Privatisation of Steel Mills okayed

[Panther 57]

Sir, Steel Mills and PIA are white elephants to our economy they need to be sold out otherwise they will eat up your left over economy...

Privatization is okay if national firms are invited to buy the shares.

Privatisation is not the solution but depoliticizing is. If Indus, Air Blue and Shaheen can run in profit, with lesser fares then PIA then why not PIA. The day it is right sized and competent people are hired on merit. Problem will be solved. It has 26 aircraft and 284 captains and 287 first officers. We can well imagine what would be the scores on cabin crew and flight operations staff. Shaheen with 22 of aircraft is working with 25% of what PIA has.

 

[Pinnacle]

Privatisation is not the solution but depoliticizing is. If Indus, Air Blue and Shaheen can run in profit, with lesser fares then PIA then why not PIA. The day it is right sized and competent people are hired on merit. Problem will be solved. It has 26 aircraft and 284 captains and 287 first officers. We can well imagine what would be the scores on cabin crew and flight operations staff. Shaheen with 22 of aircraft is working with 25% of what PIA has.

Well its all about management, can u control bureaucracy??

 

[Bilal.]

Privatisation is not the solution but depoliticizing is. If Indus, Air Blue and Shaheen can run in profit, with lesser fares then PIA then why not PIA. The day it is right sized and competent people are hired on merit. Problem will be solved. It has 26 aircraft and 284 captains and 287 first officers. We can well imagine what would be the scores on cabin crew and flight operations staff. Shaheen with 22 of aircraft is working with 25% of what PIA has.

All examples you gave are private sector organisations. Keeping in view the ground reality of our country where governments can't help rewarding their people by employment in these corporations depoliticisation is just a dream. Just look at all the banks that were privatised in the 90s, they used to suck in tens of billions each year just like these organisations, now they are all profitable, contributing billions in taxes.

 

[Panther 57]

All examples you gave are private sector organisations. Keeping in view the ground reality of our country where governments can't help rewarding their people by employment in these corporations depoliticisation is just a dream. Just look at all the banks that were privatised in the 90s, they used to suck in tens of billions each year just like these organisations, now they are all profitable, contributing billions in taxes.

But privatisation is still not the solution. Because wealth of assets will be transferred to blue eyed against pea nuts, like MCB. Solution is good governance. If private sector can run each venture profitability then why not public sector. Fault lies in people in power corridors. It is just like nationalisation by Bhutto, where nationalisation and unionisation brought industry to a thumping halt. Once profitable private ventures, ran into loss. China has excelled even with communism and I guess progressed much better then capitalistic world. So it was not the fault of nationalisation but of the executors. If political element is taken out from all the public sector organisations and its professionals are hired to run it. It is matter of months not years that these could be put on right track.

Well its all about management, can u control bureaucracy??

Bureaucracy is the root cause of all the ills taking place in Pakistan, yet no one blames them. Illegal construction, chaotic roads, lengthy procedures, these are all gifts of bureaucracy. They come into these positions just to make money and TAIKA. They should be the first one to be reigned.

 

[Jazzbot]

Sir, Steel Mills and PIA are white elephants to our economy they need to be sold out otherwise they will eat up your left over economy...

Privatization is okay if national firms are invited to buy the shares.

Yes mate, similarly Metro Bus in Lahore is another white elephant, eating up our economy, no? Funny that on one hand govt is desperately starting projects like free laptops, youth schemes, yellow cabs, metro buses etc and on the other hand is equally desperate to sale these massive public assets? Don't you think the purpose for both project (which govt is privatizing and launching) is exactly same i.e. facilitate public?

This is not privatization, this is something else. Most of these assets will end up in hands of Mian Mansha, Riaz Malik or Ittefaq foundary and in next elections NS and SS will say, someone gifted them 80% shares of Pakistan Steel Mill..

By the way, have a look at this: defence.pk/threads/pak-government-decides-to-end-cheap-railway-facility.294881/
Is this the same privatization you are okay with?

 

[Yogi]

One can't stop Indians if they really wants it for example laxmi mittal's steel company is world's largest steel company and that's a foreign company not an India and its headquarter is outside India too OR one can register a company in Dubai and move into pak to acquire the companies.

