• Proposed legislation aims to merge Public-Private Partnership Authority and Privatisation Commission
• Seeks to provide immunity to incumbent, former chairmen, secretaries and other officials
ISLAMABAD: The government has introduced a bill in the National Assembly, for the establishment of a Privatisation and Public-Private Partnership Commission (PPPPC), by merging the existing Public-Private Partnership Authority (P3A) and Privatisation Commission, to prevent duplication of institutional functions and processes.
The proposed law that seeks amendments to both legal instruments — the Privatisation Commission Ordinance 2000 and Public Private Partnership Authority Act 2017 — also provides legal and investigation immunity to the current and all former chairmen, secretaries, board members, officials and consultants from any act of omission or commission in good faith and in personal capacity and commits public funds to contest any such cases.
The all-powerful commission will be led by the incumbent chairman Muhammad Ali and will comprise a majority of members from the private sector, including two women directors. It will collectively administer four public funds — privatisation fund, public contributory fund, viability gap fund and PPP project development funds — created through allocation in the federal budget, receipts from international lenders, income from investments or any other source.
The government claims that the PC Ordinance dealt with privatisation of SOEs under the government policy while P3A Act governed a separate body. Both frameworks were concerned with mobilising private sector capital and expertise in relation to public assets, infrastructure and services and their administration through two separate institutions entailed duplication of institutional functions and processes.
Therefore, the government’s policy decision was needed for establishing a single institutional framework and mechanism for carrying out privatisation and public private partnership transactions in an efficient manner. For this, it seeks to reconstitute the Privatisation Commission as the Privatisation and Public-Private Partnership Commission, to repeal the Public Private Partnership Authority Act 2017 and dissolve the P3A.
The bill provides for the reconstitution of the board with a majority of independent members, including members with public private partnership experience and at least two women, fixed terms of office and clear grounds for disqualification and removal. The bill also empowers the proposed reconstituted commission to conduct functions of advising on, appraising, structuring, facilitating and monitoring public private partnership projects and the establishment of the viability gap fund, the PPP project development facility, and the public contribution fund.
The draft claims that it provides a comprehensive legal framework for public private partnerships, including the contractual framework for PPP agreements, a federal PPP pipeline, the approval process, the risk management unit and PPP transaction execution committees. It also empowers the commission to set up PPP nodes within government agencies, settlement of disputes and an alternative process for below-threshold projects.
The proposed law enables the commission to utilise public contribution fund to meet any government obligations with respect to PPP projects, including land acquisition, site handover, right of way and any such other enabling actions as may be required in connection with the project. All these funds would be non-lapsable.
The PPP agreement between the public and private parties shall be a public document and any interested person shall be entitled to obtain its copy subject to applicable laws, and the government or the commission or the government agency shall not be held liable for any claim of the private party for a risk which is not specified in the PPP agreement. All existing contracts signed by P3A would stand transferred to the new commission without any disadvantage to the private parties.
The proposed law empowers the commission to require in writing from any government agency to submit a complete list of its existing, proposed and planned projects, including projects under consideration or development, whether or not identified as PPP projects within fifteen days. The agencies shall be obligated to comply with such a requirement with full accuracy and completeness. Where a government agency fails to comply with any such requirement, the PC chairman may refer the matter to the ministry or division concerned for compliance.
There will be a committee to review potential PPP projects proposed for inclusion in the federal PPP pipeline and shall provide its recommendations, which shall be placed before the board for consideration and decision.
All officers, consultants, advisers, auditors, employees and other staff of the P3A shall upon the dissolution of the P3A be retained by the commission for a period of six months or until the expiration of their respective contracts, whichever is earlier, on terms and conditions not less favourable than those applicable to them immediately before the dissolution.
Published in Dawn, October 26th, 2026