PRIME Minister Imran Khan has highlighted an issue that has all along been agitating the minds of the ordinary people ever since very inception of the concept of privatization. Chairing a meeting to review the process of privatization, he emphasized the need for disposal of non-profit making entities as it was in the best national interest, adding that this would not only lessen the burden on national kitty but also provide resources for other social and masses’ welfare-oriented projects.
Initially, the privatization programme was launched to get rid of loss-making public sector entities, some of which were dubbed as white elephants. This made sense as in a country like ours where tax collection is low we cannot afford the luxury of spending billions of rupees every year on such institutions especially when there are prospects that the private sector can better manage them and make them profitable. However, it has been observed that with the passage of time, the successive governments used privatization just to bridge budgetary deficit and in the process put highly profitable institutions on the privatization list. There were also allegations that instead of privatization of non-efficient and loss-incurring entities, the authorities concerned included lucrative institutions in the list and handed them over to blue-eyed people in a questionable manner. The present Government plans to privatize seven institutions and properties during the current year including two RLNG power plants, SME Bank, Services International Hotel, Jinnah Convention Centre, Islamabad and there are 27 other state-owned properties on the list of privatization. There are legitimate concerns by experts that in the face of economic slowdown, these assets would not fetch the right amount and therefore, these should not be sold in a hurry. Secondly, it would not be advisable to sell precious properties even if they are presently unused as these are meant for future plans and programmes of the ministries and departments concerned.
