Centre-provinces disputes: SC to decide high court’s jurisdiction in mediation

PHC has restrained govt from selling OGDCL shares

ISLAMABAD: The Supreme Court has decided to determine if the high court has the jurisdiction to arbitrate disputes related to distribution of natural resources between the centre and the provinces.

The three-member bench of the top court, headed by chief justice Nasirul Mulk was hearing the federal government’s appeal against the Peshawar High Court’s October 3 interim order which had stayed the privatisation of Oil and Gas Development Company Limited (OGDCL).

On October 10, the court had allowed the government to continue with the bidding for OGDCL shares, but restrained it from transferring or selling its shares till the case is decided.

While referring to Article 184 (1) of the Constitution, the bench directed the attorney general of Pakistan, as well as K-P government’s counsel to assist it on determining whether the high court has the jurisdiction to decide conflicting issues related to the distribution of natural resources between the national and provincial governments.

During Monday’s hearing, the chief justice questioned who will implement the formula of resource distribution between the centre and the provinces.

However, the attorney general (AG) contended that the PHC had no jurisdiction to halt the privatisation of OGDCL.

“The bidding process, which began in May, is still going on and will be completed within the next two days,” he said.

The AG argued that the PHC verdict had not only shaken the confidence of international bidders but also dented the chance of possible foreign investment in the country.

Subsequently, he requested the court to allow the federation to complete the sale of OGDCL shares as the bidding amount shall be credited to Federal Consolidated Fund.

During the hearing, K-P government’s lawyer Wasim Sajjad contended that the PHC should be allowed to decide whether it has the jurisdiction to decide disputes relating to natural resources between the centre and the provinces.

Published in The Express Tribune, October 14^th, 2014.