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Within the overall Government policy of strengthening
the private sector’s role in the endowment of goods and services and with
the approval of Cabinet, the Privatisation Commission (PC) is entrusted
with the task of privatisation of federal government assets – such as its
shares in banks, industrial units, public utilities, oil, gas and
transport companies, and infrastructure service providers - in an open and
transparent manner. In addition to the sale of shares or assets, it may
offer concessions or the right to operate publicly owned assets.
The PC was established in 1991 to undertake Privatisation of public sector
entities. On September 28, 2000, in order to strengthen the PC’s legal
authority as a corporate body for implementing the government’s
privatisation policy; the Government promulgated the Privatisation
Commission Ordinance 2000. This legal framework increased PC’s
independence and accountability and has provided greater comfort to
investors. It was also specified that
90 percent of net privatisation proceeds would be allocated to debt
retirement and 10 percent to poverty alleviation programs.
PC is headed by the Chairman who is also
the Chairman of the Board of the Privatisation Commission. Currently this
post is held by Minister for Privatisation. The remaining staff consists
of regular civil servants, consultants/ transaction managers and support
staff. Currently 73 Government officers/staff, 20 Consultants and 16
Technical Assistants are in place. Government officers and Consultants
make recommendations for decisions through collective wisdom and submit
cases for approval of the Secretary and the Chairman.
Click here to obtain the
PC's organization chart. Policy and important
decisions related to privatisation transactions require approval of the
Board of the PC while final policy decisions are made by the Cabinet
Committee on Privatisation (CCOP).
Privatisation, especially of major entities, is a technical and complex
activity requiring inputs from highly qualified and experienced
professionals. PC has, therefore, hired professionals from the private
sector designated as Consultants who are responsible for processing of the
privatisation transactions. The basic criteria for appointment of
Consultants is strong academic background, specialised skills and
experience in the relevant field like business administration, economics,
commerce, finance, accounting and law etc. depending upon the nature of
the transactions. Consultants engaged have quality experience in the
private sector institutions. The privatisation transactions are being
processed by the Transaction Managers whereas technical and legal support
is provided by other external Consultants. These Consultants have further
improved their knowledge and experience by working in the Privatisation
Commission. Their services are being utilized efficiently and effectively
by the Commission.
Typical tasks for in house consultants / transactions managers include
preparing the terms of reference and hiring external consultants/advisors,
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 privatized, and advising on
sectoral policies and regulatory frameworks related to privatisation.
In-house consultants/transaction managers are also involved in providing
legal, financial and technical support.
The Board of the Privatisation Commission
The Board of the Privatisation Commission is headed by the Chairman and comprises
15 other regular members. 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.