Only CCI empowered to approve privatisation: Rabbani

The Senate Standing Committee on Privatisation was informed by Senator Raza Rabbani that the approval of privatisation of any institution cannot be obtained from the cabinet, as according to the Constitution, the approval can only be obtained from the Council of Common Interests (CCI).

“The final approval of privatisation of any government institution will be given by the CCI,” Rabbani told the Senate standing committee meeting held under the chairmanship of Senator Shamim Afridi on Thursday. Minister for Privatisation Muhammad Mian Soomro, Secretary Privatisation Hassan Nasir Jami and others were in attendance.

Rabbani said, “The cabinet or the privatisation committee of the cabinet has no authority in it. Let me know why this has not been done for years.”

The Privatisation Division officials said, “Our law says that the transaction structure and reference price will be approved by the cabinet.”

Rabbani said, “I will bring in the next meeting a list of institutions whose privatisation had to be approved by the CCI. Your law is subject to the Constitution but here the law is against the Constitution. Article 154 of the Constitution explicitly denies your law.”

Privatisation Minister Muhammad Mian Soomro said he would inform the committee after consulting the law ministry on the matter.

At the onset of the meeting, Secretary Jami said that privatisation of government institutions is done for economic and social development.

“Proceeds from the privatisation process go to the exchequer, with 90% spent on repaying government debt and 10% on poverty alleviation,” he said, adding that the process of privatisation of any asset or entity is transparent.

Senator Sabir Shah said that in the privatisation of the Pakistan Telecommunication Company Limited, the assets were sold at exorbitant prices. “Once the privatisation process is complete, there should be an institution that reviews transparency.”

Senator Anwarul Haq Kakar said that privatisation of any successful model which has assets is not understood. “An example of this is the PTCL.”

Kakar said that there were no people on the privatization board who protect the interests of the buyer.

The secretary privatisation said that all aspects of privatisation are being reviewed at present.

Senator Irfan Siddiqui said, “We should be told who decides the privatisation of any institution.”

Privatisation Minister Soomro said that the Privatization Commission Board, the Cabinet Committee and the cabinet decide about the privatisation.

Soomro said, “Privatisation of any institution takes one-and-a-half to two years.”

The privatisation secretary said that there are 212 state-owned enterprises in total, 172 entities have been privatised and more than Rs648 billion has been raised from them. “There are 10 entities whose losses are over 90%.”

Soomro said that loans are paid off by selling government assets, many of which have been seized in several parts of the country and cases are in the courts.

The committee postponed the Privatisation Commission Amendment Bill 2021.

Later talking to the media, Soomro said that investors could not come to Pakistan due to review of power policy.

“The transaction of LNG power plants is larger than the PSDP size and it is the first transaction of its kind,” Soomro said, adding that the privatisation process of power plants will be completed this financial year.

He announced that the process of privatisation of institutions will start from this quarter. The privatisation of SME Bank, Services International Hotel and Convention Centre will be in the current financial year. “We will try to achieve the privatisation targets allocated in the budget.”