Who Owns Pakistan - Yimg

Independant Resource Group (IRG) of United States to complete it in a short
period of time. In last seven years only Kod Addu Power Plant has been
privatized for 215 million dollars. However only 153 million dollars were deposited
in Government Accounts after deduction of fees of Consultants and other
conditions attached to the sale.
Within installed capacity of 13600 MW, WAPDA is proposed to be split into 21
companies comprising one company each for eight area electricity boards, ten
thermal projects, two under construction hydel projects at Chashma and Ghazi
Brotha and a national grid company. This is gigantic task for Privatization
Commission, considering scale of corruption of WAPDA and performance of the
commission in the deal with Kot Addu Power Company.
3. Karachi Electric Supply Corporation. With an installed capacity of 16900
ME, it is proposed to be privatized as single entity. According to report in daily,
The News, Islamabad of 15th April 98, the company is facing a short fall of RS 32
billion and has decided to defer all its foreign exchange liabilites of RS 10.8
billions due to aggravating financial crisis. In 1996, privatization commission have
assessed KESC total assets at RS 33 billion. It has debt liabilities of 22 billion.
4. United Bank Limited. On April 12, 1998 the State Bank of Pakistan that it was
accepting a plea of new UBL management to inject RS 21 billion into the United
Bank to prepare it for privatization. The amount to be invested in UBL is in
excess of total proceeds of privatization of 90 industrial and financial units of last
seven years and makes the mockery of the process of privatization.
5. Habib Bank Limited. The team of 14 Citibankers who have taken charge of
Habib Bank at an annual cost of Rs 150 million per anum are reported by Sultan
Ahmad to have stated that the liabilities or bad loans of government banks are far
more than acknowledged. Opposition leader Benazir Bhutto, in a letter to
Governor State Bank alleged that Habib Bank has allowed all the defaulters to
absolve themselves of any claim, by paying 25 % of the outstanding amounts
which would greatly reduce the value of bank. The fact was confirmed by Habib
Bank in a clarification reported by the newspapers on April 15, 1998.
Pakistan State Oil, Oil and Gad Development Corporation, Pakistan Petroleum
Limited, Sui Northern and Sui Southern Gas Companies have a circular debt of
Rs 70 billion, in addition to their own individual debts. PIA has total short term
and long term external liability of 360 million US dollars. All the other units
marked for privatization are sunk up to the neck, into quagmire of debt and their
financial position is deteriorating because no serious effort is being made to
arrest it. In these circumstances, the assessment that privatization would yield
10-80 billion US dollars is nothing but self-deception.
While estimates of proceeds from privatization are muddy and could be less than
9 to 10 billion dollars estimate of Khawaja Asif, the Commission has appointed
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