Privatization Or Personalisation ?

                 

                                    Privatization Or Personalisation ?

Bilawal Bhutto Zardari trying to ignite a new hope and vigour in PPP with his lively speeches after recent dismal performance in general elections. His stance on terrorism getting him raving reviews and appreciations from his supporters or even his stern critique. But at the same time his hard-line stance and relentless criticism of Privatisation is uncalled for rather without much substance and logic.

May be Bilawal positioning against Privatisation doesn't come as a surprise looking at PPP history where his Grand Father Late "ZAB" Nationalised the Pakistan Industry at a time when Pakistan was galloping ahead in industrialisation and modernisation of economy, which is even more baffling to see Bilawal still not come up with a solid reasoning against Privatisation rather a mere rhetoric "Privatisation or Personalisation" slogan which seems attractive rather lucrative as far as attracting the masses but hardly gives any solution to our long standing problems in Public Sector entities marred by corruption and nepotism.

As far as Government is concerned, plan is very simple and straight forward, get rid of these loss making public entities and save 500 billion rupees a year that will lead to decrease pressure on budget deficit and ample funds for development projects like health, education etc, privatise 26% shares of profitable organisations as well to raise close to 5-6 billion dollars that will ease pressure on foreign exchange reserve and will create conducive environment for future FDI in different sectors, As Government is working hard to kick start 225 billion dollar economic engine. In total 68 organizations Government is planning to privatise, A small stake to Private partners with management control in next 3-4 years.

Now let us give Bilawal a history lesson where his Father Zardari Sahib and his party ruled this country for full five years which happened after decades when a democratic party completed its tenure, ironically enough that last happened when Bilawal's grand father completed his tenure in seventies. We have seen Gillani Sahib repeating on countless times revamping Public Sector entities, appointing honest heads of these organisations but unfortunately not a single promise have seen the day light in last five years of PPP rule, in fact both Prime Ministers of previous PPP rule facing charges of corruption and making illegal appointments are under NAB radar and facing courts.

PIA  has accumulated losses of more than 250 billion rupees and piling on these losses by 3 billion rupees a month. Pakistan Steel  has almost come to an halt, running to 10% of its capacity, has accumulated losses of more than 100 billion rupees while it was handed over to PPP regime in profit. According to Opposition Leader PPP paid close to 1400 billion in Power Sector subsidy not to forget the 480 billion which this Government paid after assuming power, which in fact was left over by PPP and Care Taker set up, so the Grand total comes out to be roughly 1900 billion rupees paid in last five. SNGPL and SSGPL with highest line losses in the region crossing 12% in last five years, way beyond International Standards, Similar is the case with WAPDA Line losses which are in high twenties. So if we compile the grand total it comes out to be 500 billion rupees, drained every year of National Exchequer on these Public entities if you add on  the corruption in these Public Sector entities the figure becomes humongous ( According to Transparency Pakistan looses five billion to corruption while Previous NAB chief inflated the figures to 8 billion a day ).

  

                                                           Government run Ind offer consumers

                                                                               few products, reasons why Soviet Ind          

                                                                               fell behind American Counterparts

The soul aim of institutions is to provide quality and efficient service to its consumers, which I can safely say there not a single Public sector entity which is doing that in our land of pures due to decades of loot and plunder, even the most profitable of Government organizations can not make this claim. Secondly a rhetoric, to revamp these organizations seems a farce as well because when this Government took over Pakistan total debt were at historic levels, crossed 14 trillion rupees from 6.5 trillion rupees when Bilawal's PPP took over. Similarly foreign exchange reserves dipped below 10 billion dollars from 17-18 billion dollars despite entering into IMF program and leaving all the payments to the incoming Government. Another argument built against privatising profit making organisations doesn't merit any substance.. Point is fair, Government has no role in running businesses and even after privatisation Government still remain the major share holder of these organizations. Finally just imagine the efficiency and innovation which private buyers bring with them, their profitability surges, netting Government  huge profits and increase in tax revenue as well. Just look at the most debatable and controversial privatisations of recent times KESC and PTCL, their efficiency has improved dramatically appreciated by their strong critiques.

Pakistan need billions and billions of dollars to revamp its ailing and decaying infrastructure and institutions, now question arises where are the resources to build these institutions ? Trillions of rupees are required to build power infrastructure only, where is the money ?

Summing it up I do not agree with Bilawal's Privatisation part but yes I do agree with Personalisation part. Privatisation must be transparent and country's interest must be watched at any cost while at the same time must find ways to protect organisations like Railway's where poor is the most beneficiary, all over World Public transport is subsidised and commuters interest watched. "Asad Umar" PTI raised some solid points if privatisation is inevitable how to get maximum out of it and how to learn from our previous blunders. He talked about Independent Investment Company to look after these transactions though Government tried to address the issue through independent BOG formation, headed by a IBM Chief Financial officer "Zubair Sahib" a man of great integrity but yes Government and opposition must work on this and come up with clean names in BOG. Secondly special attention must be paid to all those workers in these organisations, who fulfil merit, an unfortunate part of history, PPP previous regimes violated all rules of merits and recruited 'jiyalas' in Public sector organisations, for example in Steel Mill alone at least four to five times recruitment's were made than actually required, similar is the case of PIA and rest of the organisations. Finally a regulatory frame work of highest order must be put in place before privatising these institutions.

Government has no role in running businesses, it is a failed practise all over the World, what Bilawal and other major opposition parties like PTI need to come up with some solid reasoning and plan of privatisation, must hold accountable all those involved in loot and plunder in  previous regime, mere rhetoric's wouldn't serve the purpose because the audience both PTI and PPP are trying to lure, seems to have become very smart and have  learned  a lot over a period of time, their political wisdom and acumen has improved many folds as we witnessed in previous GE.