On July 21, in what is seen as a desperate move, Pakistan’s cabinet under Prime Minister Shehbaz Sharif approved an ordinance named Governmental Commercial Transactions Ordinance 2022 to bypass all procedures to sell government assets to foreign countries. The step has been taken to prevent the country from defaulting on loans. Pakistan’s President Arif Alvi is yet to sign the ordinance.
Reports suggest that the ordinance would also allow the government to skip regulatory checks, including six relevant laws named the Companies Act, 2017, Privatisation Commission Ordinance, 2000, Public Procurement Regulatory Authority Ordinance, 2002, Public-Private Partnership Authority Act, 2017, Securities and Exchange Commission of Pakistan Act, 1997, Securities Act, 2015 or any other law to approve the sale.
The Express Tribune reported that with this ordinance, the government would be able to sell the land meant for the two LNG-fired power plants to a foreign country. The machinery installed at the plants will be included in the sale. Through this ordinance, the government will be empowered to issue binding instructions to the governments of the provinces for land acquisition. The ordinance also barred the courts from entertaining any petitions against the sale of government assets, including land, companies etc., to foreign countries.
The government is planning to sell stakes in oil and gas companies along with government-owned power plants to the United Arab Emirates. It will help Pakistan to raise $2 billion to $2.5 billion. Notably, in May, UAE refused to provide cash deposits to Islamabad as the country had failed to return the previous loans. Instead, Pakistan asked UAE to establish its businesses for investments.
Furthermore, the International Monetary Fund (IMF) has also placed a condition on the neighbouring country that its case would be taken by the board only if Pakistan managed to raise $4 from friendly countries. Meanwhile, the value of the Pakistani Rupee is falling at a stagnant rate. In the last week, it has fallen by 8.3 per cent, the steepest fall since November 1998.
The Express Tribune further added that a Cabinet Committee on the Inter-Governmental Commercial Transactions would be formed once the ordinance is passed. With the ordinance, the government will be immense power to control land at any location in the country and sell it to a foreign state. Neither court nor any investigation agency will be able to challenge the sale. However, according to experts in Pakistan, the court will not accept such clauses.
As per reports, such conditions and the price discovery mechanism to be used according to the ordinance will result in controversies as there will be an absence of transparency.
Imran Khan objected to the ordinance
Former Prime Minister Imran Khan has raised serious objections over the ordinance. As the reports of the ordinance being passed by the Pakistani cabinet broke, the former PM took on Twitter and lashed out at the government.
Calling the current regime an “imported government”, he said, “How can imported government brought to power through US conspiracy, led by crime minister, who’s family along with (PPP Co-Chairman Asif Ali) Zardari have volumes written on their corruption, be trusted with the sale of national assets (and) that too (through) bypassing all procedural (and) legal checks.”
These ppl have been plundering Pak for last 30 yrs & are now responsible for the present economic meltdown. These thieves should never be allowed to sell our national assets in the devious manner they are attempting. The nation will never trust them with our national assets.
— Imran Khan (@ImranKhanPTI) July 23, 2022
He further accused the government of plundering Pakistan for the last 30 years and the present economic crisis. He said, “These thieves should never be allowed to sell our national assets in the devious manner they are attempting. The nation will never trust them with our national assets.”
PM Shehbaz alleged Khan had suffered a memory loss and gave him a few “reminders”. He said, “One, as per Transparency International report, corruption increased during his rule. Even transfers/postings were on sale in addition to big scams. Two, the people are paying the price of how he mismanaged the economy.” In the third point, he accused Khan of deeply hurting the global prestige of Pakistan and its relations with “friendly” countries.
Three, Imran Niazi deeply hurt the global prestige & standing of the country & its relations with friendly countries. Four, he has lost a sense of balance in his lust for power, which is evidenced by his habitual recourse to lies, propaganda & blatant twisting of facts.
— Shehbaz Sharif (@CMShehbaz) July 23, 2022
He added, “Four, he has lost a sense of balance in his lust for power, which is evidenced by his habitual recourse to lies, propaganda [and] blatant twisting of facts.”
