Punjab Privatization Board Act, 2010
(Act IV of 2010)
[23 February 2010]
An Act to provide for
the establishment of the Privatization Board.
Preamble.– Whereas it is expedient to
provide for the establishment of the Punjab Privatization Board for carrying
out a competitive, fair and transparent process for effecting privatization
of the properties of the Government and to provide for an expeditious
mechanism to resolve disputes relating to privatization and to provide for
It is enacted as follows:---
1. Short title, extent and
commencement.– (1) This Act may be
cited as the Punjab Privatization Board Act 2010.
(2) It extends to whole of
(3) It shall come into
force at once.
In this Act,---
(a) “Board” means the Punjab
Privatization Board established under section 3;
(b) “Board Fund” means the Fund of
the Board established under section 20;
(c) “Chairperson” means the
Chairperson of the Board;
means a company, a cooperative society or any other person;
(e) “family” means a spouse, a parent, a grand parent, a sibling or an
adopted sibling, a child or an adopted child, an uncle or an aunt, a
maternal or paternal first cousin, or any of these relatives of the spouse;
year” means the year starting on the 1st July and ending on 30th
June of each year;
(g) “Government” means the Government
of the Punjab;
means a member of the Board;
“person” includes an individual, partnership, trust, company, association of
persons, body corporate, body of individuals, whether or not having separate
legal entity, other than the Government;
means prescribed by the rules or the regulations;
includes a transaction by virtue of which any property, right, interest,
concession, or management thereof or any enterprise, wholly or partially,
owned by the Government, is transferred to any person under the provisions
of the Act;
(l) “property” means a property
owned by the Government and includes any right, title or interest in
property, movable or immovable, and in whole or in part, or any instruments
of production or any enterprise, wholly or partially, owned by the
means the regulations framed under section 43;
means the rules made under section 42;
(o) “Secretary” means the Secretary
of the Board; and
(p) “staff” means an employee of the Board and
includes a deputationist, advisor, consultant,
auditor, and a contract employee.
Privatization Board.– (1) The
Government shall, by notification in the Gazette, establish a Board, to be
called the Punjab Privatization Board.
(2) The Board shall be a
body corporate having perpetual succession and a common seal, with power,
subject to the provisions of this Act, to enter into agreement, acquire,
hold, manage, and dispose of property, and to sue and be sued in its name.
(3) The principal office of the Board shall be at
Lahore, but the Board may establish its regional offices at such
other places in the Punjab
as it may consider necessary for the accomplishment of the objectives of
4. Composition of the Board.–
(1) The Board shall consist of the Chairperson and the following
(a) Two members of the Provincial
Assembly of the Punjab
at least one female member of the Assembly]
nominated by the Government;
(b) Senior Member, Board of Revenue of
(c) Chairman Planning and Development
Board of the Government;
(d) Member (Colonies), Board of Revenue
of the Government;
(e) Secretary to the Government,
(f) Secretary to the Government,
(g) Managing Director, Bank of
(h) Secretary of the Board
(2) The Chairperson may,
with the prior approval of the Government, co-opt any other person as member
either for a particular meeting or purpose, or for a specified period.
(3) The nominated members
shall serve during the pleasure of the Government.
(4) A member, other than an
ex-officio member, may resign from his office by a notice in writing to the
Government and his seat shall fall vacant on the acceptance of the
(5) The members may receive
such fees and allowances as may be prescribed.
(6) A member shall not,
directly or indirectly, receive any profit from his position as the member
except such fee, allowances and other expenses incurred by him in the
performance of his duties as may be prescribed.
No person shall be appointed or shall continue as the Chairperson,
Secretary or member, if he,---
(a) has been
convicted of an offence involving moral turpitude; or
(b) has been
found guilty of misconduct; or
has been declared to be of unsound mind by a
competent Court; or
(d) has been
or is adjudged as undischarged insolvent; or
incapable of discharging his duties by reason of physical or mental
infirmity and has been so declared by a Special Medical Board appointed by
the Government; or
(f) is an
employee or member of the staff of the Board other than the Chairperson, and
the Secretary; or
(g) fails to disclose any conflict of
interest at or within the time provided for such disclosure by or under this
Act or contravenes any of the provisions of this Act; or
disqualified by the order of the Court to hold any public office; or
(i) is or
has been at any time disqualified for employment in, or dismissed from, the
service of Pakistan or the service of any Provincial Government or a body or
authority under the Provincial or Federal Government; or
to attend more than three consecutive meetings of the Board without leave.
