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Regulatory bodies under concerned ministries

June 12, 2017

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Regulatory bodies under concerned ministries

Mohammad JamilbyMohammad Jamil
June 12, 2017
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Mohammad Jamil


According to the notification of 6th June 2017, Federal Government has placed five Regulatory Bodies under concerned ministries. The regulatory bodies are: National Electric Power Regulatory Authority (NEPRA), Pakistan Telecommunication Authority (PTA), Frequency Allocation Board (FAB), Oil and Gas Regulatory Authority (OGRA) and Public Procurement Regulatory Authority (PPRA). Similar attempt was made in December 2016, in which Administrative Control of same five Regulatory Bodies was placed under concerned Ministries, but this time around complete control has been given to the ministries concerned. Earlier decision of Federal Government was challenged in Lahore High Court and Islamabad High Court by Civil Society and the same was suspended by Lahore High Court in February 2017 on the plea that Prime Minister issued notification without approval of the Council of Common Interest (CCI).
It has to be mentioned that KPK and Sindh governments had opposed the decision of the federal government. Since consensus is required in the CCI, the decision of the government could lead to the confrontation between the provinces and the federal government. Apart from that, Islamabad High Court also set aside the decision in March 2017 on same ground that decision needs approval from Council of Common Interest (CCI). Regulators are considered as independent bodies to ensure a strict check on functioning of concerned Government Ministries in order to safeguard common man’s interests in particular and society’s interests in general. As per Rules of Business, 1973, Regulatory Bodies had been placed under Cabinet Division to ensure neutrality and impartiality. These Regulatory Bodies under the concerned ministries means that they will operate without any accountability and will manipulate the decisions of the Regulatory Bodies to politically influence them.
There is a perception that federal government decision will provide it a maneuvering space in managing a lot of funds for preparation of next election. Common man’s interests will no more be protected under new arrangement. Federal Government’s current decision is complete violation of Lahore High Court and Islamabad High Court decisions, which poses a serious challenge to the authority of Honourable High Courts. The decision of Federal Government also negates the democratic norms by completely ignoring people’s rights. The said decision will also give a clear message by simply paralyzing the functionality of different Government departments including Council of Common Interest (CCI). It is worth mentioning that institutions like PTA and Frequency Allocation Board (FAB) are security-wise very sensitive and by politicizing such departments would have negative effects. Therefore, the decision must be reverted back to show respect to the judiciary, as strong institutes could ensure the stability of the country.
These regulatory bodies were given under the cabinet division by various governments in the past to ensure that they enjoyed independence in decision-making instead of being subservient to the ministries for routine administrative issues like approval of leave, visits abroad and appointments. According to sources, the decision was the result of the resistance two key regulators Nepra and Ogra in implementing directives of the relevant ministries on matters of public interest, particularly tariff issues. The subject of transfer of administrative control of the regulators was first put on the agenda of the December 16, 2016 meeting of the Council of Common Interests (CCI) but was opposed in writing by the Khyber Pakhtunkhwa chief minister who said the critical matter of public importance, having far-reaching consequences for his province, should not be decided upon in haste and should be withdrawn from the agenda.
Privatization of national assets also requires the consent of the CCI. In June 2007, the then prime minister Shaukat Aziz while talking to a group of reporters at the PM house had said that government would honour the Supreme Court verdict in Pakistan Steel Mills case and ensure its implementation. The government had moved really fast, as within few days of the short order by the apex court halting the process of privatization of Pakistan Steel Mills had directed the federal government to expeditiously constitute the CCI but not later than six weeks. It was unfortunate that in the past even elected governments did not give importance to the Council of Common Interests it deserved. Formation of the CCI was a constitutional requirement and meant to guarantee the rights of the provinces, or to resolve any disagreement between them and the federation.
The PPP’s manifesto had stood for provincial autonomy and formation of the CCI. Late Mohtarama Benazir Bhutto twice formed the government from 1988 to 1996, but the CCI was not formed. Mian Nawaz Sharif in his second stint as Prime Minister constituted the CCI, but in its very first meeting the decision to privatize the Pakistan Steel Mills was taken. In addition to implementing the provisions of provincial autonomy, the formation of CCI is important with a view to eliminating the sense of alienation amongst the smaller federating units. It goes without saying that national assets belong to the federation, and since Pakistan is federation comprising four federating units – the co-owners of these national assets – no asset should be sold without their prior consent. It, therefore, follows that no government has the right to sell or privatize anything that is owned by the federation without obtaining prior approval by the CCI.

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