Unmet goals: Privatisation Board under scrutiny

Some blame economy, others say lack of chairman and over-valuation of properties are the reason.

LAHORE:

The Punjab Privatisation Board (PPB) has not achieved its goals due to the absence of a permanent chairman, the slump in the economy, the attitude of district administration officials and the over-valuation of properties put up for auction, officials familiar with its working says.

According to an official, speaking on the condition of anonymity, the PPB had sold only 44 government properties, for Rs310 million, since February 2011 and was finding it tough to raise funds.

In November 2009, the government, in a bid to raise funds for development, earmarked 1,400 properties for sale. A target of Rs12 billion in sales proceeds was set for June 2011. The PPB was handed the responsibility to sell the properties.

Till February 2011, the PPB had raised Rs4 billion, selling 150 properties.

At that point, the contract of its then chairman Nazar Muhammad Chohan was terminated.

The government assigned the additional charge of the PPB to a member of the Board of Revenue to supervise the auction of government properties.

Since February 2011, the PPB had put up 50 properties for auction and only 44 had been sold till February 2012.

The official added that other than the lack of a permanent chairman, the district administrations were not showing much interest in selling the properties.

He said there was also a slump in investment and some of the properties had been over-valued which had led to disinterest by the investors.

PPB secretary Chaudhry Muhammad Ashiq said the government had advertised the post of chairman. He said the slow down in the economy was the main hurdle in the way of privatisation.

The official added that a permanent chairperson could pressure the DCO and the commissioner to expedite the privatisation process. He could also re-evaluate the valuation with the approval of government, he added. The performance of a chairman on additional charge could not be evaluated, but a permanent chairman would be held accountable for his performance, he said.

Published in The Express Tribune, March 7^th, 2012.