6. Functions of the Board.–
(1) The Board shall,---
privatization policy guidelines to the Government;
for the approval of the Government a comprehensive privatization programme;
manage, coordinate, implement, and control the privatization programme
approved by the Government;
overall directions for the implementation of the privatization related
activities including restructuring, deregulation, and post-privatization
matters in the sectors designated by the Government;
take operational decisions on matters pertaining
to the privatization;
(f) issue directions and instructions for the
management of a business, commercial or industrial undertaking falling
within the purview of the privatization programme approved by the
the activities of the privatization programme;
the reserve and base price of the assets and properties to be privatized;
determine, with the prior approval of the Government, the final price of the
(j) envisage, approve and take decisions and perform all acts to
implement the pre-privatization restructuring, labour
rehabilitation, and severance schemes, and all other related matters as
approved by the Government;
(k) appoint advisors, consultants,
valuators, actuaries, lawyers, auditors, and such other staff as may be
necessary for the discharge of its functions under this Act, and determine
the terms and conditions of such appointments;
such other functions as may be incidental to carrying out the privatization
the budget estimates, the audited accounts, and the annual report of the
Board in accordance with the provisions of this Act, the rules and the
for any information or direct any research to be made for the furtherance of
the objective of this Act; and
(2) In the discharge of its
functions, the Board shall be guided by such instructions on questions of
policy as may be given to it by the Government or by an authority or officer
authorized by the Government.
Management and Administration
(1) The Government shall appoint a Chairperson for a period not exceeding
four years on such terms and conditions as the Government may determine.
(2) The Chairperson shall
hold office during the pleasure of the Government.
(3) The Chairperson may
resign his office subject to three months’ prior notice in writing to the
Government or on payment of three months’ pay in lieu of the notice.
(4) The Chairperson
responsible for the day to day administration of the affairs of the Board;
(b) have such powers,
including the powers of appointment, transfer, promotion, dismissal, and
other matters affecting the staff and employees, as are assigned under this
Act or are delegated by the Board or as may be prescribed.
(1) The Government shall appoint a Secretary of the Board for a period not
exceeding three years on such terms and conditions as the Government may
(2) The Secretary shall
hold office during the pleasure of the Government.
(3) Notwithstanding the
expiration of the term, the Secretary shall continue to hold office on the
same terms and conditions for a period of three months or till his successor
enters upon office, whichever is earlier.
(4) Nothing contained in this section
shall preclude the Government from appointing the same person as Secretary.
(5) The Secretary may
resign his office subject to three months’ prior notice in writing to the
Government or on payment of three months’ pay in lieu of the notice.
(6) The Secretary shall,---
perform such functions as are assigned to him under this Act; and
such powers, including the powers of appointment, transfer, promotion,
dismissal, and other matters affecting the staff and employees, as are
delegated by the Board or as may be prescribed.
The Board may constitute committees of its members and entrust them such
functions and powers as it may deem fit.
(1) The Board shall regulate the procedure for its meetings.
(2) A meeting of the Board
shall be held at such time and place as the Chairperson or a majority of
members may from time to time determine.
(3) Members shall have
reasonable notice of the time and place of the meeting and the matters on
which a decision by the Board shall be taken in such a meeting.
(4) The Chairperson shall
preside over a meeting of the Board; and, in the absence of the Chairperson,
the members present in the meeting may select an acting Chairperson for that
(5) Seven members,
including the Chairperson, shall constitute the quorum for a meeting of the
(6) The Board shall take
decisions by the majority of its members present and voting, and in case of
a tie, the person presiding the meeting shall have a casting vote.
