PEW asked Govt’s to rationalise privatization policy

Lahore: The Pakistan Economy Watch on Thursday said that government’s privatization policy is not working well due to some flawed priorities.

Government has completed half of its tenure but it has not initiated reforms in state-run companies without which these units cannot be sold to save loss of Rs 500 billion per annum, it said.

Government had promised to sell inefficient units while signing $6.2 billion standby agreement with IMF but so far it has sold stakes in profitable banks while objective of sale of PIA, Pakistan Steel Mills and power distribution companies could not be realised, said Dr. Murtaza Mughal, President PEW.

In a statement issued here today, he said that profitable ventures should not be sold before selling bleeding enterprises as it is against the promise of PML-N.

He said that selling any institution before restructuring is a pipe dream therefore government should not delay reforms which would become difficult by the passage of time.

Dr. Murtaza Mughal said that current state of affairs is enough to discourage local and foreign investors while hefty amount spent to keep these corporations alive should be saved and spent on public welfare.

He said that asset sale should be conducted responsibly so that no one can raise any objections which will help government to achieve goal of reducing budget deficit.

In 1970s, all major private industries and utilities were put under the government ownership under the nationalization programme that led the economic disaster in Pakistan. Since then, the demand for denationalization gained currency but nothing significant has been achieved so far.