By Abdul Wajid Khan ISLAMABAD, Feb 22 (INP-Wealthpk) The federal government is currently trying to complete due legislative procedure for the formation of Federal Government Properties Management Authority (FGPMA) to protect the state-owned properties across the length and breadth of the country from encroachments and illegal occupation and to utilise them for generating optimum economic returns. The FGPMA will operate under the administrative control of the Ministry of Finance. The government has already introduced the Federal Government Properties Management Authority Bill, 2021 in the National Assembly. The bill is currently under consideration of the National Assembly Standing Committee on Finance and it is expected that the committee will green-light it in its upcoming meeting. Advisor to the Prime Minister on Finance Shaukat Tarin has also directed the officials concerned to complete the process as soon as possible to fully operationalise the FGPMA for efficient utilisation of the federal government’s assets. According to the statement of objects and reasons of the bill, a copy of which is available with INP-WealthPk, the federal government owns a vast tract of urban and rural property throughout the country. These fixed assets are owned, operated and managed by the federal ministries, divisions and organisations. 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. In fact, these are beset with multiple problems like encroachments, illegal occupation, etc. Despite government directions, most of these assets are not being utilised in an economically viable manner. In various cases, even the superior courts have issued similar directions. “There have been several unsuccessful attempts in the past to make use of some of these properties to generate optimum economic returns. Managing assets, especially land, is a specialised function. None of the existing government organisations have exclusive mandate and capacity to perform this function in a manner where these properties generate valuable returns for the economy. Such functions are required to be performed by a dedicated professional agency or organisation. It is therefore proposed that a new organisation, the FGPMA, may be established to own, manage, operate or lease properties of the federal government as approved by the federal government”, according to the bill. The main function of the Authority shall be to create a database of assets owned by various government entities, take possession of any asset transferred to the Authority, carry out marketing and promotion of assets, lease, purchase, procure, exchange, mortgage, rent out or otherwise utilise any transferred asset. Under the bill, the government may assign to the Authority any project involving private investment in any form whatsoever and at any stage of a project lifecycle. The affairs of the Authority will be managed through a board of governors including four members from the private sector, four ex-officio members to be appointed by the government and director general, while the minister in charge of the Finance Ministry would be the chairman of the board. The Authority shall create a database of assets owned by various government entities, recommend to the government such assets to be transferred to the Authority for investment, take possession of any transferred asset, undertake all legal measures to secure assets handed over to the Authority, and identify government assets suitable for development of projects, according to the bill. All acts and proceedings of the Authority shall be subject to the control of the government and the government may revoke, suspend or modify any such acts or proceedings. The Authority will undertake all legal measures to secure assets handed over to it and will design and approve transaction structures for offering the assets for projects. The Authority will recommend to the federal, provincial or local governments policies, laws and actions to enhance the investment potential of assets. It will prepare, amend and approve development plans, master plans or site plans of any asset including spatial or town planning, infrastructure development, land use and building control regulations in consonance with the existing building and town planning regulatory dispensation. The Authority will appoint legal experts, contract management specialists, procurement specialists and other kind of experts to represent it in litigation, contract negotiations and contract management. All litigations with respect to the transferred assets shall be deemed to be transferred to the Authority on the date the property is taken possession of. The headquarters of the Authority shall be at Islamabad and it may with the prior approval of the government set up as many offices all over the country as when and where required.