TIME NOT APPROPRIATE TO SELL PIA-PR-PSM-Says Privatisation Minister
 

Islamabad, June 16, 2010

The government has undertaken restructuring of Pakistan International Airlines (PIA), Pakistan Railways (PR) and Pakistan Steel Mills (PSM) to make them turnaround, as this is not the appropriate time to sell our precious national assets for small discounts. The Federal Minister for Privatisation said while chairing the opening session of NU-FAST seminar on “CONTRIBUTION OF PRIVATE SECTOR TO THE ECONOMIC GROWTH OF PAKISTAN” here today.

He informed that the total government expenses were Rs.160 billion while currently Rs.40 billion were being spent to run these institutions. There was a vast scope for local and foreign private sector to come forward and bridge the gap through their positive contribution, he stated.

The Minister further said that the government was in the process of hiring people of tremendous integrity and credibility from the private sector as MD, COO and ED to run the State Owned Entities (SOEs) efficiently, making them profitable and enabling each entity to function independently and answerable to the respective Board of Directors. Giving the current scenario of SOEs performance, Senator Waqar informed that Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL) have not revalued their assets for the last 15 years whereas Pakistan Railways has no balance sheet. The impression regarding PIA expenditure in salaries was not correct, as it was only 9 % of its total expenditure, he added.

Senator Waqar said that due to government’s reconciliation policy and continuity of policies made in an open and transparent manner, political stability has been achieved, which was reflected during 18th amendment, war against terror, budget and the Prime Minister’s election and such stability provided conducive atmosphere to private sector for expanding and establishing their businesses.

The Minister informed that the government was focused to relay on its own resources and to utilize its talent for revenue generation and making private sector more efficient and to stop political interference in the SOEs.

Mr. Zahid Maqbool President Islamabad Chamber of Commerce and Industry (ICCI) said in his keynote address that private sector being engine of growth was the major contributor to the GDP growth; he demanded that the government should get rid of white elephants like PIA, PR and PSM by privatizing them. The representative of I.T and Automotive industry while highlighting the performance of their respective sectors informed that automotive industry has generated Rs.154 billion and employed 175000 workers and manufactured 264000 cars this year while in I.T sector 100 software houses have been registered among them 700 were performing effectively. The opening session concluded on Q & A round.