Who Owns Pakistan - Yimg

perpetuated their control over the affairs of the companies, without being
accountable to the shareholders.
Lawrence White has illusttrated how the managing agency system was being
used to hoodwink both the shareholders and income tax authorities.
The Steel Corporation of Pakistan was one of listed companies controlled by the
Fancy group and it was buying its input for steel making from Pakistan
Industaries limited, a wholly owned by Fancy subsidiary. The products of Steel
Corporation were marketed through a selling agent, steel sales limited, another
Fancy company.
The management of Steel Corporation vested in the hands of managing agents,
industrial management limited, agian another Fancy company. Thus through the
operations of these companies, Pakistan Steel Corporation could distort the
accounts anyway it desired.
M A Rangoonwala who was the biggest manufacturer of vegetable ghee
(Cooking oil) controled Libery-American Tank Terminal Company which had the
monopoly of importing edible oil.
Bhutoo's second bolt of nationalization came on Jan 1, 1974 when he decreed
the nationalization of banks, life insurance, shipping and marketing of petroleum
products. 13 banks, over a dozen insurance companies, two petroleum
companies and 10 shipping companies were nationalized. Finance Minister, Dr.
Mobashar Hasan declared at a press conference next day that banks have been
nationalised because the wealth of the nation must be used for the benefit of the
nation and can not be allowed to be concentrated in the banks of a few
individuals.
"Banks which till Monday were the private property of a group are
now public property. All our big industries in the private sector were
set up largely on the basis of financial accommodation provided by
the banks and the financial institutions. Because of the previous
governments obsessions with GNP growth, industrial power was
concentrated in the hands of few robber barons." he said.
Bhutto and his cabinet ministers were never apologetic about nationalization and
strongly defended it in meetings with the Pakistan Federation of Chamber of
Commerce and Industry (FPCCI) and at similar other forums. It was argued by
them that the government was committed to end exploitation of labor class to
improve their working conditions and break the concentration of wealth.
On April 1, 1973 Bhutto told Lahore Chamber of Commerce and Industry (LCCI)
that
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