A step towards a better economy, the newly formed Federal government of Pakistan has just decided to privatize many institutions/organizations.
The news was just revealed before the National Assembly Standing Committee on Privatization. The committee was informed that in the next four to five years the government will privatize 48 organizations. This privatization will be executed in (2) two phases. The first face will be of one and half year and almost 5 to 6 organizations will be privatized. However, the second phase will be of 3 to 4 years and 40 organizations will be privatized.
Some of the renowned institutions to be privatized include Telephone Industries of Pakistan (TIP), Pakistan Telecommunication Company Ltd. (PTCL), Port Qasim Authority (PQA), National Book Foundation, IESCO, FESCO, many other renowned Electricity providing companies and Government institutions.
Pakistan Telecommunication Limited
As far as PTCL is concerned, its 26 % of shares have already been privatized government of Pakistan(GOP). In June 2005, 26% of shares of PTCL were sold to M/s Etisalat, and the Sale Purchase Agreement (SPA) was signed in June 2005.
According to terms of an agreement, Etisalat made the first payment of $1.4 billion i.e. 53% in April 2006. However, the balance payment was contingent upon the transfer of 98% shareholdings till Jan 2007.
However, talks are still going on between the two companies to clear $800 million outstanding dues on account of privatization.
The government of Pakistan has also added PTCL to its privatization agenda, which hopefully be executed in the upcoming three and half years.
Although many electricity providing companies are not facing as many losses the performance of such companies as regard to management of line-losses, power management etc is not as efficient as it should be.
Telephone Industries of Pakistan
State-owned enterprise is Telephone Industries of Pakistan is already facing heavy losses and its annual revenue is continually going down.
Name of organizations that will be privatized in the 1st phase:
1- SME bank Limited
2- Mari Petroleum Limited (MPL)
3-First Women Bank Limited (FWBL)
4- 1223 MW Balloki Power Plant
5- Jinnah Convention Centre, Islamabad
Organizations to be privatized in the second phase:
1- House Building Finance Corporation (HBFC)
2- National Investment Trust Limited (NITL)
3- National Insurance Company (NIC)
4- Pakistan Reinsurance Company (PRC)
5- State Life Insurance Corporation
6- Oil and Gas Development Corporation Limited (OGDCL)
7- Pakistan Petroleum Limited (PPL)
8- Government Holding Private Limited (GHPL)
9- Pakistan Mineral Development Corporation (PMDC)
10- Faisalabad Electric Supply Company Limited (FESCO)
11- Islamabad Electric Supply Company (IESCO)
12- Lahore Electric Supply Company (LESCO)
13- Gujranwala Electric Power Company Limited (GEPCO)
14- Multan Electric Power Company Limited (MEPCO)
15- Peshawar Electric Supply Company Limited (PESCO)
16- Hyderabad Electric Supply Company Limited (HESCO)
17- Quetta Electric Supply Company Limited (QESCO)
18- Sukkur Electric Power Company (SEPCO)
19- Kot Addu Power Company
20- Jamshoro Power Generation Company Limited
21- Central Power Generation Company Limited
22- Lakhra Power Generation Company Limited
23- Northern Power Generation Company Limited
24- PIA-IL (Roosevelt Hotel, NY & Scribe Hotel)
25- National Fertilizers Corporation, it’s unit and subsidiaries
26- State Engineering Corporation, its units, and subsidiaries
27- Heavy Electrical Complex (HEC)
28- Pakistan Machine Tool Factory (PMTF)
29- Pakistan Engineering Company (PECO)
30- Pakistan Industrial Development Corporation
31- Sindh Engineering Limited (SEL)
32- Morafco Industries
33- Republic Motors Limited (RML)
34- Pakistan Industrial and Technical Training Centre
35- Export Processing Zone Authority
36- Port Qasim Authority (PQA)
37- Karachi Port Trust (KPT)
38- Pakistan National Shipping Corporation (PNSC)
39- Telephone Industries of Pakistan, Haripur (TIP)
40- Pakistan Telecommunication Co. Ltd. (PTCL)
41- National Book Foundation (NBF)
The government has to take major stakeholders in confidence before it actually starts to execute the said privatization. Because privatization normally results in a change in management structures, employees lay off and golden hands shake etc
Fingers crossed for such massive privatization, and let us hope that this strategy brings fruitful results for our economy.
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