By Naveed Miraj
ISLAMABAD: In the absence of any tough challenge and no opposition in the National Assembly, the present government has decided to accelerate the process of privatization of State Owned Enterprises (SOEs) without following proper and transparent procedure.
Sources within government circles informed this correspondent that Prime Minister Shehbaz Sharif has directed the privatization commission to complete the process of privatization of electricity Distribution Companies (DISCOs) in a matter of three months. “For this purpose, the services of “an expert” are also being hired to achieve the task at the earliest.”
The privatization of DISCOs especially of the profitable ones has been on the papers for the last many years but the task could not be accomplished due to various reasons including stiff resistance from the opposition on the non-transparent privatization process.
“But now the things are different as any move by the government is not likely to face any opposition in the national assembly due to the resignations of the PTI members,” the sources added.
The sources said that Ministry of Commerce has also been directed to assist the Privatisation Commission to privatise National Insurance Company Limited and State Life Insurance.
The sources whilst acknowledging, that the SOEs are causing huge loss of hundreds of billions of rupees to the national exchequer every year, feared the process being followed in haste for privatization is likely to be devoid of transparency.
“The most effective way to combat corruption at the SOEs is to privatize them and the privatization also helps avoid the risks of political influence.” However, they added that the present government appears to dole out the DISCOs and both the insurance companies to their front men at throw away prices for their own personal benefits.
The sources said that Privatisation Minister in order to expedite the privatisation process has managed to bring in the Secretary of his own choice.
It is pertinent to mention here that the privatisation of loss making SOEs is important on two counts: one, in order to stop bleeding of public money and secondly, as per agreements with World Bank and IMF the proceeds from privatisation would be used for debt retirement.
