The federal government has introduced legislation in the National Assembly to establish a new Privatisation and Public-Private Partnership Commission by merging two existing institutions. The proposed move aims to eliminate overlapping responsibilities and create a unified system for privatisation and public-private partnership projects.
The proposed Privatisation and Public-Private Partnership Commission (PPPPC) would replace the existing Privatisation Commission and the Public-Private Partnership Authority (P3A). The bill seeks amendments to the Privatisation Commission Ordinance 2000 and the Public-Private Partnership Authority Act 2017. It also proposes repealing the 2017 law and dissolving the P3A.
Under the proposed legislation, the new commission would be headed by incumbent Privatisation Commission Chairman Muhammad Ali. Its board would have a majority of private-sector representatives, including at least two women directors. Members would serve fixed terms and face clearly defined criteria for disqualification and removal.
The government believes that merging the two institutions would improve efficiency by bringing privatisation and public-private partnership transactions under a single administrative framework. Both bodies currently deal with mobilising private investment and expertise for public assets, infrastructure and services, but operate under separate legal arrangements.
The proposed commission would oversee the planning, assessment, structuring, facilitation and monitoring of public-private partnership projects. It would also manage several public funds, including the privatisation fund, public contribution fund, viability gap fund and PPP project development fund.
These funds could receive money from the federal budget, international lenders, investment returns and other sources. The legislation proposes making the funds non-lapsable, allowing their balances to remain available beyond the end of a financial year.
The bill also outlines a comprehensive framework for public-private partnership agreements, project approvals, risk management and transaction execution. It provides for the development of a federal PPP project pipeline and the establishment of dedicated PPP units within government agencies.
Under the proposed arrangement, the commission could require government agencies to submit complete details of their existing, proposed and planned projects within 15 days. The requirement would also cover projects under consideration or development, regardless of whether they had already been identified as public-private partnerships. Agencies would be required to provide accurate and complete information.
A committee would review potential projects proposed for inclusion in the federal PPP pipeline and submit recommendations to the commission’s board for consideration and decisions.
The legislation further allows the public contribution fund to cover government obligations associated with PPP projects. These could include land acquisition, handing over project sites, securing rights of way and other measures necessary to facilitate implementation.
Public-private partnership agreements would be treated as public documents, with interested individuals entitled to obtain copies in accordance with applicable laws. The bill also states that the government, the commission and relevant government agencies would not be held liable for private-party claims relating to risks not specified in the agreements.
Existing contracts signed by the P3A would be transferred to the new commission without placing private parties at a disadvantage. The proposed law also provides for the retention of P3A employees, consultants, advisers, auditors and other staff for six months after the authority’s dissolution or until their existing contracts expire, whichever comes first. Their terms and conditions would not be less favourable than those in place immediately before the authority’s dissolution.
However, the proposed legislation has also raised questions over provisions granting legal and investigative immunity to serving and former officials. The bill seeks protection for current and former chairmen, secretaries, board members, officials and consultants against acts or omissions undertaken in good faith and in their personal capacity. It also proposes using public funds to contest related cases.
If approved, the legislation would establish a centralised institutional framework for privatisation and public-private partnerships, consolidating responsibilities that are currently divided between two separate bodies.
