KARACHI: PPP Senator Raza Rabbani has alleged that the PML-N government has ‘sold’ the country’s financial sovereignty and all economic decisions, even privatisation of strategic assets, are being taken as per dictates of the International Monetary Fund (IMF) for the sake of $1.1 billion tranche.

Addressing a press conference on Wednesday, he said there was no justification for privatisation of the Oil and Gas Development Company Ltd (OGDCL) which earned a profit of Rs90bn last year, but it appeared the government had become a victim of the international conspiracy aimed at taking control of oil reserves of Muslim countries.

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He said the government had claimed it was only divesting 10 per cent shares of the OGDCL and it could privatise 10 to 12pc shares next year, but according to the law anyone having 26pc shares could claim the company’s management.

Senator Rabbani said the disinvestment of 10pc shares was a violation of the Constitution, because after the passage of the 18th Amendment the provinces owned the OGDCL’s share and without taking them on board through the Council of Common Interests the federal government could not disinvest its shares.

PPP Senator Raza Rabbani says there is no justification for privatisation of the Oil and Gas Development Company Ltd which earned a profit of Rs90bn last year

He said the PPP had begun contacting labour unions throughout the country to challenge the ‘Mansha-isation’ of national institutions.

He accused the government of extending to its favourites in PIA all privileges and allowances, while ignoring others.

The PPP leader asked the government to desist from taking ‘anti-national’ and ‘anti-worker’ steps and said although his party was determined not to destabilise the democratic system it would not allow privatisation of national institutions and would exercise its constitutional right to stage a peaceful protest at every forum available.

He said there were reports that the government was considering mortgaging the Lahore-Islamabad Motorway to generate $500 million and another $1bn by issuing Sukuk bonds and selling 10pc OGDCL shares to meet the IMF conditions.

Mr Rabbani said the government had imposed equalisation charge of Rs1.5 per unit which would be shown as surcharge in electricity bills. It had also levied surcharges of 3 paisa and 52 paisa per unit, he said.

He said loadshedding was still continuing unabated across the country because measures were being taken only to meet the IMF conditions.

The PPP leader said the government planned to privatise 69 public sector enterprises, even though only 18 of them were either running in loss or operating at breakeven.

Seven of the loss-making organisations were Discos which even after privatisation would continue to receive subsidy just as the government had to pay Rs312bn subsidy to K-Electric.

Published in Dawn, November 6th , 2014