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Pakistans privatization programme most successful in Asia.

ISLAMABAD, October 06, 2010 (Balochistan Times): Pakistans Privatization Program is the most successful in South Asia, Central Asia and the Middle East, which has fetched over $ 9 billion, proceeds through the privatization of 167 State Owned Entities (SOEs). It was informed during a briefing to the faculty and the participating senior officers of National Management Course here. While giving the sartorial breakout Agha Waqar Javed Senior Advisor Privatization Commission said that 100 percent state owned enterprises in the chemical, textile, nitrogen fertilizer, cement, rice, roti, and light engineering while 98 percent automobile industry, 96 percent ghee mills and 100 percent units of Phosphate fertilizer have been privatized. Banking industry privatized substantially due to which 80 percent of the banking sector was under private ownership, he said. Elucidating the salient features of the new initiatives he said that the government was endeavouring to enhance value of the government shareholding, maximization of profit, modernization and up gradation of SOEs, explore and create new assets, management and technology transfer benefits, increase investments in SOEs by identifying business benchmarks and outputs, remedial measures and generation of employment, exercise Public Private Partnership (PPP) as a policy to conduct privatization in the PPP mode for 26 percent of the equity stake along with transfer of management, set performance benchmarks, milestones and to safeguard Government interest through protective covenants. In order to empower employees of State Owned Entities, for having their say in the Board of Directors of the respective entity and allocating 12 percent shares for the employees by establishing Trusts, the Cabinet approved Benazir Employees Stock Option Scheme (BESOS). Under this scheme Twelve percent (12 percent) of the government owned share holding in 78 SOEs is being given to employees free of cost while they are also entitled to get dividend accordingly. Shares and Unit Certificates are being distributed on the basis of length of service of employees. Government Guaranteed buy back of these Unit on retirement on superannuation or medical ground, retrenchment by organization or death. Briefing the delegates regarding the process, modes of privatization and utilization of privatization proceeds he also highlighted the need for privatizing SOEs and stated that the failure of Public Sector reforms, poor performance, increasing infrastructure needs, fiscal constraints and signal to international investors were the main reasons. The Acting Secretary Privatization Commission (PC) Mr. Shehzad Iqbal and senior officials of the PC were also present during the meeting.

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Publication:Balochistan Times (Baluchistan Province, Pakistan)
Date:Oct 6, 2010
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