(7) The Board shall cause
minutes to be kept of proceedings of every meeting of the Board and of every
meeting of a committee established by the Board. The decisions of the Board
shall be recorded in writing and signed by the Chairperson.
(8) The Secretary shall
maintain a complete record of the minutes and the decisions of the Board in
the prescribed manner.
(9) The proceedings of a meeting of the Board shall not be invalid
merely on account of any vacancy or defect in the constitution of the Board.
11. Technical experts.–
The Board or any of its committees may invite any technical expert or other
person possessing specialized knowledge of any subject or the representative
of a Government institution for assistance in the performance of its
12. Delegation.– The Board
may, subject to such conditions and limitations as it may deem fit to
impose, delegate any of its powers or functions to the Chairperson,
Secretary, a committee, or one or more members, except the power to,---
amend or repeal regulations; or
the privatization policy standards, and procedures for the operation of the
a committee or fill a vacancy in a committee; or
the annual budget, audited accounts and the annual reports; or
consultants, advisors and agents under section 14 and determine the terms
and conditions of such employment.
(1) The Board may employ persons who shall be paid such remuneration and
allowances and shall hold their employment on such terms and conditions as
may be prescribed and until so prescribed, as may be determined by the
(2) The employees of the
Board shall hold office during the pleasure of the Board and shall be liable
to such disciplinary action as may be prescribed.
14. Advisors, consultants and agents.–
(1) The Board may employ any technical, professional and other agents,
advisors and consultants including bankers, engineers, architects,
valuators, accountants, auditors, lawyers, actuaries, assessors,
auctioneers, and other persons to transact any business or to do any act
required to be transacted or done in the exercise of its powers, the
performance of its functions, or for better implementation of the purposes
of this Act.
(2) The Board shall
determine the terms and conditions of the employment under sub-section (1).
15. Public servants.– The Chairperson,
Secretary, members, officers, employees and other persons authorized to
perform or exercise any function or power under this Act or rendering
services to the Board as agents, advisors or consultants shall be deemed to
be public servants within the meanings of section 21 of the Pakistan Penal
Code 1860 (XLV of 1860).
Conflict of Interest
16. Conflict of interest.–
(1) For purposes of this section, the term member shall include the
Chairperson and Secretary.
(2) The pecuniary interest
of the family or close personal or business associates of a member shall be
considered as the pecuniary interest of the member.
(3) A member
shall be in a situation of conflict of interest if–
is an employee or a paid consultant of a business entity that has, or of a
trade association or business entity that has, a substantial interest in the
owns, controls, or has, directly or indirectly, more than ten percent
interest in a business entity that has a substantial interest in the
receives more than twenty-five percent of his individual income from a
business entity that has a substantial interest in the privatization;
(d) not being an ex-officio
member, he is in employment of any government in Pakistan, or a body managed
or controlled by the Government, except as a teacher or academician in an
institute of higher learning; and
family, business partner or close personal associate is likely to benefit,
either directly or indirectly, financially or otherwise, from his position
on the Board.
(4) A member shall report
to the Board any conflict of interest as soon as he becomes aware of the
conflict and, in any case, before the Board or a committee takes cognizance
of the matter.
(5) If a member is not certain about a situation of conflict of
interest, he shall place the matter before the Board for advice and
(6) The decision of the
Board as to the conflict of interest shall be final.
(7) A member shall not take
part in the proceedings of the Board or a committee in which any question of
his conflict of interest is on the agenda.
(8) The disclosure of
conflict of interest and the decision of the Board shall be recorded in the
minutes of the meeting.
17. Disclosure of interest.–
(1) If the Chairperson, Secretary, a member, staff or other employee,
including an advisor, consultant, agent, actuary, valuator, lawyer, and
auditor or the family of such a person has, direct or indirect, interest in
any matter relating to privatization, such person shall forthwith disclose
that interest to the Board and the Board may take such action as it may
(2) If a person present at
a meeting of the Board or of a committee or
his family or his professional or business partner or associate has direct
or indirect interest in the subject matter under consideration in that
meeting, he shall–
disclose the interest; and
from the meeting during the consideration of that matter.
