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