Economic efficiency : ‘Privatisation leads to profitability’

ISLAMABAD: Privatisation of Public Sector Enterprises (PSEs) is essential for making them efficient and profitable as privatisation reduces economic inefficiencies and fosters competition, according to Islamabad Chamber of Commerce and Industry President Mahfooz Elahi.  Addressing the business community on Monday, he said that the public sector enterprises drain away a significant chunk of government resources each year and their annual operational losses about two per cent of the GDP.  There was a need for good follow up on privatisation of these enterprises which have put heavy burden on economy. Elahi said that restructuring PSEs was necessary to reduce the burden on the budget, and improve public service delivery.

Published in The Express Tribune, June 14^th, 2011.