ISLAMABAD: The government is trying to functionalise at the earliest the Federal Government Properties Management Authority (FGPMA) that would be tasked with the recovery of prime federal government properties all over the country and eventually ensure their disposal to generate funds.

The government had introduced an ordinance in August this year under a cabinet decision in July to set up the FGPMA to deal with the properties of the federal government, federal ministries and allied departments located all over the country for their better utilisation. A bill to provide permanent legal cover to the authority has also been introduced in the National Assembly and pending clearance by the National Assembly’s Standing Committee on Finance and Revenue.

Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin had a meeting to review the establishment of FGPMA that was also attended by Senator Aon Abbas Buppi. The meeting was informed that an official notification for the establishment of FGPMA had been issued.

However, Mr Tarin noted that notification alone was not enough and directed to make the entity fully functional at the earliest for best utilisation of government’s assets and for getting best value for money for the government assets. He also directed the relevant officials to complete the codal modalities as soon as possible.

New entity would be empowered to manage assets through private investments

In July, the cabinet had approved the formation of FGPMA to dispose of federal government properties worth trillions of rupees which were presently under encroachment or not in any use.

While introducing a bill in the national assembly for setting up of FGPMA in September, the government has explained that the government owned vast tract of urban and rural property throughout the length and breadth of the country. These fixed assets are owned, operated and managed by the federal ministries, divisions and organisations under their control and many of these lands have gained in value over time due to expansion of urban areas and growth of commercial activities.

“However, most of the government entities have not been able to manage these assets optimally and many of them are beset with multiple problems like encroachment, illegal occupation etc,” read the statement of objects and reasons of the bill.

There have been several unsuccessful attempts in the past to make use of some of the properties for generating optimum economic returns because managing assets particularly land was a specialised function that none of the government organisations like Pakistan Railways have the mandate and capacity to perform this function in a manner that generate valuable returns. Hence, the professional and dedicated entity — FGPMA — to own, manage, operate or lease properties of the federal government.

The new entity, to be based in Islamabad, would be empowered to effectively manage and utilise these assets through attracting private investment, from local and abroad to undertake special projects and generate revenues, facilitate job creation, develop human resource and enhance exports and bolster economic growth and service delivery.

It will take over and create a database of assets owned by government entities, conduct anti-encroachment operations and take possession of any government asset.

The government will constitute a Board of Governors of the FGPMA including four members from the private sector, four ex-officio members to be appointed by the government, the director general of the FGPMA while minister in charge of the Finance Ministry would be the chairman of the board.

It will be a body corporate having a Director General, who would be the principal accounting officer of the authority. The DG would be responsible for management, administration and operations of the entity. The government may assign to the authority any project including private investment in any form whatsoever and at any stage of project lifecycle.

“No suit, prosecution or other legal proceedings shall lie against any person for anything which is done in good faith or intended to be done including acts of omission and commission,” unless with prior approval of its board of governors. Also “no court shall in any case pass an order affecting any anti-encroachment operation by the FGPMA,” the bill explained. The FGPMA can cancel or re-plan any project and mortgage assets with the approval of the federal government.

Published in Dawn, November 18th, 2021