• Thursday, May 23, 2019

Mere disinvestments

Discussion in 'Pakistan Economy' started by Abdussamad, May 15, 2019.

  1. Abdussamad

    Abdussamad BANNED

    Messages:
    566
    Joined:
    Feb 21, 2009
    Ratings:
    +0 / 208 / -2
    Country:
    Pakistan
    Location:
    Pakistan
    This article on The News talks about how the privatization of various engineering companies in the past led to deindustrialization. Due to corruption the companies were sold for a song and the people purchasing them bought them for their real estate rather than to actually run the companies as businesses. Most of the companies failed to operate successfully in the private sector.

    There may be more reasons for these companies' failure than the author talks about. Perhaps foreign competition was one factor.

    The author concludes by advising against further privatization:

     
    • Thanks Thanks x 1
  2. Khafee

    Khafee PROFESSIONAL

    Messages:
    6,208
    Joined:
    Oct 9, 2015
    Ratings:
    +43 / 20,204 / -0
    Country:
    United Arab Emirates
    Location:
    Saudi Arabia
    Asset stripping is a tactic, that can be detrimental to a nations economy & industrial base
     
    • Thanks Thanks x 4
  3. zulu

    zulu FULL MEMBER

    Messages:
    1,214
    Joined:
    May 13, 2011
    Ratings:
    +6 / 1,733 / -0
    Country:
    Pakistan
    Location:
    Turkey
    It is dear @Khafee but if done with proper planning and clear objective through clean process.Reviving in loss/sick/closed industry never easy but hamary yahan tu privatization ky naam par bandar bant chalti hai.kabhi ek old story sunaoo gaa MCB ki mian mansha ko by Mian nawaz Sharif old hai par gold hai mian sahib purany chor hain waisy bhi :)
     
    • Thanks Thanks x 2
  4. Baburfromsarmarkand

    Baburfromsarmarkand FULL MEMBER

    New Recruit

    Messages:
    18
    Joined:
    May 12, 2019
    Ratings:
    +0 / 13 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    Government has no profit incentive. They get free money via budgets. So they go through the motions. A private firm must earn its bread. Private will always out compete public.
     
    • Thanks Thanks x 1
  5. Samlee

    Samlee SENIOR MEMBER

    Messages:
    4,161
    Joined:
    Aug 8, 2010
    Ratings:
    +5 / 5,009 / -0
    Country:
    Pakistan
    Location:
    Pakistan

    Yes Privatization Resulted In The Closure Of Many Profit Making SOEs
    Like Zealpak Cement and Metropolitn Steel Also Pakistan Textile Machine Company Spinning Machine Company Among Others.

    Another Of The Great Achievements Of Nawaz SHarif:hitwall::hitwall::hitwall:
     
    • Thanks Thanks x 1
  6. valkyr_96

    valkyr_96 FULL MEMBER

    Messages:
    1,108
    Joined:
    Apr 19, 2010
    Ratings:
    +0 / 720 / -0
    That is basically one avenue of distressed asset investing and the fast cheapest and most profitable given the penny on the dollar acquisition. Turnaround is time consuming and investment demanding. Pakistan lacks entrepreneurship and we are too focused on short term FDI...foregoing its long term effects.
     
    • Thanks Thanks x 2