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After approval from the Cabinet Committee on Privatisation (CCOP) during the
current month, the new privatisation policy and program will be announced.
Syed Naveed Qamar Federal Minister for Privatisation informed while discussing
privatisation prospects in a program of local TV channel today.
Elucidating the salient features of the recommendations of PC board for the
new policy, he said that for progress, development and expansion public sector
entities mode of Public Private Partnership (PPP) would be ensured instead of
their out right sale, which would bring in efficiencies, dividends on
government's shares, tax receipts and increase in the value of the shares of
such entities as long term benefits rather than focusing on proceeds. Just to
bridge the budget deficit by selling family silvers could not be termed as
better policy, he added.
Syed Naveed Qamar further stated that setting privatisation proceeds target by
selling national assets was not the priority of the present government, which
was practiced during Shaukat Aziz era and the proceeds were used for budget
deficit contrary to the PC law for utilizing the proceeds i.e. 90 % for debt
retirement and 10 % for Poverty Alleviation Program. Unfortunately the law was
not implemented.
People have lost confidence in the privatisation process due to certain past
deals such as KESC, which produced worst results and no development or
expansion could be made by the buyer but the difference in new policy would be
felt loudly, he maintained.
He totally ruled out any possibility of reversing the privatisation of KESC
and said that now the new management has started working to improve the
performance of the company, which would take its due time.
He said that during the past eight years not a single MW was added to the
power system and he asked the media to identify and fix responsibility
on those who forced IPP's to leave and to close down their running projects,
which has resulted in 5000 MW short fall subsequently leaving no room for
industrialization and development. We should never be in a hurry to get rid of
State Owned Entities (SOEs) and should wait for the appropriate time and
better price to make them efficient through brining in the private sector
management in a transparent way as the private sector management was always
efficient and effective, he added.
He informed that expansion plan by associating private sector for Pakistan
Steel Mills Corporation was under consideration and countries like China and
others were expressing their keen interest in it. He maintained that the
multinational companies operating in Pakistan were not only earning profit but
also expanding their operations and only those potential investors were
reluctant to come who have never been here and depend on the country wrong
image being portrayed.
The Minister further stated that national consensus was the basic requirement
prior to bringing transactions like Qadirpur Gas Field to the market. He said
the present government restored the labour and trade unions through
legislation and has an agreement with the Labour Federations. SME Bank and
Heavy Electrical Complex would be included in the new privatisation list.
Replying to a question Naveed Qamar said that there was no ban on domestic
investors to participate in the privatisation process rather we encourage the
foreign investors to join with local partners. Significant quality improvement
has been witnessed in PTCL after its privatisation. Those who take decisions
were punished and those who did nothing were never taken into account, he
stated.
He said that now the privatisation process was so transparent that it has no
match with any other Ministry. This impression was totally wrong that
financial institutions were being nationalized in the world whereas the
respective government's extending bail out packages for such institutions, he
expressed.