KARACHI: The Sindh High Court (SHC) on Tuesday issued notices to the ministries of law, aviation and finance and others on a petition filed against the proposed privatisation of Pakistan International Airlines Corporation.

A two-judge bench, headed by acting Chief Justice Aqeel Ahmed Abbasi, also put the deputy attorney general on notice for Dec 21 and directed respondents to file replies before the next hearing.

Citing secretaries of the three ministries as well as executive director of Ernest & Young, the firm reportedly being hired as financial adviser for the privatisation, as respondents, regular litigant Samira Mahamadi asked the SHC to declare the proposed privatisation ultra vires to the Constitution.

The petitioner contended that only an elected government could take major policy decisions and all actions taken by the caretaker setup for privatisation of the PIAC be decaled null and void and without lawful authority.

Law, aviation and finance ministries directed to file replies before next hearing

The bench in its order noted that the petitioner, who claimed to be a a citizen, has filed the petition in public interest.

She has expressed concerns and grievances against the process of privatisation of PIA initiated by the caretaker government, which authority, according to the petitioner, is not vested in terms of Section 230 of the Election Act, 2017, even after its amendment in the Pakistan International Airlines Corporation (Conversion) Act, 2023.

The bench further noted that as per the petitioner, the PIAC Act, 2023, provided that sub-sections 1 and 2 of Section 230 of Elections Act shall not apply where the caretaker government has to take actions or decisions regarding existing bilateral or multilateral agreements or the projects already initiated under the Public Private Partnership Authority Act, 2017, the Inter-Government Commercial Transac­tions Act, 2022, and the Pri­vatisation Commission Ordinance, 2000, in respect of the privatisation of PIAC, which was a public limited company.

The petitioner also impugned the vires of the amendment in Section 3(3) of the PIAC (Conversion) Act, 2016, whereby “the federal government may, during the validity period and by notification in official gazette, issue fresh shares or cancel any shares as it may deem fit”. She asserted such amendment was made in violation of the company law, which authority was not vested with the government whereas the impugned amendment has also been made to facilitate the privatisation of PIAC.

The bench in its order also said: “It has been further argued by the petitioner that since the PIA is not a state-owned asset as it was now a public limited, therefore, the federal government is not empowered to privatise such company in violation of law.”

“Contention raised requires consideration. Let pre-admission notice be issued to the respondents as well as DAG to be served through first three modes for 21.12.2023 to be taken up at 12:00 noon, when reply/comments, if any, shall be filed with advance copy to the petitioner,” the order concluded.

Published in Dawn, December 6th, 2023