18. Prohibition of insider trading.–
The provisions of Chapter III-A of the Securities and Exchange Act, 1969
(XVII of 1969) or any other law for the time being in force on the subject
shall, as nearly as possible, apply to the members, employees, or any other
person associated with the Board.
(1) The Chairperson shall not,
during his term of office, engage himself in any other service, business,
vocation or employment in respect of or relating to privatization activity
and before the expiration of two years thereof, enter into the employment
of, or accept any advisory or consultancy relationship with, any person
engaged in any sort of privatization.
(2) The Chairperson,
Secretary or a member shall not have any direct or indirect financial
interest, or have any connection with any person engaged in privatization so
long as he holds office and for a period of two years thereafter.
20. Board Fund.–
(1) There shall be established, for purposes of this Act, a Board Fund
to be administered and controlled by the Board.
(2) The Board Fund shall
releases from the Government;
other than budgetary releases, from the Government;
proceeds till the sale proceeds are transferred to the Provincial
Consolidated Fund of the Government in the prescribed manner;
apportioned sale proceeds as may be prescribed;
supplementary contributions from privatization; and
charges, fines, confiscations, shares in profits, donations and gifts.
(3) The Board shall meet
its operational expenses from the Board Fund, except from the sale proceeds
to be transferred to the Provincial Consolidated Fund.
(4) It shall be the duty of
the Board to conserve the Board Fund while performing its functions and
exercising its powers under this Act.
The Chairperson shall prepare annual budget comprising the likely
incomes and expenses for the ensuing financial year and submit it to the
Board for approval in the form and manner as may be prescribed.
22. Bank accounts.–
The Board may open and maintain its accounts at such scheduled banks as
it may, from time to time, determine in consultation with the Government.
(1) The Board shall maintain proper accounts and other records relating to
its financial affairs including its income and expenditures and its assets
and liabilities in such form and manner as may be prescribed.
(2) As soon as may be,
after the end of each financial year, the Board, in the manner prescribed,
shall cause to be prepared for that financial year statements of account of
the Board which shall include a balance-sheet and an account of income and
(1) The Auditor General of
Pakistan shall annually audit the accounts
of the Board.
(2) The Government, in
addition to the audit under sub-section (1), shall cause the accounts of the
Board annually audited by a Chartered Accountant or a firm of Chartered
25. Annual report.–
(1) The Board shall, within three months of the close of a financial
year, submit to the Government an annual report.
(2) The report shall
statement of accounts mentioned in section 23;
comprehensive statement of the work and activities of the Board during the
preceding financial year; and
other matters as may be prescribed and as the Board may consider
(3) The Government shall,
within two months of receiving the report from the Board, give notice for
laying the report in the Provincial Assembly of the
Punjab and shall lay the report in the first available session
of the Assembly.
26. Privatization programme.–
Subject to the provisions of this Act, the Board shall prepare and, after
approval by the Government, carry out the privatization programme in such
manner and form as may be prescribed.
27. Valuation of property.– (1) The Board shall appoint or hire a valuation firm or agency for
valuation of the property identified for privatization.
(2) The valuator shall
evaluate a property in the prescribed manner and submit the report to the
(3) The Board may take such
action on the report as is considered necessary in public interest.
(4) The Government may
prescribe criteria and other terms and conditions for appointment or hiring
of a valuation firm or agency.
28. Modes of privatization.–
The Board shall carry out privatization, in accordance with the
prescribed procedure, through any of the following modes–
(a) sale of
properties or shares through public auction or tender;
offering of shares through a stock exchange; or
of management or employee buyouts by management or employees of a Government
29. Advertisement of
privatization.– (1) The Board shall,
in consultation with the Government, give notice of its intent to privatize
(2) The Board shall, for
each proposed privatization, publish in at least two daily English and Urdu
newspapers of national circulation, on at least two occasions not less than
seven days apart, notice of the availability of the property for
privatization and the salient terms and conditions of the proposed
(3) The Board may, in
public interest, advertise the proposed privatization in newspapers with
(4) The Board shall also
publish all the processes of privatization including availability of the
property for privatization on its website and website of the Government.
