of the Privatisation Commission or otherwise
Take policy decisions on inter-ministerial issues relating to the privatisation process
Review and monitor the progress of privatisation
Instruct the Privatisation Commission to submit reports/information/data relating to the privatisation process or any matter relating thereto
Take policy decisions on matters pertaining to privatisation, restructuring, deregulation, regulatory bodies and Privatisation Fund Account
Approve the Reference Price in respect of the State Owned Enterprises being privatised
Approve the successful bidders
Consider and approve the recommendations of the Privatisation Commission on any matter
Assign any other task relating to
privatisation to the Privatisation Commission.