Govt formulates Privatisation Regulation '07

FE Team | Published: October 30, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The government has formulated 'privatisation regulation 2007' and it is expected to be approved soon by the Council of Advisers.
"The government has formulated the regulation to make privatisation process of State Owned Enterprises (SoEs) prompt and transparent," Abu Solaiman Chowdhury, chairman of PC, said at a seminar in the city Monday.
He said the government will also bring amendment to the existing laws of Privatisation Commission (PC) to reduce the losses incurred by the SoEs.
The seminar on 'Privatisation of SoEs and Public-Private Partnership in Public Undertakings' was organised by the Dhaka Chamber of Commerce and Industry (DCCI) with its president Hossain Khaled in the chair.
Discussants in the meeting urged the government to cancel the provision that allow participation of six members of parliament (MPs) to 17-member board of the PC to free the state-owned entity from political influence.
"We urge the government to include more representatives from private sector to the PC board and eliminate the provision on presence of MPs," DCCI president said.
DCCI president in his speech said the government should float tender for SoEs openly so that all investors can participate.
Transparency and consistency should be maintained in all matters of tendering and other issues, he said.
DCCI president also stressed the need for formulation of policy on public-private partnership as there is no specific policy yet in this connection.
He urged the government to offload cent percent shares of Rupali Bank on the stock exchanges instead of selling it to the foreign investors.
Apart from this, discussants urged the government to offload the shares of more SoEs to make them profitable and give local investors priority in privatisation process.
When asked after the seminar, PC chairman said the new regulations will make buyers feel encouraged to buy the SoEs.
The PC chairman said the main aim of the privatisation programme is to strengthen the total industrial base of the country through providing necessary incentive packages, post-transfer supportive regulatory arrangements.
Presenting keynote paper, Syed Jaglul Pasha, director of PC, said foreign direct investment inflow in Bangladesh marked a sharp decline in 2006 compared to the same period of the previous fiscal.
He stressed the need for contribution of the FBCCI, DCCI and trade bodies in policy formulation and networking to increase inflow of FDI.
Members of PC Mian Mustaq Ahmed and Nasir Uddin Ahmed and senior vice president and vice president of DCCI Shahjahan Khan and Alauddin Malik, among others, took part in the discussion.