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International media: WSJ acknowledges Pakistan’s privatisation vision
By APP
Published: January 25, 2014
ISLAMABAD: Wall Street Journal has acknowledged Prime Minister Nawaz Sharif’s vision to privatise Pakistan’s state-dominated failing enterprises and hopes that it will help the country overcome its economic crisis.
The paper stated that Sharif has the opportunity to deliver on a long standing promise of privatisation, after the country’s first transition from one elected government to another.
The paper mentioned the 49% rise in Pakistan’s benchmark stock index in 2013, and expressed belief that more economic good news will follow this year, if Sharif delivers on his privatisation promise.
In a write-up on its opinion page, ‘Pakistan Privatises for Growth’, Sharif’s chance to reform a state-dominated economy stated that though Pakistan faced numerous problems — from terrorism and lawless territories to power shortages and polio, privatising ‘state-owned dinosaurs’ was not the sole solution.
“But the sooner Islamabad can stop hemorrhaging Rs500 billion (nearly $5 billion) annually on budgets, subsidies and bailouts for failing enterprises, the better,” the paper said.
Spurred by a $6.6 billion loan from the International Monetary Fund, Sharif’s government in September 2013 committed to begin the privatisation process of more than 30 public energy, transport and infrastructure corporations over the three years.
These include Pakistan State Oil, Pakistan International Airlines and Pakistan Steel Mills. The process was being led by a 15-member privatisation commission headed by Mohammad Zubair, formerly IBM’s chief financial officer for the Middle East and Africa.
The paper hoped that the process will move forward with the expertise and political independence; starting with partial privatisation of Pakistan International Airlines by December.
The paper, however, mentioned that Sharif’s reforms will still face resistance from organised labor and Pakistan’s two major opposition parties.
Published in The Express Tribune, January 25th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
***********************************************
Pakistan Privatizes for Growth
Nawaz Sharif's chance to reform a state-dominated economy.
Updated Jan. 23, 2014 10:42 p.m. ET
From India to Bangladesh to Afghanistan, much of South Asia this year will be focused on elections and uncertain, sometimes violent transfers of power. An exception is Pakistan, where Prime Minister Nawaz Sharif took office last summer in the country's first transition from one elected government to another. This year Mr. Sharif has the opportunity to deliver on a longstanding promise to privatize Pakistan's state-dominated and inefficient economy.
Pakistan's problems are legion, from terrorism and lawless territories to power shortages and polio. Privatizing state-owned dinosaurs isn't the sole solution, but the sooner Islamabad can stop hemorrhaging 500 billion rupees (nearly $5 billion) annually on budgets, subsidies and bailouts for failing enterprises, the better.
IBM's IBM -1.69% chief financial officer for the Middle East and Africa. Mr. Zubair should have the expertise and political independence to push his mandate aggressively, starting with the partial privatization of Pakistan International Airlines by December.
Reform prospects further improved last month when Supreme Court Chief Justice Iftikhar Chaudhry reached retirement age and left the bench, ending a career distinguished by aggressive interventions in politics. In 2006 he blocked the privatization of Pakistan Steel Mills, arguing that the government wanted to sell the enterprise for less than its true value.
That helped lead to a showdown with then President Pervez Musharraf, who tried to banish the chief justice from power but ended up provoking a popular backlash that cost him the presidency in 2008. Reinstated in 2009, Mr. Chaudhry became more aggressive, reliably quashing or deterring government attempts to cut subsidies or reform state-owned enterprises.
Even assuming a less powerful and more business-friendly high court, Mr. Sharif's reforms will still face resistance from organized labor and Pakistan's two major opposition parties. "We are against privatization 100 percent. This is not privatization, this is personalization," says Pakistan People's Party chief Bilawal Bhutto Zardari, who accuses Mr. Sharif of plotting to enrich his fellow industrialists.
Overcoming such opposition will be a challenge, but the prime minister has the bully pulpit and economic arguments that can resonate. In September, Gallup Pakistan found 70% of the population in favor of privatizing Pakistan International Airlines.
Mr. Sharif also has to reassure investors that if they bid on properties their ownership rights will be protected. One cause of continuing concern is the unresolved spat between the Pakistani government and Etisalat, the United Arab Emirates' largest telecom firm, over payments from a 2005 privatization. Resolving that dispute could help make future privatization tenders more appealing.
Little noticed amid headlines about terrorist horrors and slowed economic growth, Pakistan's benchmark stock index rose 49% in 2013. More economic good news will likely follow this year if Mr. Sharif can deliver on his privatization promise.
