The Government of Pakistan has introduced the Privatization Commission (Amendment) Bill 2024 to the National Assembly in a notable shift in the governance of privatization efforts.
The Privatization bill, now under review by the relevant standing committee, proposes transferring substantial powers from the federal cabinet to the Prime Minister.
Under the new Privatization Commission Amendment 2024, the Prime Minister will assume authority over determining the salaries and allowances of the Chairman and members of the Privatization Commission, a responsibility previously held by the federal cabinet. Furthermore, for the privatization of any entity, the commission will consult the Ministry of Privatization instead of the cabinet before proceeding with public advertisements.
This amendment significantly centralizes decision-making powers, placing more executive authority under the Prime Minister’s control.
The legislative change underscores a strategic shift in governance, aiming to streamline and possibly expedite the privatization process under direct executive oversight.
Read: Pakistan Supreme Court Revokes Order Against PIA Privatization
In October 2024, the government unveiled a comprehensive five-year privatization plan, targeting the privatization of 24 institutions across three phases.
The plan, approved by the federal cabinet and crafted by the Ministry of Privatization, outlines an ambitious schedule starting with 10 institutions in the first year, including high-profile assets like Pakistan International Airlines and the Roosevelt Hotel in New York.
The second phase involves 13 more institutions, including several major electric supply companies and power generation firms, with a timeline of over three years. The privatization strategy includes major entities like State Life Insurance and Pakistan Reinsurance Company.
The plan’s third phase will focus on privatizing one additional institution, completing the extensive privatization agenda set by the government.
