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Draft law to protect

privatisation deals

being vetted

ISLAMABAD: The Law Ministry is vetting a draft law sent by the Privatisation Commission (PC) to protect all future privatisation deals from being challenged in any court.

Once the draft law was approved by the Law Ministry, the government will establish 20 special tribunals for hearing litigation cases filed by individuals and groups against the commission. The draft law has proposed the protection of all future deals from being challenged in any court of law.

"In fact the idea is to restore the confidence of local and foreign investors in the privatisation programme of Pakistan," informed sources said. The fears of new buyers will have to be allayed in order to facilitate future investment in the privatisation programme.

There have been allegations against the PC in the past for not adhering to transparency in the privatisation deals both during the PPP and PML(N) governments for which cases have been filed in different courts.

The sources said the draft law, once approved by the Law Ministry would empower the PC to take independent decisions. The privatisation plan, they said, will be launched after the promulgation of an ordinance by the President in this connection.

The process will be undertaken in three phases.

During the first phase, those public sector entities will be privatised which will take eight months. The second phase would witness the disinvestment of entities to be undertaken in 18 months while in the third experience the privatisation of those units will go beyond 18 months.

Initially, 5 to 10 percent shares of the state corporations will be off loaded at the stock exchange in the country. In this regard, fresh instructions have been issued by the finance minister to the PC chairman.

The sources said a decision has also been taken at a higher level that bigger industrial units such as the Heavy Mechanical Complex (HMC), Pakistan Steel Mill and other such units would not be put up for privatisation because of their declining financial position.ÑPPI