Details of properties to be submitted to Cabinet

MUSHTAQ GHUMMAN

ISLAMABAD: The Priva-tisation Division is all set to submit the details of properties of Ministries/Divisions to the Cabinet of which at least three properties/assets, free from all encumbrances, will be sold aimed at spending the income on the concerned ministries, well-informed sources told Business Recorder.

On March 7, 2019, the Privatisation Division informed the Cabinet that in compliance with the Prime Minister’s Office directives of February 19, 2019, it had so far received information from 45 Ministries/ Divisions/organisations whereas response from the remaining two was still awaited.

It was briefed that in pursuance of subsequent Cabinet’s decision in its meeting held on February 28, 2019, a meeting of the assets management committee, headed by Minister for Maritime Affairs was held on March 5, 2019. During the meeting the following decisions were made: (i) the committee approved unanimously the framework devised by the Privatisation Division to deal with the issue;(ii) all the Ministries/Divisions may be directed to provide details of at least three properties/assets, free from all encumbrances along with requisite information to PC; and (iii) on receipt of complete information, Privatisation Commission will share timelines with the committee in its next meeting.

The cabinet was further informed that in pursuance of the Cabinet’s decision on February 28, 2019, Privatisation Division had been tasked to establish an Asset management Cell for disposal of identified properties, free from all encumbrances by the concerned Ministries/Divisions. In this regard, following structure would be required to put in place in the Privatisation Commission: (i) Director General-to be hired on deputation basis from CDA/Housing & Works/Federal Land Commission etc; (ii) Director (Real Estate) – to be hired on deputation basis from CDA/Housing &Works/Federal Land Commission etc; (iii) Deputy Director (Real Estate) – to be hired on deputation basis from CDA/Housing & Works/Federal Land Commission; (iv) Consultant( Real Estate)(02)- to be hired from open market ( process already initiated); (v) Legal Advisor (real estate) - in house arrangement; and (vi) supporting staff - Technical Assistant (03), LDC(02)- in house arrangement.

It was further briefed that the Ministries/Division will provide following n to proceed further to identify/earmark in clear terms three potential properties/assets, free from all encumbrances, which can be made available for disposal/alternative use to private sector.

The Ministries/Divisions have also been directed to undertake due diligence including, applicability of local by –laws, tentative value, purpose of use, clean and clear title documents, possession, status, any litigation issues etc and any other information deemed necessary.

It was also informed that on receipt of required information from concerned Ministries/Divisions, the committee after due scrutiny, will recommend the properties free from all encumbrances for disposal to Privatisation Commission/Cabinet.

Subsequently, the Privatisation Commission will initiate necessary steps for disposal i.e. valuation of the properties from reputed valuators enlisted in category A maintained by the State Bank of Pakistan, following due process as outlined below: (i) valuation of identified/recommended properties/assets to establish reference price for disposal; (ii) approval of reference price by competent forum i.e. Privatisation Commission Board/CCoP/Cabinet; (iii) invitation of bids from interested parties as per PPRA Rules; (iv) evaluation of bidding process by the committee; (v) final approval for sale proceeds by competent forum, ie, PC Board/CCoP/Cabinet; and (vi) final closure.

The Cabinet took notice of the presentation made by the Privatisation Division and decided that all Ministries/Divisions will identify three properties each, free from encumbrances having clear documents of the properties for the purpose of their disposal. The Ministries/Division had been directed to shares such information with Privatisation Division by March 12, 2019.

Privatisation Division will present the details of such properties received from Ministries/Divisions in the next Cabinet meeting. The Privatisation Division will also prepare a list of 100 precious properties, with legal possession issues or other encumbrances and discuss the matter with the Attorney General.

The Cabinet further directed Establishment Division to provide the required resources to the Privatisation Division.

A fix percentage of proceeds from the privatisation of the assets/property will be utilized in the relevant Division to improve its hard and soft infrastructure.