Minister of State for Privatisation, Muhammad Zubair has invited suggestions from political parties, as the Government plans to privatise certain loss-making organisations such as the Pakistan International Airlines (PIA) and the Pakistan Steel Mills (PSM).
"We would welcome valid input from all major political parties, business leaders and media to make our privatisation process more practical and generally acceptable. But, privatisation of certain loss-making entities is unavoidable in the larger interest of the country and the people," the Minister said while addressing the representatives of various business associations/fora during an interactive session with them, here Saturday night.
The Minister said that he has planned interaction with politicians on the privatisation issue, adding that he can have a separate session with the media to keep them abreast of true picture and keep them on board.
He said that certain political parties used to support privatisation and it was a main point in their election manifestos. But, these were now opposing privatisation of the public sector institutions like the PIA and the PSM, which have eaten big amounts from national exchequer and reached at the worst stage.
"We have Rs. 180 billion loss from PIA today. Pakistan Steel is today operating at the deadly lowest capacity of 2 per cent. It must operate at least at 18 per cent of its total production capacity."
Muhammad Zubair pointed out that 50 per cent of PSM's officers have low education of 8th class to High Secondary (Intermediate) and it would not be fair to continue with this lot.
He said that Prime Minister Muhammad Nawaz Sharif has supported the privatisation process. However, he added, he has emphasised on maintaining transparency, saying "transparency should be name of the game." The Minister informed that the Privatisation Commission has placed 18 public sector entities on privatisation list.
The Economic Coordination Committee (ECC) and the Federal Cabinet have approved the Privatisation Commission's plan for privatising the PIA and the PSM, he said.
He said that during the second government of the Pakistan Muslim League- Nawaz, Muhammad Nawaz Sharif, being the prime minister, had initiated the privatisation process which was carried forward by the Musharraf government.
In 2006, the privatisation of PSM was halted after the Supreme Court of Pakistan's intervention.
"We have just re-launched the process," he remarked adding that the Government would be acting within legal framework. He said former prime minister Zulifkar Ali Bhutto went for nationalisation but his own daughter Mohtarma Benazir Bhutto reversed the process when she became prime minister, sensing the changed environment/circumstances.
He said the business community in general has supported the Government's privatisation move.
To a question, the Minister said the privatisation of the PIA and the PSM would be done on a fast track after meeting all the legal and procedural requirements.
The Government is spending Rs 500 billion annually on the loss-making public sector organisations, and it would be better to use this huge amount for other purposes relating to social and economic uplift of the people.
"Our national assets should deliver to 180 million people of the country instead of a few thousand people," he asserted adding that the huge financial losses by these organisations is the burden over masses.
To a question, the Minister promised that the rights of the employees would be dully protected through an agreement with the buyer. The Board of Investment will define the formula, he added.
Patron of Pakistan-Ukraine Business Council Engr. M.A. Jabbar suggested the Minister that the Government should make every possible effort to escape conflicts and contradictions while making the privatisation. It should take into view the 18th Amendment to the Constitution. The provinces should be taken on board to win maximum ownership for approving the proposed privatisation of the listed entities through meetings of the CCI.
"This would be the only way to move smoothly towards privatisation," he added.