Introduction
In 1952 , Pakistan Industrial Development
Corporation was established
Main aim was to boost up industrial development
Privatization of State Owned Enterprises {SOE} became an important instrument of economic
policy
became an important instrument of economic policy
Privatization of SOEs are multi-faceted, complicated, politically and socially sensitive
process
It takes care of all stakeholders
Helps to promote capital , goods and labor markets in the country
The privatization commission is entrusted with selling government property
It may also offer concessions or the right to operate publicly owned assets
In November 2000, Ministry of privatization was created. The chairman of PC was appointed as minister for privatization
PRIVITISATION TEAM
The staff of privatization comission comprise of civil service officers and transaction
managers
It currently employs 11 civil service officers and 11 transaction managers
Role of transaction managers
hiring external consultants
communicating with regulators and relevant ministry staff
providing legal and accounting suppor
PRIVATIZATION TEAM
THE BOARD OF THE PRIVATIZATION COMMISSIOn
COMMISSIOn
CABINET COMMITTEE ON
PRIVATIZATION
y Created in 1991.
y Headed by the prime ministe
PRIVATIZATIONPROCESS
IDENTIFICATION
Identification of entity or list of entities to be privatize
HIRING OF A FINANCIAL ADVISOR
DUE DILIGENCE
For major privatizations, the financial advisor carries out this
function
VALUATION OF PROPERTY
NATIONALIZATION VERSUS PRIVATIZATION
Zulfikar Ali Bhutto on December 21, 1971 and on
January 1, 1972 nationalized 31 key industrial units
Nationalization of industry in iron and steel sector, basic
metals, heavy engineering, heavy electrical etc
The banning the managing agency system under which
companies were appointing persons to be sole
purchasers for sale or distribution
The corporate sector was controlled by a handful of
managing agents who perpetuated their control over the
affairs of the companie
The objective of the government was for a good cause but
could avail the fruits of it.Nationalization causedadministrative nightmare and wide spread publicresentment
Privatization on the other hand is a better and efficient
method of running industries
Privatization has been a key component of structural
reformprograms in both developed and developing
economies
Generally believed that privatization leads to a fall in
employment and wages at least in the short term, among
others, point out that privatization may even increase
employment
Graphically present the dynamics of employment changesover the three periods, i.e., pre-privatization, privatization andpost-
privatization, and show that the level of employment
HISTORY
OF
PRIVATIZATION
POLICIES
Privatization policies during the 1970
Privatization policies during the 1980
Privatization during 1988-90
Privatization during 1991-93
Privatization during 1999-2008
Former prime minister Shaukat Aziz announced that
country earned $6.41 bn
Record looting of about $10.76 billion to place when 51%
shares of habib bank were sold to Aga Khan Fund.
Another was the privatization of 26% shares of Ptcl to
Etisalat.
Pak- saudi fertilizer was handed to Fauji foundation in
2002 for just 8 billion. Pak Arab fertilizer was handed to
Arif Habib Group for only 13 billion.
ACHIEVEMENT OF PRIVATIZATION
PRIVATIZATION AND LABOR
Among the factors of production, labor occupies a very special
position
In most of the cases the government has encouraged the
workers management group to purchase the privatizing unit by
putting competitive bid
Most of the units transferred to the workers group have been
very successful
However, privatization of SOEs is an important instrument to
remove most of the ills of the economy.
Government gives high importance to the genuine interests of
the workers and wants to make them a partner in its endeavor
to reform the economy.
CONCLUSION
It has been institutionalized with the passage of time and
rules and procedures have been defined for transparent
and competitive privatization process.
Steps are being taken to expedite the privatization
process as well as to rationalize the macro economicenvironment for speedy economic development of thecountry
