Law: Sindh Privatization Commission Ordinance, (XXV of 2001)

Section: 23, 24, 5

(a) Privatization Commission Ordinance (LII of 2000)---

----Ss.23 & 24---Privatization (Modes and Procedure) Rules, 2001, R.3--Privatization Commission (Hiring of Financial Advisors) Regulations, 2018, Regln. 3---Privatization Commission (Confidentiality and Secrecy of Documents) Regulations, 2003, Regln. 3---Pakistan International Airlines Corporation (Conversion) Act (XV of 2016), S. 3---Constitution of Pakistan, Arts.173 and 199--Privatization procedure of Pakistan International Airlines Corporation Limited, challenge to---Notice of intent to commence privatization and valuation of assets--Requirements---The petitioner filed 'pro bono publico' writ petition challenging the privatization process of Pakistan International Airlines Corporation Limited (PIACL), alleging non-compliance with the mandatory provisions of Ss. 23 & 24 of the Privatization Commission Ordinance, 2000, inasmuch as no lawful advertisement of intent was issued nor proper valuation of assets was undertaken, thereby rendering the entire exercise arbitrary, non-transparent, and violative of the fundamental right to information under Article 19-A of the Constitution---Nub of the matter was the determination as to "whether the process of privatization undertaken by the Privatization Commission was in conformity with Ss. 23 & 24 of the Ordinance 2000 and the Rules and Regulations framed thereunder or whether the same was tainted with arbitrariness, procedural impropriety or lack of lawful authority"---Held: There was no doubt that failure to comply with the procedural requirements of S. 23 of the Ordinance 2000 would have rendered the privatization process legally defective and open to judicial review---Bare reading of Ss. 23 of the Ordinance 2000read with S. 5(o) of the Ordinance 2000 made it abundantly clear that it was the duty of the Privatization Commission to invite open applications for the purpose of privatization, after consultation with the Federal Government, for making the process transparent and competitive by preventing favoritism and ensuring fair competition---It was evident from the record that the required newspaper advertisements were published in national newspapers "Daily Express", "Daily Jang" (Urdu Newspapers) and "Dawn" and "Business Recorder" (English Newspapers) on 02.04.2025---Notice of invitation was also got published in international dailies "Financial Times" (03.04.2024), "China Daily" (02.04.2024) and "The Wall Street Journal" (02.04.2024) by the Commission---The said advertisement was also got published on 15.04.2025 with at least thirteen days gap on "Daily Express", "Daily Jang" (Urdu Newspapers) and "Dawn" and "Business Recorder" (English Newspapers)---In this view of the matter, the record demonstrated that advertisement of privatization of the "PIACL" was issued in consultation with the concerned enterprise in accordance with requirement of the S. 23 of the Ordinance 2000---Moreover, the issuance of a formal valuation report was a condition precedent for the progression of the privatization process which ensured that the Commission, bidders, and the public were fully aware of the independently assessed value of the asset being privatized---It was evident from the notice of advertisements that the Privatization Commission had appointed EY Consulting LLC, as the Financial Advisor along with other consortium members to conduct the transaction---If S. 24 of the Ordinance 2000 was read with S. 23 of the Ordinance 2000 along with Ss. 5(o) & 5(p) of the Ordinance 2000, it transpired that Privatization Commission was empowered to evaluate the bids against the criteria fixed by it---Record was indicative of the fact that the Privatization Commission had appointed EY Consulting LLC, as the Financial Advisor to conduct the transaction in the prescribed manner after seeking proper approval from the Cabinet and hence this requirement was also fully met with by the respondents--Privatization Commission had duly conducted the process of privatization as per Ss. 23 & 24 of the Ordinance 2000---Regarding application of the petitioner seeking summoning and production of record pertaining to assets, valuation reports and financial particulars of PIACL regarding process of privatization, such request could not be entertained given the fact that such documents were confidential under Regln. 3 of the Privatization Commission (Confidentiality and Secrecy of Documents) Regulations, 2003---The process of privatization was strictly followed as per prescribed criteria, therefore, present petition was dismissed, in circumstances.

(b) Competition Act (XIX of 2010)---

----Ss. 3, 11 & 12---Privatization Commission Ordinance (LII of 2000), Ss.23 & 24---Privatization of Pakistan International Airlines Corporation Limited (the PIACL)---Competition Commission of Pakistan---Role, object and scope---In the privatization of the "PIACL"the role of Competition Commission of Pakistan (the CCP)is both pivotal and exemplary, reflecting its statutory mandate as an independent, quasi-judicial regulatory authority established under S. 3 of the Competition Act of 2010---The CCP's involvement in the acquisition of 100% shareholding of the PIACL by PIA Holding Company Limited (Holdco) underscores its critical function in scrutinizing mergers and acquisitions to prevent any appreciable adverse effect on competition within relevant markets.