KARACHI: For attaining higher growth rate and boosting economy, the government will have to go for mass-scale privatisation despite opposition, said Federal Minister and Chairman, Privatisation Commission, Mohammad Zubair, on Saturday.

Speaking to members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the minister disclosed that process of inviting Expressions of Interest (EoIs) for Faisalabad Electric Supply and Distribution Company would start from Monday.

He further said that Initial Public Offerings (IPOs) of State Life Insurance Corporation (SLIC) and 30 other state-owned entities, including SME Bank, would soon be announced.


Rs400bn losses being incurred by nine power distribution companies


He said as a nation fundamental decision has to be taken and the Privatisation Commission (PC) was ready to deliver on the promise of disposing of state-owned entities.

The minister disclosed that on average Rs400 billion losses are being incurred by all the nine power distribution companies.

He warned that the country could not offer employment to all at 4pc GDP growth rate and in order to overcome this issue, a high GDP growth of 7pc would be needed and without privatisation, higher growth rate may not be achieved.

He further stated that the commission had written a letter to the chief minister of Sindh for privatisation of Pakistan Steel and in case the provincial government fails to respond by the end of next month, the commission would look for other buyers.

He disclosed that by 2018 the Privatisation Commission will dispose of Pakistan International Airline, Steel Mills, SME Bank, SLIC and 30 other state-owned entities.

Earlier, FPCCI’s Acting President Shahnawaz Ishtiaq stated that since the handing over of state-owned entities to the private sector, these have stopped making losses, and are presently earning profits.

Published in Dawn, November 1st, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.