The Privatisation and Public-Private Partnership Commission would become the single institution responsible for both asset sales and infrastructure partnerships under a bill that the government has introduced in the National Assembly. The legislation proposes merging the existing Public-Private Partnership Authority (P3A) with the Privatisation Commission, and the government says the change is intended to prevent duplication of institutional functions and processes.
Why the Government Wants One Institution
The bill seeks amendments to two separate legal instruments: the Privatisation Commission Ordinance 2000 and the Public Private Partnership Authority Act 2017. The government argues that the ordinance deals with the privatisation of state-owned enterprises under official policy, while the 2017 act governs a separate body. Both frameworks, it says, concern mobilising private capital and expertise for public assets, infrastructure and services, and running them through two institutions has meant overlapping work.
For that reason, the government has described a single institutional framework as a policy necessity. The bill would reconstitute the Privatisation Commission under its new name, repeal the 2017 act and dissolve the P3A. The proposal follows earlier official plans, reported in May, to move the P3A out of the Planning Division and place it under the Privatisation Division.
Structure and Powers of the Proposed Commission
Under the draft, the commission would be led by the incumbent chairman, Muhammad Ali. Its board would have a majority of independent members, including people with public-private partnership experience and at least two women directors. The bill also provides for fixed terms of office and clear grounds for disqualification and removal.
The commission would administer four public funds: a privatisation fund, a public contributory fund, a viability gap fund and project development funds for partnerships. These would be financed through budget allocations, receipts from international lenders, investment income or other sources, and all would be non-lapsable.
Its functions would include advising on, appraising, structuring, facilitating and monitoring partnership projects. The draft sets out a legal framework covering the contractual basis for agreements, a federal project pipeline, the approval process, a risk management unit and transaction execution committees. It also allows the commission to set up partnership nodes inside government agencies, to settle disputes and to adopt an alternative process for projects below a set threshold.
The public contribution fund could be used to meet government obligations tied to a project, such as land acquisition, site handover and right of way.
Transparency, Agencies and Existing Contracts
The bill states that a partnership agreement between public and private parties would be a public document, and any interested person could obtain a copy subject to applicable laws. It also says the government, the commission or an agency would not be liable for a private party’s claim over a risk not specified in the agreement. All contracts already signed by the P3A would transfer to the new body without disadvantage to the private parties.
Government agencies would face a new reporting duty. The commission could require any agency to submit, within 15 days, a complete list of its existing, proposed and planned projects, whether or not they are identified as partnership projects. If an agency failed to comply, the chairman could refer the matter to the ministry or division concerned. A committee would review projects proposed for the federal pipeline and send its recommendations to the board.
Staff of the P3A would be retained by the commission for six months or until their contracts expire, whichever comes first, on terms no less favourable than before the dissolution.
Immunity for Officials Draws Attention
One of the most notable provisions concerns immunity for officials. The bill offers legal and investigation protection to current and former chairmen, secretaries, board members, officials and consultants for acts or omissions carried out in good faith and in a personal capacity. It also commits public funds to contest any such cases. Provisions of this kind often prompt questions in parliament about accountability, particularly when they apply retroactively to former office-holders, and the bill will have to pass through the legislature before any of it takes effect.
Privatisation and Public-Private Partnership Commission: What Happens Next
The proposal is at an early stage. The National Assembly must consider it, and committee review would normally precede any vote. Lawmakers are likely to examine how the merged body will balance a private-sector majority on its board with the oversight of four public funds, and whether the immunity clauses are justified. If enacted, the Privatisation and Public-Private Partnership Commission would mark a significant restructuring of how Pakistan manages asset sales and partnership projects.
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