Sources close to Finance Minister Hafeez Shaikh alleged that over the past six months, the meeting could not be convened because of Privatisation Minister Senator Waqar Ahmad’s reluctance to work with the finance minister, who chairs the meeting.
The CCOP is tasked with formulating the privatisation policy, approving entities for privatisation, taking decisions on the inter-ministerial issues and tracking the transactions of privatised entities.
Finance ministry officials alleged that the privatisation minister, an aspirant to the post of finance minister following Shaukat Tarin’s resignation, had developed differences with the sitting finance minister.
These allegations, however, are vehemently denied by Senator Waqar Ahmad.
The meeting has not been convened for more than a year and the finance minister took charge about six months back, said Senator Waqar.
“There are so many other things to catch up…no time is left for the CCOP meeting,” he added.
Finance ministry sources said that both ministries have divergent views over the privatisation ministry’s bid to float a bond in the London Stock Exchange. Senator Waqar wants to float $500 million to $1 billion worth of reverse convertible bond – a financial instrument for borrowing money, by selling shares of public sector entities. He, is flying to Britain on December 10 to lead a road show.
The finance ministry, said the source, has an objection on the ground that increasing the amount of debt or its management “is not the business of the privatisation ministry”.
“I am going with the permission of the prime minister and it is not about debt raising but about equity management,” said Senator Waqar.
A former secretary for privatisation disagreed and said that the finance ministry does have a role in floatation of exchangeable bonds and the privatisation ministry cannot do so without its consent. For issuing a convertible bond, he says, permission is needed from a public sector entity’s board of directors. Consent has not been obtained from either. He said international conditions for privatisation have become conducive and the time is right to call a CCOP meeting.
Official documents show that on February 17 last year, the CCOP approved a new privatisation policy. After that, according to the documents, no follow-up meeting was called either to implement the policy or to take up 23 entities which are on active list for privatisation.
The government allocated Rs72.7 million budget to the privatisation ministry to meet the target to privatise at least eight public sector entities. Almost five months have gone by and there has been no progress on this strategic target.
Ruling out reports of a tussle between finance and privatisation ministers, cabinet secretary Rauf Chaudhry said that the CCOP meeting could not be convened because of “other (pressing) engagements”. Rauf said the commission’s restructuring was one of the reasons for the delay.
Another finance ministry official said that an important meeting will be communicated to the presidency early next week.
Published in The Express Tribune, November 21st, 2010.
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