Power quest continues
Power corrupts. Absolute power corrupts absolutely. The PMLN government in its quest to fully empower ministries is compromising the true independence of regulatory institutions. The government, especially in the power sector, is virtually assuming the role of the private sector as majority of mega projects are to be run by the public sector. In the process, regulatory institutions’ prudence was not letting them meet tough deadlines; and today the power of regulators is somehow crippled to make them subservient to relative ministries.
What kind of good governance model is this? Earlier this week, PM Nawaz Sharif transferred the administrative control of five regulatory bodies to the respective ministries. These bodies include National Electric Power Regulatory Authority (NEPRA), Oil and Gas Regulatory Authority (OGRA), Pakistan Telecommunication Authority (PTA), Frequency Allocation Board (FAB), and Public Procurement Regulatory Authority (PPRA).
The apparent model is that either the government has ‘yes man’ in key regulatory bodies or simply trim the wings of authorities. In the SBP, the top two men may not have the best resumes for the positions they hold; but their loyalty to the regime is paramount. Same is the case with both the SECP and CCP. On the flip, NEPRA was hard to handle by ministry of water and power; and the latter has strict deadlines for making upcoming projects online before the elections. Hence, NEPRA is now reporting to the ministry.
It is like dragging the country back by two decades. Yes, Musharraf was an authoritative leader and had done a few harms to derail key political and judiciary institutions; but credit goes to him for instilling and nourishing key economic regulatory institutions. And today, a democratically elected government with a heavy mandate with great chances of winning 2018 elections is in quest of authoritative power.
Isn’t it ironic? The question is why the government is so insecure. Lately, SECP all of a sudden came up with an ordinance to change the company ordinance, 1984. Many of the amendments in the ordinance were good; but what was the rush in bringing it? Why did it not go through the parliamentary process of approvals? And the ordinance was rightly rejected by the upper house.
Similarly, the decision of bringing the regulatory institutions under the administrative power of relevant ministries is not a 180 degree shift in power. As the government was already the supreme power in administrating these institutions. The power was with cabinet division and now it’s in respective ministries; but somehow the vibes are that the authority of regulators is compromised.
There are already a few institutions which are under the administrative power of relevant ministries like PEMRA and IRSA. The government officials are of the view that the step taken by PM is not like cutting the wings of regulatory authorities. Rather it’s shift of power from cabinet division to relevant minister to make swift decisions.
Well, that is true; but the factor of accountability usually diminishes with concentrated power structure. Pundits opine that regulators such as NEPRA were doing a good job.
The body was tough on ministry - cases like Nandipur cost overrun were not getting approvals and the body was critical on NTDC in its recent reports. And now with direct under reporting line of ministry of water and power; there is high chance that top officials in ministry would influence NEPRA decisions.
Conflict of interest is not good. The layers of power with independent regulatory regime keep power hubs accountable. That is the right recipe of broad based economic development and social uplift of a country that is long struggling to find its growth path. Underestimate the benefits of watchdog at your own peril!
