Who Owns Pakistan - Yimg

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Privatization - Turning the Clock Back "A government too soft on big business, is bad for economy, as a government too harsh on big business" A Scottish Proverb Privatization was advocated as the magic cure for Pakistan's economic woes by both Nawaz Sharif, the spiritual heir to military dictator Zia ul Haq and Benazir Bhutto, wearing the political mantle of her socialist father whom she and her party now call Shaheed (martyred) Bhutto. Both championed privatization on the plea that public sector enterprises being inefficient and corrupt were a drain on government resources and their sale help bridge the budget deficit, by curtailing the government expenditure and by using the proceeds of privatization for retiring public debt. First Nawaz government in 1990 argued that " in economic terms, government has suffered a cumulative loss of Rs 27.8 billion on the operations of corporations under the Ministry of Production and resultantly, the inefficiency of public sector has deprived the national exchequer oflarge amounts of funds which would have contributed to the social sectors and industrial growth." "The government believes that one of principal benefits to the nation from privatization of its public assets is by the way of reduction of our debt burden. The burden of domestic and international debt can be reduced from the sale of those very assets for which the debt was created" the second Benazir government in 1993 argued. Privatization took-off earnestly in Pakistan on January 11, 1991 with the sale of Muslim Commercial Bank and seven years down the road, 90 units, including three financial institutions and a power plant had been disposed off. In addition 12 percent shares of Pakistan Telecommunication Corporation, 10 percent shares of Sui Nothern Gas Pipeline (SGNPL) and 10 percent shares of PIA have been divested. Nawaz Sharif had marked 115 units for privatization in 1991 and thus more than 90 percent of the assets so slated originally have been sold-off, without making the slightest dent in the foreign debt and budget deficit or achieving the stated objectives of privatization. Yet officials and government leaders continue to hammer the point that the accumulated debt and budget deficit could be decreased through accelerated privatization. 29
How to Change a Lemon into an Orange Privatization in Pakistan is classic example of corrupt politicians and ever-corrupt bureaucrats working in concert to turn a lemon into an orange. This is how they did it. A commission headed by N M Uqaili, chairman PICIC and constituted by Zia ul Haq to study the state of the State enterprises recommended in 1984 that " it should be the declared policy of the government to denationalize sick units." Immediately after coming into power in 1988, Benazir government engaged Rothschild and Sons to prepare a privatization plan who recommended widespread Thatchian-style privatization through stock exchange adn identified 14 units for privatization in two phases. Bhutto also employed consortium of Morgan Grenfell and Sidat Hyder to prepare plan for the privatization of Sui Southern Gas Company and Messers Fergusen for Muslim Commercial Bank. However her government could only privatize ten percent shares of PIA before it was dismissed by President Ishaq on August 6,1990. Thus when Nawaz Sharif came into power in Oct 90, he inherited considerable spade work and infrastructure to launch priatization in an orderly manner. But he did his own game plan for privatisation. A Disinvestment and Deregulation Committee, set up by his government in Nov 90 recommended that " the govenmnet should completely retire from the production of industrial goods" and identified 105 industrial units for immediate privaitization. On Jan 22, 1991, the govenment constituted a privatization commission whose terms of reference incluede " total or partial privatization of public sector industries and enterprises and ensure widest possible participation, to review and recommend measures for revival and rehabilitation of those industries which were close and shut down under the administerative control of the nationalized commercial banks." The commission identified 115 units for privatization. By Oct 1993 when Nawaz government was booted out of power, the privatization commission had privatized 68 units including two banks. The second Bhutto government expanded the list of units marked for privatization. A major addition was Oil and Gas Development Corporation (OGDC) for which Hong Kong and Shanghai Bank was appointed financial Advisor but plan for this privatization did not materialised because of the objections raised by Farooq A Leghari, then President of Pakistan. When Bhutto was dismissed in Nov 96, a total of 84 industrial units and three financial institutions had been sold, with only 24 units from the original 1991 list left on the Privatization Commission's platter. On September 16, 1997, Khawaja Asif; Chairman Privatization Commission told the National Assemly Standing Committee for Finance that the number of units slated for the privatization now stands at 70. However, it transpired during the 2- 30
Page 1: Who Owns Pakistan By Shahid-ur-Rahm
Page 4 and 5: G: UBL Privatization Bid ..........
Page 6 and 7: Pakistan's Robber Barons ..........
Page 8 and 9: A Brief introduction - For those wh
Page 10 and 11: Prologue "I Nawaz Sharif, do solemn
Page 12 and 13: Nawaz Sharif was not an individual.
