Due to the Supreme Courts intervention the privatization process of Pakistan State Oil (PSO) has for the time being delayed. There is no dispute in privatization but only if a local bidder was entitled to participate or not.
There are two views on privatization. The first one is that due to increasing complex internal administrative affairs and external situations the governments world over today have no time to effectively look after such financial public sector projects hence these be given in private hands or autonomous status. The second view which also has much weight is that why to privatize Units giving golden eggs and more particularly if these are at all to be privatized why these should go in foreign hands. This is also a very valid convincing point. In Pakistan however this phenomena has reached to a some what seriously thought provoking point that the privatization proceeds are mostly been utilised to meet increasing deficits. Another issue but a very genuine one is upto what level involvement of foreigners in our financial markets is safe. And the third point which recently some people very rightly raised is that with the speed of sale of our national assets what will be left if tomorrow really a bad need did arise. Some views however are that this privatization is nothing but merely a modern tool in place of east India company to make the developing countries salve through finance which tightens the grip more without much expense and struggle compared to the wars.
We are often given an example that even the British privatized their The British Telecom and the British Petroleum. But what we are not told that the British Government distributed the share application forms by placing them on Petrol Pumps, by insetting them as pamphlet sheets in newspapers delivered home, in offices and general stores thus privatizing the two giants to its own public thus retaining the national assets.
Now that the Honourable Supreme Court of Pakistan is taking much interest in public interest issues I most respectfully pray to Their Lordship to kindly consider that the PSO shares be exclusively sold to the general public in the following manner. 500 shares each to old pensioners who are being discriminated in pension. 500 shares each to all those retirees who are getting less than Rs. 5000 a month pension. 500 shares to government and private sector employees drawing less than Rs. 8000 a month salary. For retired persons the Government may direct the Banks to give two three months advance pension to these retirees enabling them to subscribe and this loan may be deducted in some installments, if possible. This way the national asset will remain in the hands of the nation and these real domestic saver shareholders will in this high cost of living will get a yearly dividend which in practical term will be an annual relief to them from the Government in recognition of their services. These citizens then can label this income as it may please them. For example one may take it as a Bonus, one may pay his electricity bill and feel government has exempted him from payment of electricity once a year etc. Since the privatization is being done for the interest of the country and its people, as is claimed by the government, then it is in the best interest of people that such type of people from lower segment get real feel of participation and get some annual relief. It may increase a little paper work at the initial stage but in todays high tech computers it is nothing compared to collective interest of the common man.
There are two views on privatization. The first one is that due to increasing complex internal administrative affairs and external situations the governments world over today have no time to effectively look after such financial public sector projects hence these be given in private hands or autonomous status. The second view which also has much weight is that why to privatize Units giving golden eggs and more particularly if these are at all to be privatized why these should go in foreign hands. This is also a very valid convincing point. In Pakistan however this phenomena has reached to a some what seriously thought provoking point that the privatization proceeds are mostly been utilised to meet increasing deficits. Another issue but a very genuine one is upto what level involvement of foreigners in our financial markets is safe. And the third point which recently some people very rightly raised is that with the speed of sale of our national assets what will be left if tomorrow really a bad need did arise. Some views however are that this privatization is nothing but merely a modern tool in place of east India company to make the developing countries salve through finance which tightens the grip more without much expense and struggle compared to the wars.
We are often given an example that even the British privatized their The British Telecom and the British Petroleum. But what we are not told that the British Government distributed the share application forms by placing them on Petrol Pumps, by insetting them as pamphlet sheets in newspapers delivered home, in offices and general stores thus privatizing the two giants to its own public thus retaining the national assets.
Now that the Honourable Supreme Court of Pakistan is taking much interest in public interest issues I most respectfully pray to Their Lordship to kindly consider that the PSO shares be exclusively sold to the general public in the following manner. 500 shares each to old pensioners who are being discriminated in pension. 500 shares each to all those retirees who are getting less than Rs. 5000 a month pension. 500 shares to government and private sector employees drawing less than Rs. 8000 a month salary. For retired persons the Government may direct the Banks to give two three months advance pension to these retirees enabling them to subscribe and this loan may be deducted in some installments, if possible. This way the national asset will remain in the hands of the nation and these real domestic saver shareholders will in this high cost of living will get a yearly dividend which in practical term will be an annual relief to them from the Government in recognition of their services. These citizens then can label this income as it may please them. For example one may take it as a Bonus, one may pay his electricity bill and feel government has exempted him from payment of electricity once a year etc. Since the privatization is being done for the interest of the country and its people, as is claimed by the government, then it is in the best interest of people that such type of people from lower segment get real feel of participation and get some annual relief. It may increase a little paper work at the initial stage but in todays high tech computers it is nothing compared to collective interest of the common man.
This cap was introduced when Attock Oil insisted on a minimum gauranteed return on Attock Refinery expansion; GOP agreed but also insited on an upward cap as well. The intention was that Attock would utilize these funds to reinvest in Pakistan in the form of oil exploration and refinery improvement. Instead they haved used it to purchase assets already in place. Currently Attock Oil have enough Rupee funds to outbid any foreign investor, thus depriving GOP of approx $600-million as FDI. 
