Core assets cause a dent of $3b

ISLAMABAD: Federal Minister of Privatisation Waqar Ahmed Khan has said core organisations are a great burden on the national exchequer, causing a dent of about $3 to $3.5 billion a year.

“This is not a small amount,” he said, adding Pakistan Railways has been working without a balance sheet that has led to inefficiency and losses of billions of rupees to the state.”

He was speaking at a joint meeting of the UK-Pakistan Chamber of Commerce and Industry (UKPCCI) and Pakistan Press Club in London, said a handout issued by the Privatisation Commission on Monday.

However, Khan said core assets such as Pakistan Railways, Pakistan International Airlines, Pakistan Steel Mills, Utility Stores Corporation and Pakistan Electric Power Company will not be sold. At the same time, he added, the government is taking steps to reorganise these assets and turn them into profitable entities.

“We have embarked on a policy to re-shape these organisations by bringing in people with sound background and knowledge for running them in a profitable manner,” he said.

Khan said the government is taking steps to launch convertible bonds to generate liquidity and rely on its own resources, adding the government is aware of the huge fiscal deficit facing the country and has taken steps to reduce it in a gradual manner.

He said the government is considering innovative ways which can create liquidity and become self-sustained.

He was of the view that the government should be in the business of making policies, instead of running businesses.

“The government’s job is to make policies which are conducive and supportive of the private sector business development process,” he stated.

Earlier, UKPCCI President Naheed Randhawa said privatisation is the only way forward to put all sick industries back on track. He urged the government to make transparent recruitment policies and bring in qualified people for running state-owned enterprises.

Published in The Express Tribune, July 20^th, 2010.