Page 14 and 15: A white paper on " Economy under Bh
Page 16 and 17: The first Nawaz government was foll
Page 18 and 19: Another remarkable person mentioned
Page 20 and 21: Dawood lost Karnaphuli Paper Mills,
Page 22 and 23: disprove that bulk of the banking a
Page 24 and 25: perpetuated their control over the
Page 26 and 27: Kohat Cement, Dandot Cement and Tha
Page 28 and 29: Earlier in this chapter, we have li
Page 30 and 31: Insurance companies of 22 families
Page 32 and 33: Born in Rangoon, M A Rangoonwala ha
Page 34 and 35: Crescent was a joint venture of fou
Page 38 and 39: day Privatization Conference in Isl
Page 40 and 41: Independant Resource Group (IRG) of
Page 42 and 43: companies, management was to be tra
Page 44 and 45: Accelerated privatization under a f
Page 46 and 47: Finance Minister took a conscious d
Page 48 and 49: clauses and buyers have committed b
Page 50 and 51: 22nd May, 1989 suggested a strategy
Page 52 and 53: Pakistan Petroleum Limited (PPL) to
Page 54 and 55: group but thanks largely to the ala
Page 56 and 57: caretaker govt. to recover Rs 1,500
Page 58 and 59: Pakistan, had incorporated Muslim C
Page 60 and 61: Cement for Rs 137 million and Rs 18
Page 62 and 63: 5-star hotel. Bhutto who had planne
Page 64 and 65: For example, PSL is being managed b
Page 66 and 67: According to the Khalid Anwar, Burm
Page 68 and 69: also been assigned to the shelves o
Page 70 and 71: 32 Harijanss 61 - 61 33 Shafi 60.2
Page 72 and 73: 21 Sargodha 2,743 -- 22 Al-Noor 2,5
Page 74 and 75: had opened their offices in Japan,
Page 76 and 77: East, REDCO Textile Mills and Const
Page 78 and 79: 4 billion and a roaster of impressi
Page 80 and 81: The geographic location of the comp
Page 82 and 83: Haroon's great grandfather had migr
Page 84 and 85: Gujrati and tended to be organised
Page 86 and 87:
9 Karim 3 10 Hasham 2 11 Latif Jama
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At present, the Kaiser Monnoo group
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Sugar Mills and Samundri Sugar Mill
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" The days immediately after nation
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fortunes which were multiplied, in
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the pioneer Muslim industrialist in
Page 98 and 99:
According to Lawrence White, top se
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Beginning of Bad Loans Bhutto's nat
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Jang, Rawalpindi of December 14, 19
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8 Saigol 1,086 9 Naqvi 1,056 10 Zah
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10, 1997, the Supreme Court observe
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Prime Minister Nawaz Sharif will gl
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specific tax holidays. It was not c
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This decision is based on personal
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oil". It is not difficult from the
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In the fiscal year 1991-92, Messers
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21 Hussain Nawaz Sharif 3,285,6813
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The voiceless small investors have
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Chapter Four - Pakistan's Tax Web P
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28. Ushr 29. Oilseeds Development C
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political heavyweights or their hen
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Export Duties It is one of the most
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Capital Gain Tax As is evident from
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Law Authority will soon seek public
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Chapter 5 - Money and Politics Elec
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Some of the known units of Saifulla
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These charges were peanuts when vie
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In the references about Lakeview Ho
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Epilogue For several years, the peo
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One wonders how a government that c
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accustomed to buying his casual out
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141
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chemicals, synthetic fibres, cookin
Page 152 and 153:
Iqbal Saigol S. No Name Assets Turn
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In a communication to the author in
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Dewan Listed Companies S. NO Names
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conference in Islamabad, on March 2
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Listed Companies S. No Company Asse
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when the Rserve Bank of India faile
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10. Noble Computer Services (pvt) L
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Syed Maratib Ali was a well known n
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Unlisted Companies 1. Clearance and
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Akbar Hashwani 1. Hashwani Construc
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Dawood Cotton Mills was set up in 1
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5. Margalla Textile 6. Rawal Textil
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Lakhani (Lakson) Lakhanis have grow
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6 Husein Sugar 358 560 7 Shadman Te
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Unlisted Companies 1. Ibrahim Agenc
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4 B F Modaraba 16 16 5 Bawany Air 5
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Financial Assets 5 Schon Bank 1,994
Page 186 and 187:
Mian Mohammad Ismaeel Sheikh was a
Page 188 and 189:
1 Mubarik Textiles 346 119 2 Fatima
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1 K S B Pumps 343 385 2 Adamjee Pap
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Independently his group has four co
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Bibliography 1. 50 years presentati
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63. The sick industary therapy, art
Page 198:
29. Hotelier in Pakistan looks for
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