30. Record of proceedings.–
The Board shall maintain a complete record of the privatization
processes including that of proceedings of the auctions and sales.
31. Power to enter.–
An employee, staff, officer, and member of the Board, generally or
specially authorized, may enter, survey and measure any property under
privatization, and may ascertain or demarcate the boundaries of any such
32. Jurisdiction of High Court.–
Notwithstanding anything contained in any other law for the time being
in force, the Lahore High Court shall exercise exclusive original civil and
adjudicate and settle all matters related to, arising from or under or in
connection with this Act;
adjudicate and settle all matters transferred to it pursuant to section 35;
(c) to try
offences punishable under this Act.
33. Procedure and power in civil
matters.– (1) In exercise of its civil
jurisdiction under this Act, the Lahore High Court shall,---
the procedure, as nearly as possible, provided in the Code of Civil
Procedure, 1908 (V of 1908); and
(b) have all
the powers vested in the Civil
under the Code of Civil Procedure, 1908 (V of 1908).
anything contained in sub-section (1), the Lahore High Court may, having
regard to the facts of the case, follow the summary procedure, as nearly as
possible, provided for in Order XXXVII of the First Schedule to the said
34. Procedure and power in criminal
cases.– In exercise of its criminal
jurisdiction under this Act, the
High Court shall,---
(a) in trial
of all offences before it, follow the procedure contained in Chapter XXIIA
of the Code of Criminal Procedure, 1898 (V of 1898); and
(b) in addition to the powers already
vested in it, exercise the powers as are vested in the Court of Sessions
under the Code of Criminal Procedure, 1898 (V of 1898).
35. Transfer of cases.–
(1) All legal proceedings whatsoever and matters related to or under or
in connection with or arising from privatization, the privatization process
or privatization programme pending on the commencement of this Act before
any forum, tribunal or Court other than the Federal
Shariat Court or Supreme Court of Pakistan, shall stand transferred
to the Lahore High Court.
(2) In respect of matters
transferred to the Lahore High Court under sub-section (1), the Lahore High
Court shall proceed from the stage at which the proceedings had reached
immediately prior to the transfer and may not recall or rehear any witness
and may adjudicate on the evidence already recorded or produced before the
forum, tribunal or Court from which the proceedings were transferred.
36. Offences and penalties.–
(1) A person who dishonestly commits a breach of the terms of any
agreement, contract, guarantee or such other instrument or document executed
by him in relation to privatization, shall, without prejudice to any other
action which may be taken against him under this Act or any other law, be
punishable with imprisonment of either description for a term which may
extend to one year and shall also be liable to fine, and the High Court may
order the person to deliver or make payment to the Board, any property or
amount in respect of which any agreement, guarantee, instrument or document
(2) A person who knowingly makes a statement or a declaration which
is false in material respect at the time of privatization and obtains the
subject matter of the privatization from the Board on the basis thereof,
shall be guilty of an offence punishable with imprisonment of either
description for a term which may extend to one year or with fine or with
(3) A person who resists or
obstructs, either by himself or on behalf of the judgment debtor, through
the use of force or otherwise the execution of a decree, shall be punishable
with imprisonment which may extend to one year or with fine or with both.
(4) A person who obstructs
the lawful access of an employee or staff of the Board to the property in
accordance with section 31, shall be punishable
with imprisonment which may extend to one year or with fine or with both.
(5) Where the person guilty
of an offence under this Act, is a company or other body corporate, the
chief executive, by whatever name called, and any director or officer of the
company involved shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished under this Act.
(6) An offence under this
Act shall be non-cognizable and compoundable by or under the authority of
(7) The Lahore High Court
shall not take cognizance of an offence under this Act unless the Board or
an authorized person has filed a written complaint against a person.
37. Appeal.– (1) Any
person, the Board or the Government, aggrieved by a final order, judgment,
decree or sentence, passed by a single Judge of the Lahore High Court may,
within thirty days of such order, judgment, decree or sentence, prefer an
appeal which shall be heard by a larger Bench of the said Court.