My question is why stop Indian companies when they work in same set of environment and working conditions. It will benefit both of us.

Ya phir bandaro ki ladai main, billi ka fayda hoga.

Thats not at all true brthr, they hv already turned down over $2 billion investment in Thar Coal project by Laskhmi Mittal through a Dubai based consultant.

Wake up its Indo-Pak relations we r talking about that too strategic assets like Steel & Coal...

Thar coal: Pakistan turns down Indian businessman investment proposal – The Express Tribune

 

[Pinnacle]

Yes mate, similarly Metro Bus in Lahore is another white elephant, eating up our economy, no? Funny that on one hand govt is desperately starting projects like free laptops, youth schemes, yellow cabs, metro buses etc and on the other hand is equally desperate to sale these massive public assets? Don't you think the purpose for both project (which govt is privatizing and launching) is exactly same i.e. facilitate public?

This is not privatization, this is something else. Most of these assets will end up in hands of Mian Mansha, Riaz Malik or Ittefaq foundary and in next elections NS and SS will say, someone gifted them 80% shares of Pakistan Steel Mill..

By the way, have a look at this: defence.pk/threads/pak-government-decides-to-end-cheap-railway-facility.294881/
Is this the same privatization you are okay with?

you are right that these shares are going in the hands of Mian Mansha and Malik Riaz, but again there is the mismanagement by the bureaucrates and officers, They are corrupt and any government can not fully control them....
the main of loss is corruption and the ignorance of merit.

 

[Sugarcane]

It's strange that after loosing billions of money collected from mango men by imposing indirect taxes on their a$$es, people still supports Bhtto's ideology of raping economy --- no wonder "Har ghar se bhutto niklay ga" is still applicable even in educated class.

 

[niaz]

Here lies the basic fallacy, if private sector works why not public sector. In no country be it UK of the US, public sector works as efficiently as the private sector. Reason is simple.

If I don’t earn my keep, entrepreneur will fire me because he is losing money from his pocket. If a public sector employee doesn’t work no one bothers because it is public sector money and no one person suffers a loss. Only the services such as fire service, public health and education, which are not run for the sole purpose of profit work well within the gov’t. Even then in Pakistan there are ghost schools and ghost teachers. UK was forced to privatise railways because they couldn’t afford to go on paying wages to worthless staff who could not be fired when British railways was state run.

Please don’t blame the bureaucracy. Brits left us with a system of fairly competent but corrupt bureaucracy where the only brightest of the minds could enter thru a very competitive civil service examination. In comes Mr ZA Bhutto; he fires all those who will not work according to his whims and brings in ‘Lateral entry’ directly appointing secretary and senior level persons of his choice. Since then the bureaucracy changed from a corrupt but reasonably efficient to a totally corrupt and totally inefficient. ZAB nationalization sent Pakistan industry back at least 30 years. If nationalization was so great why did his daughter continue with the privatization plan? It was because of ZAB nationalizing the banks that enabled Sharif brothers and his cronies to take huge loans while in power then get the same written off. Now we see son of a small foundry owner worth billions of dollars.

There is no such thing as a national asset. PSM with Rs 100-billion of tax payer’s money down the drain is certainly not an asset. Public sector Corporation such as PIA, Railways & PSM eat up Rs 500-billion each year; as much money as the national defence budget; still you call it an asset! Pray tell me is Pakistan gov’t running a charity?

It does not matter to whom it is sold, what matters is what happens after it. MCB was sold to Mian Mansha dirt cheap, but now he has made into a profitable bank which provides income to the national exchequer thru taxes rather than eat up public funds.

However if my compatriots are happy with bankrupting Pakistan by keep running these money eating bottomless pits, so be it.

 

[Bilal.]

@niaz, sir the tangible damage done by nationalisation was probably much less than the intangible one in terms of human resource development opportunity lost, enterprenueral spirit suppressed, general stagnation in technology advancement, widespread culture of entitlement to job instead of merit and more.

 

[Dubious]

can we privatize NS? I mean seriously, he is getting rid off everything yet not being able to do as much good in return!