Eight departments to be privatised


May 13, 2010

ISLAMABAD: Minister for Privatization Waqar Ahmed Khan on Thursday, told National Assembly that the government is mulling over restructuring of eight units which are running in losses, to improve their functioning and make them profit-earning entities.

Replying to a question, the minister said the Cabinet Committee on Restructuring is considering to reorganise eight units, which are incurring losses of billions of rupees annually to the national exchequer and their privatisation at the moment would serve no purpose.

He said among the entities to be restructured were Pakistan International Airlines (PIA), Pakistan Railways and Pakistan Steel Mills, Utility Stores Corporation and others.

The minister said as part of restructuring, a board of the respective organization would be reformed and top officials, including the Chief Executive Officers and others would be hired form the market, purely on merit basis.

To a question, he said the Council of Common Interests has put almost 56 organizations on its list of privatization but assured  the government would not privatise any of those entities rather would focus on their revamping and reformation.

Waqar Ahmed Khan told the House that PIA owns 99 percent shares in Roosevelt Hotel, which brings revenue of almost $16 million annually.

Mentioning to PTCL privatization, he said Etisalat still owes $800 million to the government and talks are underway to recover the amount.

He said 90 percent of the privatisation money is supposed to be spent on debt retirement. However, any mechanism to check the expenditures is not yet in place.

COMMENTS (5)

Syed Gulrez Hashmey | 14 years ago | Reply Privatization of Pakistan Railways is a very vague term. PR is a highly technical Department. Understanding its working is a very complex job for an outsider. Rail operations must, therefore, remain in the hands of professional railwaymen. The need of the hour is explore the possibility of running Railways on commercial lines while still remaining a government department. Avenues need to be explored from where revenues can be generated. Passenger trains are a total loss. Freight traffic has to be given priority. However manufacturing Units can be privatized and emphasis should be laid on Joint Ventures. PR needs lot of investment to buy locomotives, freight wagons and improve its infrastructure for which the money has to come from the Government. Besides, the State Bank should stop charging interest on the overdraft for the next ten years to give some breathing space to Railways who must strengthen its Marketing Department.
ali hamdani | 14 years ago | Reply @ali syed. When you write try to give the right statistics I mean. Privatization is something that our country needs and I promote it. SOEs go in loss and due to that the country faces trouble due to less efficiency and overstaffing.
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