Privatization Commission Ordinance, 2000
LII OF 2000
28th September, 2000
An Ordinance to provide for the establishment of the Privatisation Commission
The following Ordinance made by the President
is hereby published for general information
WHEREAS it is expedient to provide for the establishment of the Privatisation Commission for implementing the privatisation policy of the Federal Government and to provide for matters connected therewith or incidental thereto;
WHEREAS the Federal Government is carrying out a programme of privatisation;
WHEREAS it is expedient to provide for a fair and transparent process of privatisation to secure transactions resulting therefrom;
WHEREAS it is expedient to provide for the utilization of the proceeds of privatisation for the retirement of Federal Government debt and for poverty alleviation
WHEREAS it is expedient to provide for an expeditious mechanism to resolve all disputes relating to privatisation;
WHEREAS the National Assembly and the Senate stand suspended in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999;
AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action;
NOW, THEREFORE, in pursuance of the aforesaid Proclamation of the fourteenth day of October, 1999, and Provisional Constitution Order No.1 of 1999, as well as Order No. 9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance.-
1. Short title, extent and commencement.-
(1) This Ordinance may be called the Privatisation Commission Ordinance, 2000.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.- In this Ordinance, unless there is anything repugnant in the subject or context,-
a. “Board” means the Board of the Commission.
b. “Cabinet” means the Cabinet of the Federal Government, and where authorized, includes the Cabinet Committee on Privatisation (CCOP) as constituted by the Cabinet from time to time;
c. “Chairman” means Chairman of the Commission;
d. “Commission” means the Privatisation Commission established under section 3;
e. “Commission Account” means the Commission Account established under section 14;
f. “member” means a member of the Board;
g. “person” includes an individual, partnership, trust, company or association or of body corporate or body of individuals, whether or not having separate legal personality, other than the Federal Government or any enterprise owned or controlled by the Federal Government;
h. “prescribed” means prescribed by rules made under this Ordinance;
i. “privatization” includes a transaction by virtue of which any property, right, interest,
concession or management thereof is transferred to any person from the Federal Government or any enterprise owned or controlled, wholly or partially, directly or indirectly, by the Federal Government;
j. “Privatisation Fund” means the Privatisation Fund established under section 16;
k. “privatisation proceeds” means the proceeds of privatisation received by the Commission;
l. “property” includes any right, title or interest in property, moveable or immovable and in whole or in part, and any means and instruments of production owned or controlled directly or indirectly by the Federal Government or any enterprise owned or controlled by the Federal Government whether in or outside Pakistan;
m. “regulations” means the regulations made under section 41 of this Ordinance;
n. “regulatory authority” means the Pakistan Telecommunication Authority established under the Pakistan Telecommunication (Re-Organisation) Act, 1996, (Act XVII of 1996), the National Electric Power Regulatory Authority established under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (Act XL of 1997), the Natural Gas Regulatory Authority established under the Natural Gas Regulatory Authority Ordinance, 2000 (Ordinance I of 2000), and such other authority as may be established under any law;
o. “rules” means the rules made under section 40 of this Ordinance;
p. “Secretary” means the Secretary of the Commission; and
q. “staff” means the staff of the Commission and includes a deputationist and a contract employee
3. Establishment of the Commission.-
(1) The Privatisation Commission is hereby established for carrying out the purposes of this Ordinance. The Privatisation Commission shall be a body corporate having perpetual succession and a common seal, with power, subject to the provisions of this Ordinance, to enter into agreements, contracts, acquire and hold property, both moveable and immovable, and to sue and be sued in its name.
(2) The Federal Government’s Notification No. F. 5(1) Adm-1/91 dated 22nd January, 1991 and other related notifications issued from time to time establishing and reconstituting the Privatisation Commission (hereinafter referred to as the “existing Commission”) are hereby rescinded and the existing Commission shall stand dissolved on the commencement of this Ordinance.
