Framework and Organogram

Structure, Objectives Function & Members of Privatization Commission

Structure & Formation of Privatization Commission

To better implement the privatization programmes for benefiting the stakeholders, the Privatization Board was constituted on 20th March 1993 through an administrative ordinance. The privatization board kept on discharging its obligations until July 2000 as per the prescribed guidelines & policies. Later, Privatization Act was formulated on the 11th July 2000 basically to provide massive thrust to the ongoing privatization programs thereafter, privatization board was replaced by Privatization Commission on 30th July 2000. Below is the organogram of the Privatization Commission:

Organogram of Privatization Commission

Composition of Privatization Commission:-

The Privatization Commission shall comprise the following membership:-

(a)  A Chairman, of the rank and status of a State Minister who shall be appointed by the government
(b)  Six Members of the Parliament, who shall be nominated by the Leader of House.
(c)  Two full-time Members,to the rank & status of Secretary/Additional Secretary of the government.
(d)  Secretary, Ministry of Industries,Ex-Officio.
(e)  Secretary, Ministry of Commerce,Ex-Officio.
(f)  Secretary, Finance Division, Ministry of finance, Ex-Officio.
(g)  Secretary, Ministry of Textile,Ex-Officio.
(h)  Secretary, Ministry of Jute,Ex-Officio.
(i)  Chairman, Securities & Exchange Commission, Ex-officio
(j)  President, Federation of Bangladesh Chambers of Commerce & Industry, Ex-Officio.
(k)  One Representative nominated by the government from any professional organization, for two-years term.

6 Members of Parliament


		Member of Parliament - 6 (Vacant)

Ex-Officio Members


		Mr. Faruq Ahmad Siddiqi Chairman, Securities & Exchange Commission
		Dr. Md. Nurul Amin Secretary, Ministry of Industries
		Mr. Md. Abdur Rashid Sarker Secretary, Ministry of Jute & Textile
		Mr. Feroz Ahmed Secretary, Ministry of Commerce
		Dr. Mohammad Tareque Secretary-in-charge, Ministry of Finance
		Mr. Mir Nasir Hossain President Federation of Bangladesh Chambers of Commerce and Industries (FBCCI)
		Representative from a Professional Organization nominated by the Govt. for 2 years

2 Full Time Members


		Mr. Md. Abdus Sabur (Secretary to the Government) Member, Privatization Commission
		Mr. Khan M. Ibrahim Hossain (Secretary to the Government) Member, Privatization Commission

Objectives of Privatization The objectives of Privatizations are outlined below:- 1.0 Social welfare through efficiency gains Realising the growth and increasing role of private sector in Industrial, commercial and service enterprises in terms of their quality, quantity, management efficiency. Privatization of SOES assumed as a better solution to contribute to the expansion of existing units, GDP, increase in employment opportunities including other socio economic benefits.
2.0 Inflow of foreign investment, improvement of efficiencies & development of mutual ties. A well founded privatization program is better able to attract foreign investment having far reaching effects on management efficiency & technology.
3.0 Receipt of Revenue Minimising the financial pressure on the Government-exchequer, stimulating the proactive ness to face constraints to respond to the market demand due to obsolete machinery, poor productivity, poor management, cost ineffectiveness and under capacity utilization etc. and also to maximize productivity and revenue earnings from the sales proceeds of the products, privatization program sounds effective.
4.0 Diversification of the public sector resources from loss-making enterprises to other socially useful enterprises. Paradiem shift in reduction of continuous financial loss it is a crucial need to transfer the SOES to the private sector where efficiency and potential re-investment scope is available. It will immediately help the government to lighten the money burden and free to grant enormous subsidy to the losing sector. More over the privatization will assist the government to divert the fund to the socially useful projects like education, health service, Defense, social security and poverty alleviation.
5.0 Creation of employment opportunities and its protection through widespread competitiveness. Privatization is helpful to create more employment opportunities improving operational, production, management and plant utilization efficiency. It therefore, in the long run will tremendously be useful to create more employment opportunity and make substantial contribution to GDP.
Functions of Privatization Commission Below are the important functions of the Privatization Commission. The Commission is to:- (i) initiate all effective measures & steps necessary to implement of policies framed by the government for privatization. (ii) value the industrial or commercial units identified for privatization at current market price. (iii) check the accuracy of the price through intensive & extensive survey. (iv) design the terms of reference of the tender. (v) make necessary arrangements to float the tender & to short listing, analyzing and accepting the tenders. (vi) prepare statements of the past performance, production, trading, the future prospects of SOEs for the understanding of the bidders. (vii) discharge all functions relating to the transfer of the SOEs based on the accepted tender. (viii) provide suggestions from time to time to the government to modify, amend & review the privatization policy. (ix) review the progress of performance/achievement regularly & to get the government posted accordingly. (x) arrange seminar & symposium to create public awareness about privatization programs. (xi) provide post transfer service to the clients. (xii) provide counseling service to the investors.