The bill will provide for a mechanism to carry out a commercial transaction under an inter-governmental framework agreement
ISLAMABAD: The National Assembly on Monday passed “The Inter-Governmental Commercial Transactions Bill 2022” and “The Pakistan Tobacco Board (Amendment) Bill, 2022.”
The Inter-Governmental Commercial Transactions Bill, on becoming the Act of Parliament after it is passed by the Senate and signed by the President, is aimed at selling off state-owned enterprises to raise billions of rupees.
The bill, which was okayed by the federal cabinet last month, will provide for a mechanism to carry out a commercial transaction under an inter-governmental framework agreement to promote, attract and encourage foreign states for economic and business relations with Pakistan.
It will provide for the federal government to enter into a government-to-government (G2G) agreement with a foreign state for the purposes of legislation. Unless provided otherwise by the cabinet committee, a commercial agreement under the G2G agreement shall be negotiated and executed between the nominated entities of the federal government and the government of a foreign state.
In the case of an entity nominated by the government of a foreign state, that government shall have either shareholding or control of the entity. The federal government shall, by a notification in the official gazette, constitute a cabinet committee on inter-governmental commercial transactions.
The cabinet committee may authorise negotiations for a G2G agreement; constitute a negotiation committee for a G2G agreement or a commercial agreement, as the case may be, and approve a price discovery mechanism; recommend approval of the G2G agreement or a commercial agreement finalised by the negotiation committee; recommend for relaxations, exemptions, exclusions or concessions from regulatory compliance.
The committee will authorise fast track procurement of services of transaction advisers or consultants; and take decisions necessary for expeditious execution of the commercial transaction. The cabinet committee shall place the agreement before the federal government for approval.
The cabinet committee shall facilitate and supervise the commercial transactions under the ordinance and pass necessary directions for removal of hurdles or difficulties. The committee may co-opt any person as a member or may require attendance of any person by special invitation as it deems appropriate. No act, decision or proceedings of the cabinet committee shall be invalid by reason of absence, vacancy or defect in the constitution of the cabinet committee. The federal government may also issue necessary directions to the provincial governments, local governments or any agency or authority concerned for implementation of the objective of an inter-governmental agreement in land acquisition, rehabilitation, settlement, construction of roads to main highway and other measures.
The federal government, by a notification, may exempt the agreement from any regulatory compliance. No court shall entertain an application, petition or suit against any process or act undertaken or done, intended or purported to be undertaken or done under the ordinance.
No court shall grant an injunction or entertain any application for injunction against any process undertaken, intended or purported to be undertaken for a commercial transaction or agreement under the ordinance.