The government has proposed merging Pakistan’s Privatisation Commission and Public-Private Partnership Authority (P3A) into a single body, which will oversee the sale or transfer of state assets and private-sector projects involving public services and infrastructure.
The bill, introduced in the National Assembly, will create the Privatization and Public-Private Partnership Commission (PPPPC). It seeks to amend the Privatization Commission Ordinance 2000 and repeal the Public-Private Partnership Authority Act 2017, dissolving the existing P3A.
For the public, the proposed changes could affect how infrastructure and service projects are approved, funded and monitored. The new commission could advise on and assess public-private partnership (PPP) projects, help structure transactions, and monitor their progress.
The government says bringing the functions under one institution would reduce duplication and make transactions more efficient. The incumbent Privatization Commission chairman, Muhammad Ali, would lead the proposed commission, and its board would have a private-sector majority, including at least two women. Members would have fixed terms, with stated grounds for disqualification and removal.
Public funds could meet government obligations
The commission would administer four funds: the privatisation fund, public contribution fund, viability gap fund and PPP project development fund. The bill proposes that these funds could receive money from the federal budget, international lenders, investment income and other sources. They would be non-lapsable, meaning unspent amounts would not automatically expire at the end of a financial year.
The public contribution fund could be used to meet government obligations connected with PPP projects. These may include acquiring land, handing over project sites and providing rights of way.
The bill also proposes a federal pipeline for PPP projects, an approval process, a risk management unit and committees to oversee project transactions. Government agencies could be directed to provide complete details of existing, planned and proposed projects within 15 days, including projects not formally identified as PPPs.
Contracts to be made public; immunity provisions included
Under the proposal, PPP agreements between public and private parties would be public documents, and interested people could request copies, subject to applicable laws. The government, commission and relevant agencies would not be liable for private-party claims over risks that were not specified in an agreement.
Existing contracts signed by the P3A would transfer to the new commission, without disadvantage to the private parties, according to the bill.
The draft also provides legal and investigation immunity to current and former chairmen, secretaries, board members, officials and consultants for actions or omissions carried out in good faith and in a personal capacity. It further commits public funds to contest cases brought against them under these provisions.
If enacted, staff and consultants of the P3A would be retained by the new commission for up to six months or until their contracts expire, whichever comes first, on terms no less favourable than those they currently have.
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