Syeda Mazhar
On the grounds of government failure, privatization and deregulation policies are being practiced almost everywhere in the hope that they would help in efficient allocation of resources and higher levels of productivity. Considerable regulatory reforms have also been affected in Pakistan over the last two decades. Also highlighted that, Pakistan’s economy has operated in an environment in which there is very weak enforcement of the rules, allowing large vested interests to have virtually unimpeded sway in crucial decisions that can have far-reaching consequences for the economy, and the larger public interest.
Privatization in a competitive framework generally results in higher efficiency levels, but in the case of unregulated natural monopolies it is not necessarily so. However, if such industries are properly and effectively regulated, they would also show higher efficiency levels. Unfortunately, in the developing countries legislation relating to competition is either non-existent and/or the rules and guidelines for competition are implemented poorly. It needs to be underscored that access to information is the key factor for better regulation, but that is rather poor in developing countries like, Pakistan.
Just recently, Federal Government has placed Government functioning of five regulatory bodies namely, 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) under concerned ministries vide a notification issued on June 6th, 2017.
It is thought that an efficient regulatory regime can play an important part to ensure good governance as well as rule of law in any country. Regulatory bodies are generally established by the government primarily to ensure the smooth and transparent dispensation of its general administration. Regulatory body essentially performs two functions- formulating the specific standards and austere enforcement of these standards.
However, post observation, instead of ensuring an efficient regulatory regime in the country, these bodies have often been found involved in various controversies and huge financial scams. The State Bank of Pakistan, being a monetary regulator responsible for the formulation and enforcement of monetary policy in the country but, now it seems to be lacking an independent regulatory vision, working alongside with the Ministry of Finance. The National Electric Power Regulatory Authority (NEPRA) and Oil and Gas Regulatory Authority (OGRA) are two important energy sector regulators in Pakistan. In fact, both have failed to regulate the energy sector effectively and efficiently so far. Both regulators have yet not been quite able to ensure smooth supply of energy and evolve a transparent price fixing mechanism in Pakistan.
Speculating the consequences of the government’s decision to place the Regulatory Bodies under the concerned ministries means that the ministries will operate without any accountability and will manipulate the decisions of the Regulatory Bodies. Additionally, the Federal government will be able to politically influence these Regulatory Bodies for their own financial and political gains. Federal Government’s current decision is in complete violation of Lahore High Court and Islamabad High court decisions, which poses a serious challenge to the authority of Honorable High Courts. This decision will provide a maneuvering space to the Government in managing oa lot of funds for preparation of next election at their own free will.
Under the new arrangement, common man’s interests will no more be protected. Current decision of Federal Government shows the disrespect to the democratic norms by completely ignoring people’s right by the government, which was put in place by the people’s choice in ballot. Placing these Regulatory Bodies under the concerned ministries means, Ministries will operate without any accountability and the manipulation of the decisions of the Regulatory Bodies will be extremely prevalent. Similarly, the political influence on these Regulatory Bodies of their own Financial and political gains would be easy and without accountability.
This decision of the Federal Government was challenged in Lahore High Court and Islamabad High Court by the Civil Society for the said concerns and was suspended in the February of 2017 as well, on the plight of the Prime Minister who issued the notification without the approval of the Council of Common Interest, to protect the common man’s concerns in the regime.
The decision also challenges the functionality of Council of Common Interest as well as other Government departments. It is mandatory for the Federal Government to acknowledge and maintain the respect and honor of the judiciary as a strong institute. Institutions like PTA and Frequency Allocation Board (FAB) are security wise very sensitive and by politicizing such departments the chances of corruption increase ten-folds.
The decision, which is also in a violation of the recent orders of the Lahore High Court and the Islamabad High Court, poses a serious challenge to the authority of the courts but also is in an utter violation of the constitution as the Council of Common Interests (CCI) has been bypassed. The decision has attracted critique by experts and PILDAT, a parliamentary democracy watchdog. Critics say that regulators act as independent watchdogs over the functions of the ministries and their placement under the respective ministries would tantamount to be a mere joke with the constitution.