(2) Any person, the Board
or the Government, aggrieved by a final order, Judgment, decree or sentence
passed by a larger Bench of the Lahore High Court may, within thirty days of
such order, judgment, decree or sentence, prefer an appeal to the Supreme
Court of Pakistan.
(3) No appeal, review or revision
shall lie from any interlocutory order of the Lahore High Court.
Regulatory and other Provisions
38. Extent of transfer of property.–
Notwithstanding anything contained in this Act, the Government shall not
privatize any property except to the extent of its title, right, interest or
share in such property.
39. Directions by the Board.–
(1) Any enterprise which is approved by the Government as eligible for
out any directions in writing issued by the Board;
(b) keep up
to date business records and books of accounts;
perform any action that would result in the assets of the enterprise being
lost or wasted;
(d) not incur
any liability other than in the ordinary course of business without the
prior written approval of the Board;
(e) not give
any person information other than in the ordinary course of business which
might confer any advantage on that person or a potential buyer; and
from taking any action, which may cause industrial unrest.
(2) The Board, shall after
approval under sub-section (1), take all steps including change of
management which are necessary for initiating and completing the
privatization in accordance with sound commercial principles and practices
conducive to efficiency and economy.
(1) The Board may call for any information required by it for carrying
out the purposes of this Act from any person involved, directly or
indirectly, in privatization activities or any matter incidental or
(2) If any person, who is
liable to provide the required information called by the Board, fails to
provide such information to the Board, he shall be liable to such action as
may be prescribed.
41. Fidelity and immunity.–
(1) The Chairperson, Secretary, members, consultants, officers, or other
employees of the Board shall make such declaration of fidelity and secrecy
as may be prescribed.
(2) No suit, prosecution or
other legal proceedings shall lie against the Government, Board,
Chairperson, Secretary, members, consultants, officers or other employees of
the Board in respect of anything done or intended to be done in good faith
under this Act.
42. Power to make rules.–
The Government may, by notification, make rules for carrying out the
purposes of this Act.
43. Power to make regulations.–
(1) Subject to the provisions of this Act and the rules, the Board may frame
regulations for exercising its powers and carrying out its functions under
(2) Without prejudice to
the generality of the foregoing power, the regulations may provide for all
or any of the following matters,---
and manner of valuation of the properties or assets to be privatized;
qualifications and amount of the service charges or evaluation fees
to be paid to the valuators;
qualifications, powers, functions, fees, and allowances for
appointment as advisor, consultant, legal advisor, counsel, valuator,
actuary, auditor, and other assignments;
qualifications and terms and conditions of service of the Staff and
method of recruitment;
place, and manner in which meetings of the Board shall be held;
maintenance and operating the bank accounts of the Board;
and procedure for privatization of any or all of the properties held by the
Board for privatization; and
for identification of the assets and properties requiring privatization.
44. Support of the Government.–
The Government and all its agencies, particularly the concerned enterprises
owned and controlled, wholly or partially, directly or indirectly, by the
Government, shall render support to the Board to perform its functions and
fulfill its objectives under this Act.
The Government or any of its agencies authorized by it, may of its own or on
a complaint oversee, scrutinize or investigate any privatization
transaction, and take necessary action in accordance with law.
46. Removal of difficulties.–
If any difficulty arises in giving effect to any provision of this Act,
the Government may make such order, not inconsistent with the provisions of
this Act, as may appear to it to be necessary for removing the difficulty.
47. Act to override other laws.–
The provisions of this Act shall have effect notwithstanding anything
contained in any other law.
48. Exemption from taxes.–
(1) Notwithstanding anything contained in any other law, the Board shall not
be liable to pay, and shall be exempted from the payment of, any taxes,
duties, levies, charges and fees payable under, or in pursuance to any law
of the Punjab, in respect of any of its business, assets, income or wealth.
(2) The Board may recommend
to the Government to approach the Federal Government or any body or
authority of the Federal Government for the exemption of the income or
property of the Board from levy of any fee, charge, tax,
cess or duty by the Federal Government, or by
body or authority of the Federal Government.