Govt introduces bill in NA for ‘umbrella’ privatisation entity, seeks immunity for officials of bodies to be merged

The Pakistani government has introduced legislation in the National Assembly to merge two existing entities, the Public-Private Partnership Authority and the Privatisation Commission, into a newly formed Privatisation and Public-Private Partnership Commission. The proposed bill aims to streamline the process of privatisation and public-private partnership transactions, eliminating duplication of functions and processes that have previously existed between the two institutions.

The new commission, led by existing chairperson Muhammad Ali, will consist primarily of private sector members, with at least two women in key roles. Its mandate will include administering four public funds, including the privatisation fund, public contributory fund, viability gap fund, and PPP project development funds, all of which have been allocated through the federal budget, international lenders, and investment income.

A key aspect of the bill is the legal and investigation immunity granted to current and former officials of the merged entities, including chairmen, secretaries, board members, and consultants, for any acts of omission or commission carried out in good faith and in their personal capacities. The government has also committed to utilizing public funds to contest any legal cases arising from such immunity claims.

The Privatisation Commission will be reconstituted as the Privatisation and Public-Private Partnership Commission, while the Public-Private Partnership Authority Act will be repealed and the P3A dissolved. The bill outlines the commission's authority to advise on, appraise, structure, facilitate, and monitor PPP projects, as well as create and manage the viability gap fund, PPP project development facility, and public contribution fund.

The proposed law will empower the commission to establish PPP nodes within government agencies, handle disputes, and provide a process for settling below-threshold projects. All PPP agreements between public and private parties will be public documents, accessible to interested parties, and the government and commission will not be held liable for risks not specified in the agreements. Existing contracts with the P3A will be transferred to the new commission without disadvantage to private parties.

The commission will have the power to request a list of all existing, proposed, and planned government projects, including potential PPP projects, within fifteen days, with compliance enforced by the commission chairman. Any non-compliance will result in referrals to the relevant ministries or divisions. Upon the dissolution of the P3A, all officers, consultants, advisers, auditors, employees, and staff will remain with the commission for either six months or until the end of their contracts, whichever occurs first, at terms and conditions not less favourable than their previous arrangements.