One of the judges in 9 member bench hearing a constitutional petition against the PSM privatization opined that privatization of state owned strategic entities is against universal law and only non strategic consumer units should be given to private investors. He also said that though the courts did not make policies, they had the mandate to adjudicate whether privatization policies were in the national interest and based on honest principle and that rules and regulations were followed throughout the privatization process and cited an example from Turkey where a court intervened in a privatization case.

Barrister Zafarullah Khan lead counsel for the petitioners submitted that the successful bidder was given various concessions, which were neither mentioned in the terms of reference nor in the advertisement seeking expression of interest. He told the court that an assessment report on the PSM privatization was submitted on March 30 of this year and the deal was finalized the very next day. This undue haste is malafide and shows that the entire transaction plan was pre planned. Mr Khan also said that the PSM board was dissolved on February 3 because it was unlikely to approve the privatization at a lower price and a new board was formed on March 7, which approved the PSM privatization on March 10.

Lawyer Abdul Mujeeb Pirzada, council for the PSM Employees Union, submitted to the court that constitutional provisions and rules were flagrantly violated in the PSM privatization and the entire transaction seemed crooked and malafide.

The case has been adjourned for Thursday.