Senate panel seeks halt to Discos privatisation, says matter must go to Council of Common Interests

ISLAMABAD: A Senate panel on Monday called for halting the privatisation of power distribution companies (Discos), directing the Privatisation Commission to place the matter before the Council of Common Interests (CCI) or face a privilege motion if it tries to bulldoze the process.

The Senate Sub-Committee on Devolution held a meeting under the chairmanship of Senator Zamir Hussain Ghumro. The meeting expressed serious reservations over the Privatisation Commission’s response that was sought by the committee over the latter’s decision to continue privatisation without fresh approval from the CCI.

“Discos are performing provincial functions which must either be legalised by seeking approval of provincial assemblies or transferred to provinces,” the committee observed.

It stressed that matters involving provinces must be placed before the CCI and that the process must be transparent, noting that the Steel Mills and Pakistan International Airlines (PIA) privatisation process had raised serious questions about transparency.

Senator Ghumro warned the Privatisation Commission to comply with earlier directions or face parliamentary action.

The meeting was attended by Senators Jan Muhammad Buledi and Poonjo Bheel, Information Minister Attaullah Tarar, secretaries of the cabinet and establishment divisions, and other senior officials.

The panel was reviewing compliance reports on devolution of subjects under the 18th Constitutional Amendment, the status of federal institutions dealing with provincial and CCI subjects and related matters.

It also reviewed compliance reports by the Permanent Secretariat of the CCI in pursuance of its meetings held on Aug 17 and Sept 8, as well as reports submitted by the Cabinet Division, Establishment Division and the Auditor General of Pakistan (AGP)/Controller General of Accounts (CGA) regarding ministries, attached departments, programmes, institutions, statutory bodies, corporations and companies retained by the federal government since 2011 in relation to provincial and CCI subjects.

Senator Ghumro said the sub-committee had directed that 24 ministries and organisations on provincial and CCI matters be abolished and federal expenditure be brought down from present Rs19 trillion to Rs13tr.

He said total tax and non-tax revenue of the country was Rs20tr whereas federal expenditure was almost Rs19 trillion, which was a cause of concern.

“There must be a constitutional audit of the federal government about its size and expenditure and it must be brought down drastically,” he said.

Senator Ghumro also expressed displeasure over non-receipt of agenda notice by the AGP and CGA, directing both to submit audited expenditure on ministries and organisations established on CCI and provincial matters by the CCI during the last 16 years, which, he said, could amount to trillions.

“Such unconstitutional expenditure cannot be allowed when the country is facing economic crisis. Not a penny shall be spent on devolved or CCI matters being handled by the federal government,” the sub-committee chairman asserted.

The panel was informed that a note on the matter had already been forwarded to Prime Minister Shehbaz Sharif. The cabinet secretary said the CCI was an important constitutional forum, much like the federal cabinet.

The committee also took up policing-related functions. Officials explained that policing was primarily a provincial subject, while the Police Service of Pakistan (PSP) had been retained under Article 240 of the Constitution.

Senator Ghumro, referring to the omission of Entry 16 of the erstwhile Concurrent List, said PSP could not be retained by the federal government. The Establishment Division was also asked to file comments within two weeks.

On devolution of media, the committee examined the report of the Information and Broadcasting Division concerning entrusting of broadcasting and telecasting functions to provinces under Article 159 and transfer of print media matters following their omission from the Concurrent List.

Tarar said existing rules and constitutional provisions would be examined. He requested one month to undertake consultations with provincial governments and develop models relating to devolution of media functions. The chairman directed that a comprehensive proposal be submitted within a month.

The committee also discussed broadcasting infrastructure and installation of transmitters, including requests from Balochistan and Punjab.

Furthermore, the panel reviewed a briefing by the Power Division and Thar Coal Energy Board on electricity generated from Thar coal, provision to local communities and environmental measures.

Officials said electricity from Thar coal was being supplied to the national grid and subsidy arrangements for consumers in Islamkot were being examined.

Senator Ghumro appreciated Sindh Chief Minister Murad Ali Shah, saying the Thar project — the dream of ex-PM Benazir Bhutto realised by the Sindh government — was a game changer as it added cheap electricity to the national grid.

However, Senator Bheel raised concerns over employment for the local population.

The convenor said PM Shehbaz must take action on matters raised, including abolishing ministries on provincial and CCI matters, as well as taking up matters of Part II of the Federal Legislative List in the CCI instead of the federal cabinet.

Under Article 154(1) of the Constitution, the CCI should formulate policies in relation to matters in Part II of the Federal Legislative List, which covers everything from the census to supervision and management of public debt, as well as railways, ports, electricity, oil and gas, national planning, and national economic coordination.

The Cabinet Division informed the sub-committee that matters mentioned in the minutes of the Aug 17 and Sept 8 meetings of the committee had been sent to the prime minister for action and compliance.