Privatisation of three state-owned entities approved

[pkpatriotic]

Privatization of three state-owned entities approved
By Mubarak Zeb Khan
Friday, 07 Nov, 2008

ISLAMABAD, Nov 7: Prime Minister Syed Yousuf Raza Gilani on Friday approved privatisation of three strategically important state-owned entities--- Qadirpur Gas Field, Small and Medium Bank, and Heavy Electrical Complex-- for raising funds to overcome the balance of payment crisis.

As one of the strong conditionality, the decisions of privatisation came two days ahead of the scheduled meeting of the executive board of the International Monetary Fund (IMF), which will take decision regarding loan and term and conditions to help Pakistan pay its foreign debts in the next couple of years.

But, the government took the decision despite strong criticism from the unions of these entities, who already threatened boycotts and protests against the privatization of what they called the ‘national assets’ and backbone of the country’s energy.

As members of the opposition during the past 10 years, PPP leaders had always questioned the sale of state owned entities and asked for a parliamentary debate before making any transactions. This latest move by the PPP government presents a stark contrast to their previous stance.

Pakistan requires foreign aid worth $3.5 billion to $4.5 billion for repayment of its debts in the current fiscal year. A similar deficit is also expected for next year.

Chairing the Cabinet Committee on Privatisation (CCOP), Prime Minister Gilani gave the go ahead for initiating the process for privatising 37 per cent shares of the Oil and Gas Development Company Limited's (OGDCL) Qadirpur Gas field with transfer of operational control.

The CCOP also allowed the bidding of Heavy Electrical Complex (HEC) and Small & Medium Enterprises (SME) Bank.

 

[Cheetah786]

Sell sell sell privatisation will save Pakistan in the long run government run unionized plants produce lazy a$$ workers and cost more then they make.private corporations will make money out of same crown corporations and pay taxes benefiting the economy and GOP.

 

[Kumar]

Its a good move by pakistan.
I dont know how the govt orgs are in pakistan but in india its one of the corrupted orgs. The only way to eliminate corruption is privatization.

I know many people who works in govt orgs wont like this move. because they have to work in private orgs.

 

[maqsad]

It is truly shocking that even the PPP is now promoting bhangeeconomics and selling off everything that belongs to the state. And I don't see how people are considering this a good move, this is not a good move this is a desperate move caused by the economic collapse created by mismanagement for the last decade and even before.

It is just amazing how everyone sees this as progress when it is the equivalent of pawning off your personal possessions to pay off loan sharks.

And who is buying these companies, is it foreign investors? If so then the future profits of these companies will be sucked out every year instead of recirculating in the Pakistani economy further adding to the balance of payment crisis.