Pakistani court sends notices to government ministries against
proposed PIA privatization
The Sindh High Court (SHC) took action on Tuesday by issuing
notices to various government ministries, including law, aviation, and finance,
in response to a petition challenging the proposed privatization of the
Pakistan International Airlines Corporation (PIAC).
The two-judge bench, led by Acting Chief Justice Aqeel Ahmed
Abbasi, also summoned the deputy attorney general to appear on December 21 and
instructed the concerned parties to submit their responses before the next hearing.
Committee
established to expedite privatization of Pakistan International Airlines (PIA)
The petitioner, Samira Mahamadi, a regular litigant, named
secretaries of the three ministries and the executive director of Ernest &
Young, the firm reportedly selected as the financial adviser for the
privatization, as respondents. Mahamadi urged the SHC to declare the proposed
privatization as ultra vires to the Constitution, arguing that major policy
decisions should only be made by an elected government. She further requested
the court to declare all actions taken by the caretaker setup for the
privatization of PIAC null and void, emphasizing the lack of lawful authority.
The SHC bench acknowledged the petitioner's claims filed in the
public interest, expressing concerns about the privatization process initiated
by the caretaker government. Mahamadi contended that the caretaker government
lacked the authority to make decisions regarding the privatization of PIAC,
citing Section 230 of the Election Act, 2017. The bench noted the petitioner's
argument that the PIAC Act, 2023, exempted certain provisions of the Elections
Act in the case of caretaker government actions related to existing agreements
and projects.
World
Bank consults with Pakistani government on PIA privatization strategy
Additionally, the petitioner challenged the validity of the
amendment in Section 3(3) of the PIAC (Conversion) Act, 2016, asserting that it
was made in violation of company law and was intended to facilitate PIAC's
privatization. The bench deemed these contentions worthy of consideration and
issued pre-admission notices to the respondents and the Deputy Attorney
General, directing them to submit replies by December 21, 2023, for further
evaluation.
Source: Dawn