For survival: LCCI wants private sector role in loss-making PSEs
Extraordinary strategy required to stop heavy losses to the exchequer
Extraordinary strategy required to stop heavy losses to the exchequer. PHOTO: REUTERS
LAHORE:
The Lahore Chamber of Commerce and Industry (LCCI) has suggested that the government convert failing state-owned enterprises to a public -private partnership model, a move aimed at helping loss-making companies perform better.
LCCI President Sheikh Muhammad Arshad, Senior Vice President Almas Hyder and Vice President Nasir Saeed said the government will have to resort to ‘some extraordinary plans” to control heavy losses amounting Rs600 billion to the national exchequer.
“Business community is the ultimate loser as the loss-making PSEs are run through duties and taxes collected from the trade and industrial sectors.”
They were of the view that a “salvage plan” would work for Pakistan Railways and Pakistan International Airlines (PIA), but situation in the other PSEs was disappointing.
“Considering the massive losses PSEs are causing, government shall take immediate measures to make these organisations profitable or consider their privatisation,” said the LCCI office bearers.
“In advanced economies, role of PSEs is minimal and private sector is the most important instrument of socio-economic prosperity,” they said
“Being the most employment and capital intensive organisations of the country, PSEs’ significance cannot be overlooked,” they added, suggesting the formation of a committee comprising experts from public and private sector to revisit strategies and adopt methods that provide new impetus to PSEs.
“The committee shall scrutinize the broader political philosophy and vision under which PSEs will play their role in the new competitive environment,” they said.
Published in The Express Tribune, November 22nd, 2015.
The Lahore Chamber of Commerce and Industry (LCCI) has suggested that the government convert failing state-owned enterprises to a public -private partnership model, a move aimed at helping loss-making companies perform better.
LCCI President Sheikh Muhammad Arshad, Senior Vice President Almas Hyder and Vice President Nasir Saeed said the government will have to resort to ‘some extraordinary plans” to control heavy losses amounting Rs600 billion to the national exchequer.
“Business community is the ultimate loser as the loss-making PSEs are run through duties and taxes collected from the trade and industrial sectors.”
They were of the view that a “salvage plan” would work for Pakistan Railways and Pakistan International Airlines (PIA), but situation in the other PSEs was disappointing.
“Considering the massive losses PSEs are causing, government shall take immediate measures to make these organisations profitable or consider their privatisation,” said the LCCI office bearers.
“In advanced economies, role of PSEs is minimal and private sector is the most important instrument of socio-economic prosperity,” they said
“Being the most employment and capital intensive organisations of the country, PSEs’ significance cannot be overlooked,” they added, suggesting the formation of a committee comprising experts from public and private sector to revisit strategies and adopt methods that provide new impetus to PSEs.
“The committee shall scrutinize the broader political philosophy and vision under which PSEs will play their role in the new competitive environment,” they said.
Published in The Express Tribune, November 22nd, 2015.