PESHAWAR, October 20: The Supreme Court of Pakistan has approved privatisation of 10% shares of the Oil and Gas Development Company Limited (OGDCL) and it has rejected an appeal of the Khyber Pakhtunkhwa government on the issue.
In a brief verdict, a three-member bench headed by PHC Chief Justice Nasirul Mulk stated that the federal government should complete the privatisation process in a transparent manner.
The provincial government of Khyber Pakhtunkhwa had submitted an application in the Supreme Court against the privatisation of OGDCL. It said half of the oil and gas reserves were located in KP and that the federal government should not privatise the department’s shares without prior will of the province.
The provincial government also gave the reference of 18th Amendment, according to which all the provinces are independent in dealing with the natural resources of their respective regions and the federal government has no right to sell out the provincial assets.
However, the federal government claimed it was at risk of losing hundreds of billions of rupees in this particular case and that if the Supreme Court declared the step unconstitutional, it might bear even more loss.
The Supreme Court has also sought details regarding the reservations of the provincial government over the issue.