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Government of Pakistan |
S.R.O. (I)/2001. In exercise of powers conferred
by section 40 of the Privatisation Commission Ordinance, 2000 (LII of 2000),
read with sections 22 and 25 thereof, the Privatisation Commission, with the
approval of the Federal Government, hereby makes the following rules, namely
:-
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THE PRIVATISATION (MODES AND PROCEDURE) RULES, 2001 |
1. Short title and commencement. --- (1) These rules may be called the
Privatisation (Modes and Procedure) Rules, 2001.
(2) They shall come into force at once.
2. Definition. --- (1) In these rules, unless there is anything repugnant in
the subject or context :-
(a) "adviser" means an external adviser hired by the Commission with the
approval of the Board to advise on a particular privatisation process or any
other ancillary activity leading to privatisation;
(b) "negotiated sale process" means the negotiations between the Commission
and an interested party for the sale and transfer of the property to be
privatised where the conditions specified in sub rule (1) of rule 6 apply; and
(c) "Ordinance" means the Privatisation Commission Ordinance, 2000 (LII of
2000)
(2) All other terms and expressions used, but not defined in these rules,
shall have the same meanings as assigned to them in the Ordinance.
3. Manner and procedure for privatisation. --- (1) The manner for carrying out
the privatisation programme under section 22 of the Ordinance and the
procedure for modes of privatisation under section 25 thereof shall, if, and
to the extent, the Commission deems necessary, include
(a) legal, technical and financial due diligence of the property being
privatised in order to, inter alia,
(i) identify any obstacles to privatisation and suggest, where possible, ways
to remove them;
(ii) allow a fair and independent valuation of the property being privatised;
and
(iii) prepare a suitable information memorandum together with other marketing
instruments;
(b) pre-qualification of prospective bidders to evaluate, where a
privatisation requires it, that the prospective bidders are technically and
financially in a position to own, manage and operate the assets being
privatised;
(c) preparation of bid documents which shall include instructions to bidders
and proforma sale instruments and the bid documents shall include appropriate
disclaimers to protect the Federal Government, Commission and their respective
officers, employees, consultants and advisers in respect of the information
provided to the bidders;
(d) holding of pre-bid conferences to discuss concerns of prospective bidders;
(e) creation of an enabling environment; and
(f) carrying out of a bidding process.
(2) Subject to the terms of appointment of an adviser, where an adviser has
been appointed for the privatisation, it shall carry out or advise on any or
all of the steps specified in clauses (a) to (f) of sub - rule (1).
4. Approval or rejection of highest ranked bidder. --- (1) Save in the case of
a negotiated sale process, the Commission shall carry out a bidding process
which is suited to the needs of the privatisation with the objective of
selecting the highest ranked bidder amongst the bidders that he, -
(a) has satisfied the pre-qualification criteria determined by the Commission,
if required; and
(b) complied with instructions for bidding provided by the Commission to
bidders.
(2) Upon selection of a highest ranked bidder as specified in sub-rule (1),
the Board shall refer the matter for approval, or rejection of such highest
ranked bidder with full justification, to the Cabinet.
5. Additional modes of privatisation. --- In terms of clause (f) of section 25
of the Ordinance, there shall be the following additional modes of
privatisation namely:-
(a) public offering of shares other than through a stock exchange; and
(b) sale of shares, assets, business and property to a person that has a
pre-emptive right to acquire the same (or any part thereof) subject to
fulfillment of conditions attached to such rights.
6. Negotiated sale. --- (1) The Commission may adopt the negotiated sale
process for any of the modes of privatisation specified in section 25 of the
Ordinance and rule 5 of these rules, if -
(a) in the opinion of the Board, sufficient interest for a privatisation has
not been received;
(b) the Board has recommended to the Cabinet and the Cabinet has authorised
the Commission to initiate the negotiated sale process;
(c) the Board has approved the party or parties interested in purchasing the
property being privatised;
(d) a team for carrying out the negotiated sale process has been constituted
by the Board which shall include a representative from the Ministry under
whose jurisdiction the entity being privatized falls; and
(e) the Board has delegated full power to the negotiation team for carrying
out the negotiated sale process and defined the parameters for negotiation.
(2) On conclusion of the negotiated sale process, the terms and conditions of
the transfer of the property to be privatised to the interested party shall be
submitted to the Cabinet for consideration and approval.
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No. F. 11(1)L/PC/2000-P&C
Munir Ahmed
Director