Privatisation essential for progress: Mansha

[ziaulislam]

Privatisation essential for progress: Mansha
By Shahram Haq
Published: March 8, 2015
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Leading businessman stresses importance of entrepreneurship. CREATIVE COMMONS

LAHORE:
Putting his weight behind the privatisation process, business giant Mian Mansha expressed his support for privately-owned businesses.

“Privatisation of state-owned corporations is the only way to put the economy on track as it’s not the government’s job to run businesses.

“Successful governments always have a minimum role and a smaller cabinets, it’s not the job of a government to run railways and other such corporations — it should be privatised,” Mansha said while interacting with young entrepreneurs at a seminar organised by Entrepreneur Organisation, Lahore Chapter on Saturday.

Mansha, who has been criticised on several occasions over his pro-privatisation stance, strongly backed privatisation of the power sector as he believed that losses are reaching alarming levels, posing threats to businesses.

“The losses of Water and Power Development Authority are equal to our defence expenditures, in such circumstances how will the economy of Pakistan grow. The power sector needs to be privatised,” he added.

Projecting optimism, Mansha believed the country is moving in the direction of prosperity. “No matter which government is in place, things would be lot more different and positive after three years.”

Mansha claimed that the region would become the next engine of growth of the world due to its geographic location and huge population.

According to Mansha, it is important to explore changing trends in business and explore new avenues of investments.

He stressed on developing the hospitality industry of Pakistan, converting the mountains and hill stations in the north into profitable ventures.

“I am very optimistic about the future of this region, which will be an epicenter of the world economy and people from America and Europe will line up outside of our embassies to travel to Pakistan,” Mansha said.

“We are also expecting relations with India to improve, it is strange that at a distance of a 20-minute drive across the border from Lahore, prices of medicines are 40% less than they are here.

Mansha believed that entrepreneurs are required to create more jobs. “We cannot beat terrorism without creating jobs. Terrorism and unemployment go hand in hand, we should adopt an entrepreneur culture to create jobs and eliminate terrorism,” Mansha added.

Published in The Express Tribune, March 8th, 2015.

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[Bouncer]

“The losses of Water and Power Development Authority are equal to our defence expenditures, in such circumstances how will the economy of Pakistan grow. The power sector needs to be privatised,” he added.

Can anyone pl verify this statement? Doesn't seem to be true.

 

[SBD-3]

Can anyone pl verify this statement? Doesn't seem to be true.

500 billion worth of Circular debt due to theft and non-payment plus ~100 billion worth of line losses. He is roughly right. A simple solution can solve this I.e. Privatizing DESCOs or handing then over to their respective provincial governments. Btw neither the investors nor the provincial governments would be interested in acquiring DESCOs of Sindh, Balochistan and KPK. Hell even privatize the PEPCO after strengthening the capabilities of the regulator I.e. NEPRA.

One more thing that solely the circular debt roughly equates the combined loses originating from all PSEs.

 

[ziaulislam]

Can anyone pl verify this statement? Doesn't seem to be true.

its true. simply look at the budget.

500 billion worth of Circular debt due to theft and non-payment plus ~100 billion worth of line losses. He is roughly right. A simple solution can solve this I.e. Privatizing DESCOs or handing then over to their respective provincial governments. Btw neither the investors nor the provincial governments would be interested in acquiring DESCOs of Sindh, Balochistan and KPK. Hell even privatize the PEPCO after strengthening the capabilities of the regulator I.e. NEPRA.

One more thing that solely the circular debt roughly equates the combined loses originating from all PSEs.

we also forget to put gas sector in power lossess. if we add that than its another 200 billion rupees,
AT 10% WHICH ABOVE RECOMMENDED 1%. REMEMBER THIS HAPPENED IN LAST DECADE WE WENT FROM 1 TO 10% DUE TO FACT THAT PEOPLE STARTED TO STEAL AND USE IT FOR GENERATORS AND POWER PRODUCTION

PESHAWAR, Jan 10: The country is losing $2 billion annually owing to gas transmission and distribution losses triggered by poor governance and lack of an apt policy framework, according to Consumer Rights Commission of Pakistan (CRCP).

“This figure is based on the Planning Commission’s own data and could be easily verified if someone looks in it with some detail,” said Asif Mehmood, CRCP project manager, while making a presentation at a policy dialogue titled ‘Natural gas governance initiative -- Pakistan’ here on Thursday.

Gas transmission losses cost Pakistan $2 billion annually - Newspaper - DAWN.COM

SO Actually power sector losses are probably more than defense expenditure!

solution is simple
short term measures
1. use asian bank loan of 1.3 billion dollars to reforms power distribution companies via smart meters
2. get back over 300 billion rupees from industrial sector of punjab and sindh that are not paying due to political reasons
3. distribute gas based upon efficiencies to large producers and small cap producers on efficency(if needed at all), not family ties.

medium term
privatize,
invest in thar coal

long term

hydro, hydro, hydro
invest in bhasha



According to World Bank Logistic Performance Index Pakistan ranked 71 out of 155 countries in 2012 whereas India ranked 46 and Malaysia 59. The higher ranked countries in the index are those that have been investing more in areas such as efficiency of the customs clearance process, quality of trade and transport-related infrastructure, ease of arranging competitively priced shipments, competence and quality of logistics services, ability to track and trace consignments and frequency with which shipments reach the consignee within the scheduled or expected time.

 

[SBD-3]

its true. simply look at the budget.


we also forget to put gas sector in power lossess. if we add that than its another 200 billion rupees,
AT 10% WHICH ABOVE RECOMMENDED 1%. REMEMBER THIS HAPPENED IN LAST DECADE WE WENT FROM 1 TO 10% DUE TO FACT THAT PEOPLE STARTED TO STEAL AND USE IT FOR GENERATORS AND POWER PRODUCTION

PESHAWAR, Jan 10: The country is losing $2 billion annually owing to gas transmission and distribution losses triggered by poor governance and lack of an apt policy framework, according to Consumer Rights Commission of Pakistan (CRCP).

“This figure is based on the Planning Commission’s own data and could be easily verified if someone looks in it with some detail,” said Asif Mehmood, CRCP project manager, while making a presentation at a policy dialogue titled ‘Natural gas governance initiative -- Pakistan’ here on Thursday.

Gas transmission losses cost Pakistan $2 billion annually - Newspaper - DAWN.COM

SO Actually power sector losses are probably more than defense expenditure!

solution is simple
short term measures
1. use asian bank loan of 1.3 billion dollars to reforms power distribution companies via smart meters
2. get back over 300 billion rupees from industrial sector of punjab and sindh that are not paying due to political reasons
3. distribute gas based upon efficiencies to large producers and small cap producers on efficency(if needed at all), not family ties.

medium term
privatize,
invest in thar coal

long term

hydro, hydro, hydro
invest in bhasha



According to World Bank Logistic Performance Index Pakistan ranked 71 out of 155 countries in 2012 whereas India ranked 46 and Malaysia 59. The higher ranked countries in the index are those that have been investing more in areas such as efficiency of the customs clearance process, quality of trade and transport-related infrastructure, ease of arranging competitively priced shipments, competence and quality of logistics services, ability to track and trace consignments and frequency with which shipments reach the consignee within the scheduled or expected time.

Industrial sector clocks the highest collection figure throught the country. Please have a check at the collection stats available on DESCO websites.