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Privatisation is a cornerstone of the government’s economic reforms. The
government is in the process of creating special economic zones, Industrial
estates and value added cities. Two value added cities are being planned at
Faisalabad and one at Multan-Lahore Road to facilitate investors. Mr. Muhammad
Wasi Zafar Federal Minister for Privatisation & Investment stated while
addressing a group of 71 participants of the 87th National Management Course
of National School of Public Policy on the privatisation and investment
policies of the government here today.
Elucidating the salient features of the Privatisation Policy, the Minister
stated that it sought to reduce the government’s role in doing business and to
confine its role to policy making, providing good governance, effective
regulatory framework and enabling environment including physical and technical
infrastructure. Simultaneously it sought to encourage and promote private
sector as ‘engine of growth’, he said.
Policy objectives include fostering competition, to achieve higher
productivity, improve service, attract capital, introduce latest technology
with professional and better management, reduce hemorrhaging through
curtailment of fiscal losses, enhance profits on remaining GoP shareholdings
with higher dividends and tax revenues, strengthening and deepening domestic
capital markets and broadening the ownership base through the public offerings
of GoP shares under the government’s most successful, ‘Privatisation for the
People’ program, he added.
Mr. Wasi Zafar informed that after the promulgation of Privatisation
Commission Ordinance 2000 by the present government, the privatisation
proceeds were being utilized 90 % for debt retirement and 10 % for poverty
alleviation by the government.
Highlighting the achievements on the privatisation front the Minister said
that since the inception of the Privatisation Commission, 87 % of the total
proceeds were realized through privatisation of public sector entities in an
open, fair and transparent manner by the present government i.e from 1999
todate Rs. 417 billion for 64 transactions while from 1991 to 1999 102
transactions could realize Rs. 57 billion. This reflected the government’s
commitment towards the implementation of privatisation policy, which gained
significant momentum during the past seven years, he said.
He added that in order to transfer the benefits of privatisation to the common
citizens of the country and to develop a sense of ownership among them under
the landmark program, ‘Privatisation for the People’, which was participated
by around 3.1 million applicants who got benefit of Rs.63.9 billion in terms
of appreciation in the value of the shares subscribed by them during the
public offerings of NBP, SSGC, OGDC, UBL, KAPCO, HBL etc.
Mr. Wasi Zafar said that after more than 12 years equity of a Pakistani
company has been offered abroad through launching of GDR of OGDCL and UBL
while strategic sale with the management control of PSO and JPC was
progressing accordingly, PPL, SME Bank, NITL, FESCO, PESCO, HEC, PSMC, Salt &
Coal mines, PTDC Motels, SSGC, SNGPL, etc were among the broad-based approved
privatisation program and were in various stages of implementation.
Referring to the liberal investment policy and attractive investment
opportunities the Minister informed that all sectors of economy were open for
investors. We provide level playing field to domestic as well as foreign
investors. All economic sectors were open to foreign investors who could
invest upto 100 % equity and could freely remit capital, profit, royalties and
fees. Pakistan has Investment Protection Agreements with 47 countries and
Agreements for Avoidance of Double Taxation with 52 countries, he informed.
He pointed out that the Foreign Investment was only US $ 322 million in 2001,
which has increased to the record level of US $ 8.5 billion in 2006-07 due to
the government’s progressive economic reforms agenda based on three pillars of
liberalization, deregulation and privatisation, which was indicative of the
investors confidence in the governments policies.
Earlier, presentations were made by the Acting Secretary Ministry of
Privatisation & Investment Mr. Javaid Ali Khan and the Secretary Board of
Investment (BOI) Mr. Mushtaq Malik regarding the functioning and performance
of PC & BOI.
Later, in an interactive session replying to the questions of the participants
the representatives of both PC & BOI said that the misconceptions about the
privatisation process and policy were baseless. In the banking sector,
privatisation had yielded significant dividend for the government on its
shareholding and also increased the job opportunities.
The 87th National Management Course has been organized for senior civil
servants, ambassadors and executives from corporate sector under the National
School of Public Policy at National Management College, Lahore, focusing on
policy formation and implementation processes.