Review & Outlook: Pakistan Privatizes for Growth - WSJ.com
By APP
Published: January 25, 2014
ISLAMABAD: Wall Street Journal has acknowledged Prime Minister Nawaz Sharif’s vision to privatise Pakistan’s state-dominated failing enterprises and hopes that it will help the country overcome its economic crisis.
The paper stated that Sharif has the opportunity to deliver on a long standing promise of privatisation, after the country’s first transition from one elected government to another.
The paper mentioned the 49% rise in Pakistan’s benchmark stock index in 2013, and expressed belief that more economic good news will follow this year, if Sharif delivers on his privatisation promise.
In a write-up on its opinion page, ‘Pakistan Privatises for Growth’, Sharif’s chance to reform a state-dominated economy stated that though Pakistan faced numerous problems — from terrorism and lawless territories to power shortages and polio, privatising ‘state-owned dinosaurs’ was not the sole solution.
“But the sooner Islamabad can stop hemorrhaging Rs500 billion (nearly $5 billion) annually on budgets, subsidies and bailouts for failing enterprises, the better,” the paper said.
Spurred by a $6.6 billion loan from the International Monetary Fund, Sharif’s government in September 2013 committed to begin the privatisation process of more than 30 public energy, transport and infrastructure corporations over the three years.
These include Pakistan State Oil, Pakistan International Airlines and Pakistan Steel Mills. The process was being led by a 15-member privatisation commission headed by Mohammad Zubair, formerly IBM’s chief financial officer for the Middle East and Africa.
The paper hoped that the process will move forward with the expertise and political independence; starting with partial privatisation of Pakistan International Airlines by December.
The paper, however, mentioned that Sharif’s reforms will still face resistance from organised labor and Pakistan’s two major opposition parties.
Published in The Express Tribune, January 25th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
***********************************************
Pakistan Privatizes for Growth
Nawaz Sharif's chance to reform a state-dominated economy.
Updated Jan. 23, 2014 10:42 p.m. ET
From India to Bangladesh to Afghanistan, much of South Asia this year will be focused on elections and uncertain, sometimes violent transfers of power. An exception is Pakistan, where Prime Minister Nawaz Sharif took office last summer in the country's first transition from one elected government to another. This year Mr. Sharif has the opportunity to deliver on a longstanding promise to privatize Pakistan's state-dominated and inefficient economy.
Pakistan's problems are legion, from terrorism and lawless territories to power shortages and polio. Privatizing state-owned dinosaurs isn't the sole solution, but the sooner Islamabad can stop hemorrhaging 500 billion rupees (nearly $5 billion) annually on budgets, subsidies and bailouts for failing enterprises, the better.
IBM's IBM -1.69% chief financial officer for the Middle East and Africa. Mr. Zubair should have the expertise and political independence to push his mandate aggressively, starting with the partial privatization of Pakistan International Airlines by December.
Reform prospects further improved last month when Supreme Court Chief Justice Iftikhar Chaudhry reached retirement age and left the bench, ending a career distinguished by aggressive interventions in politics. In 2006 he blocked the privatization of Pakistan Steel Mills, arguing that the government wanted to sell the enterprise for less than its true value.
That helped lead to a showdown with then President Pervez Musharraf, who tried to banish the chief justice from power but ended up provoking a popular backlash that cost him the presidency in 2008. Reinstated in 2009, Mr. Chaudhry became more aggressive, reliably quashing or deterring government attempts to cut subsidies or reform state-owned enterprises.
Even assuming a less powerful and more business-friendly high court, Mr. Sharif's reforms will still face resistance from organized labor and Pakistan's two major opposition parties. "We are against privatization 100 percent. This is not privatization, this is personalization," says Pakistan People's Party chief Bilawal Bhutto Zardari, who accuses Mr. Sharif of plotting to enrich his fellow industrialists.
Overcoming such opposition will be a challenge, but the prime minister has the bully pulpit and economic arguments that can resonate. In September, Gallup Pakistan found 70% of the population in favor of privatizing Pakistan International Airlines.
Mr. Sharif also has to reassure investors that if they bid on properties their ownership rights will be protected. One cause of continuing concern is the unresolved spat between the Pakistani government and Etisalat, the United Arab Emirates' largest telecom firm, over payments from a 2005 privatization. Resolving that dispute could help make future privatization tenders more appealing.
Little noticed amid headlines about terrorist horrors and slowed economic growth, Pakistan's benchmark stock index rose 49% in 2013. More economic good news will likely follow this year if Mr. Sharif can deliver on his privatization promise.
Review & Outlook: Pakistan Privatizes for Growth - WSJ.com
