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Privatisation is the key to generate investment and improve
competitiveness. Arthur Bayhan, Chief Executive Officer of the Competitiveness
Support Fund, stated this during a special presentation on the Competitiveness
Support Fund made to the Privatisation Commission on the Global
Competitiveness Indicators impacting the privatization process in Pakistan
here today.
The meeting was chaired by Mr. Arif Mansur, Federal Secretary Mininstry of
Privatisation & Investment. Mr. Mansur informed the CSF delegation that the
privatisation process has been very successful, especially in the banking,
capital markets, automotive, cement, chemical and engineering, and the
fertilizer sectors. He stated that PC would be completing some major
transactions by the close of this financial year.
Mr. Arif Mansur told the CSF delegation that the Privatisation Commission
would like to work closely with the CSF on improving Pakistan’s ranking on the
Global Competitiveness Index of the World Economic Forum. Mr. Mansur also
asked CSF to assist the Privatisation Commission on various transactions
related to data to be provided to the international sources. Mr. Mansur also
proposed CSF to create a formal partnership to highlight the importance of the
privatization of knowledge-driven economic development.
On the future joint initiatives for CSF and the Privatisation Commission (PC)
to work together, Mr. Arif Mansur asked the CSF to assist PC in establishing
linkages with international institutions for the availability of Pakistan’s
up-dated data to the international sources. He further asked the CSF to assist
the PC in providing technical assistance to add value to the privatisation
process.
The State of Pakistan’s Competitiveness Report of the CSF and the Global
Competitiveness Report (GCR) of the World Economic Forum (WEF) identified poor
quality of information regarding changes in policies and regulation and the
efficacy of private boards as the most problematic factors in doing business
in Pakistan. The GCR indicated and re-emphasized in the State of Pakistan’s
Competitiveness Report that Pakistan has made improvements in the diversion of
public funds, wastefulness of government spending, efficacy of legal framework
and intensity of local competition indicators. The presentation also
highlighted the competitiveness aspects of the privatization issues in
Pakistan with respect to the Global Competitiveness Report (GCR) of the World
Economic Forum.
Arthur Bayhan, Chief Executive Officer of the Competitiveness Support Fund, in
his presentation briefed the senior management of the Privatisation Commission
on the indicators affecting the privatisation process and competitiveness of
the country. Mr. Bayhan said, “The Ministry of Privatisation has a key role to
play in improving Pakistan’s Global Competitiveness Ranking. While protecting
the rights of existing workers, the Government needs to continue to be
attentive to the possibilities of improving efficiency by passing
non-strategic state-owned enterprises to the private sector. The recent
successful results in the financial sector are in large part thanks to the
continuation of government’s policies. This will improve Pakistan’s scores in
terms of a variety of efforts related to the “business sophistication” and
“market efficiency”.
Mr. Bayhan emphasized the importance of the foreign direct investment coming
into Pakistan. He informed the meeting that the investment coming into
Pakistan should support the sectors contributing to the knowledge-based
economy, as it is crucial for sustainable economic growth. He further informed
the meeting that CSF is working very closely with its partner institutions
such as the Pakistan Business Council and the FPCCI to increase private
sectors’ focus on professionalism and corporate governance. “Pakistan should
also make efforts to be more visible at the international arena, as it is
critical for a successful privatization process” said Bayhan.
The Prime Minister, Shaukat Aziz launched the State of Pakistan
Competitiveness Report in March this year. The Prime Minister asked the CSF to
bring all line- ministries and relevant institutions on board to improve
Pakistan’s ranking on the Global Competitiveness Report of the World Economic
Forum. CSF’s presentation to the Privatization Commission was to discuss the
identified sectors where Pakistan is lacking behind and how Pakistan can
improve its competitiveness. CSF has already briefed most of the ministries
and meetings with the other ministries and relevant institutions will follow.
Pakistan showed solid improvement from last year’s 94th place to 91st place
this year on the Global Competitiveness Index (GCI). The GCI ranked 125
countries in this year’s survey over 117 in the prior year. Pakistan’s gain
takes on added significance when compared to the drop in rankings experienced
by many noteworthy emerging markets. In comparison to the other economies, GCI
rankings dropped by 9 for Russia and Brazil, by 6 for China, by 2 for Thailand
and by 1 for Malaysia. With its rise of two places over last year, regional
competitor India failed to keep pace with Pakistan’s improvements. CSF is
working closely with the World Economic Forum, as its country partner
institution, on the ranking of Pakistan as well as on identifying the areas to
be improved and the methodologies that will bring about that improvement.
The CSF delegation comprised of Arthur Bayhan, CEO of the Competitiveness
Support Fund and Abdul Basit, Joint Secretary, of the Prime Minister’s Special
Programme Wing, Ministry of Finance.
Competitiveness Support Fund (CSF) is a joint initiative of the Ministry of
Finance, Government of Pakistan and the United States Agency for International
Development (USAID). CSF Supports Pakistan’s goal to be of a more
competitiveness economy by providing input into policy decisions, working to
improve regulatory and administrative frameworks and enhancing public-private
partnerships within the country. CSF also provides technical assistance and
co-financing for initiatives related to entrepreneurship, business incubators
and private-sector-led initiatives with research institutes and universities
that contribute to creating a knowledge-driven economy. Support for CSF is
part of the $1.5 billion in aid that the U.S. Government is providing to
Pakistan over five years to improve economic growth, education, health, and
governance.