(3) Upon the commencement of this Ordinance, the dissolution of the existing Commission and establishment of the Commission under this Ordinance:
all, assets, rights, powers, authorities and privileges, and all property, moveable and immovable cash and bank balances, reserve funds investment and all other interests and rights in, or arising out of, such property and all debts, liabilities and obligations of whatever kind of the existing Commission subsisting immediately before the dissolution shall stand transferred to and vest in the Commission;
Notwithstanding anything contained in this Ordinance or any other law for the time being in force or in any agreement, deed, document or other instrument:
the Chairman, Secretary, members and other persons mentioned in clause (b) above shall be deemed to have been appointed or engaged by the Commission in accordance with the same terms and conditions of service as were applicable to them, immediately before such continuance in office or transfer under this Ordinance and no Chairman, Secretary, member, officer, consultant, adviser, auditor or other employee or staff whose services are so continued or transferred shall be entitled to any compensation because of such continuance or transfer;
Provided further that such civil servants may subject to their option be considered for absorption in the Commission in accordance with the regulations, the Civil Servants Act, 1973 (Act LXXI of 1973) and rules made thereunder;
the budget provision for the existing Commission shall stand transferred to the Commission Account upon authorization by the Federal Government;
the balance amount of Privatisation Fund account of the existing Commission shall stand transferred to the Privatisation Fund;
all debts and obligations incurred or contracts entered into or rights acquired and all matters and things engaged to be done by, with or for the existing Commission before its dissolution shall be deemed to have been incurred, entered into, acquired or engaged to be done by, with or for the Commission;
all suits and other legal proceedings instituted by or against the existing Commission before its dissolution shall be deemed to be suits and proceedings by or against the Commission and shall be proceeded or otherwise dealt with accordingly; and
a reference to the existing Commission in any statutory instrument or document shall, unless the context otherwise requires, be read and construed as reference to the Commission.
(4) All rules, regulations, notifications, orders or instructions in force immediately before the commencement of this Ordinance, shall, so far as they are not inconsistent with any of the provisions of this Ordinance, continue to be in force until repealed or altered by rules or regulations made under this Ordinance.
4. Location of Office.- The principal office of the Commission shall be in Islamabad. The Commission may establish regional offices at such other place or places in Pakistan as it considers necessary.
5. Functions and Powers of the Commission.- The Commission shall:
a. recommend privatization policy guidelines to the Cabinet;
b. prepare for the approval of the Cabinet, a comprehensive privatization programme;
c. plan, manage, implement and control the privatization programme approved by the Cabinet;
d. prepare and submit reports to the Cabinet on all aspects of the privatization programme;
e. facilitate or initiate legislation as approved by the Cabinet by or on behalf of concerned Ministry in connection with the privatization programme;
f. provide overall directions for the implementation of privatization related activities including, restructuring, deregulation and post-privatization matters in sectors designated by the Cabinet;
g. take operational decisions on matters pertaining to privatization, restructuring, deregulation, regulatory issues including approval of licensing and tariff rules and other related issues pertaining to the privatization programme approved by the Cabinet;
h. issue directions and instructions to the management of a business undertaking falling within the purview of the privatization programme approved by the Cabinet on all major important administrative, financial, reporting and policy matters;
i. publicize the activities of the privatization programme;
j. propose a regulatory framework, including the establishment and strengthening of regulatory authorities, to the Cabinet for independent and fair regulation of each industry sector falling within the purview of the privatisation programme;
k. advise the Federal Government in selection and appointment of the head and a member of a regulatory authority;
l. advise the Federal Government that monopolies are not created in the process of privatisation;
m. appoint advisors, consultants, valuers, lawyers and such other staff, both local and foreign, on such terms as it may determine to discharge its functions under this Ordinance;
n. approve and take decisions and perform all acts to implement pre-privatization restructuring, labour rehabilitation and severance schemes, and all other related matters as approved by the Cabinet;
o. invite applications for the privatization and ensure widest possible participation;
p. evaluate bids received according to criteria determined by the Commission from time to time and formulate recommendations for consideration by the Cabinet;
q. recommend to the Federal Government such labour and manpower rehabilitation programmes as may be necessary during privatisation and to develop a roster of such employees who may need rehabilitation;
r. advise measures to the Federal Government for improvement of public sector units till their privatization;
s. assist in the implementation of Federal Government policies on deregulation and privatization and advise the Federal Government on deregulating the economy to the maximum possible extent; and
t. perform such other functions that are incidental or ancillary to carry out the privatization programme approved by the Cabinet