Privatization .28Spontaneous phase: 1989.E2.80.931993.29 Privatisation in Pakistan

1 privatization (spontaneous phase: 1989–1993)

1.1 privatization phase (1993–1999)
1.2 privatization (intensified phase: 1999–2008)
1.3 public perception
1.4 adversary opposition

privatization (spontaneous phase: 1989–1993)

the privatization programme launched in punjab had higher gdp growth province of pakistan.

the momentum , demands denationalization gained currency towards end of government of prime minister zulfikar ali bhutto , pakistan peoples party under intensified nationalization programme had government-ownership management in private industries of pakistan; had built strong public-sector priority on cement, steel , fertilizers. after end of government of peoples party, white paper issued general zia-ul-haq s government, followed setting commission under pakistan industrial credit , investment corporation (picic) chairman n.m. ukailie. however, 3 industries returned rightful owners, namely eittefaq group of industries mian mohammed sharif whilst others remains under government controlled.

as aftermath of 1988 general elections, benazir bhutto , peoples party returned power, promising denationalized , replace industrialization programme means other state intervention. controversially benazir bhutto did not carried out denationalization programme or liberalization of economy. no nationalized units privatized, few economic regulations reviewed. partial privatization began kick off chief minister of punjab province nawaz sharif presided liquidation of many industrial units put under provisional government private sector. industries based on punjab government ownership returned rightful owners on mutual understanding; prices on units returned industrialists still kept top secret provisional government.

nawaz sharif.

a large-scale privatization programme launched on 22 january 1991 primary economic policy prime minister navaz sharif came national power after securing flight-winning victory in 1990 general elections. privatization programme inspired , influenced in nature after witnessing success of privatization in great-britain british prime minister margaret thatcher. first phase of privatization program covered half of public sector industries in terms of total employment, , programme in direct response pakistan peoples party , zulfikar ali bhutto, , instance sharif s privatization programme swift nationalization programme. during course of first phase, sharif presided denationalization of banking sector , industries private sector, starting first mcb limited. sharif termed privatization programme turning pakistan (south) korea encouraging greater private saving , investment accelerate economic growth. .

the second phase promulgated sartaj aziz goal transform enterprises profit-seeking businesses, not depended government subsidies survival. mega-energy corporations such water , power development authority (wapda) , karachi electric supply corporations, , pakistan telecommunication corporation set off private sector. 1990–93, around 115 industrial units hastily privatized, including privatization 2 major banks, 68 industrial units , 10% shares of sui northern gas pipelines limited.

the privatization programme came great surrounding controversies lacked competition programme largely controlled favored insider. recklessness , favoritism shown in privatization of industrial , banking units prime minister nawaz sharif become hallmark , rise of strong business oligarch have concentrated enormous assets, further increasing wealth gap in pakistan , contributing political instability.

privatization phase (1993–1999)

in 1992, leader of opposition in parliament, benazir bhutto, vehemently criticized whole policy measure program @ public circles. while commerce minister faisal hyatt , finance minister sartaj aziz enthusiastically projected privatization success phase , benazir bhutto had, touch of drama in state parliament, maintained while 1 brother selling, other buying.

after 1993 general elections, second phase of privatization programme began in 1993 under disciplined macroeconomics policy of prime minister benazir bhutto. programme aimed capitalize on rising business oligarch class programme suffered great difficulties , problems inside peoples party. second phase involves privatization of financial institutions, several telecommunications corporations, thermal power plants, oil , gas sectors. benazir s government did not privatize state corporations, collecting large revenues abroad; industries privatized @ brink of financial collapse.

the first attempt made privatize united bank limited proposal met great hostility workers union , opposition. proposals made put private-ownership pakistan railway rebuffed prime minister benazir bhutto quoted: railways privatization black-hole of government. please never mention railways me again. economic growth declined when embargo began bite government of benazir bhutto. end of 1996, ~20 industrial units, 1 financial institution, 1 electric power plant , 12% shares of pakistan telecommunications ltd. privatized benazir bhutto.

the second phase remained continued until 1998 when abruptly ended prime minister nawaz sharif after imposing economic emergency after ordering perform capability of nuclear deterrence in response indian nuclear aggression. stock exchange, stock markets , second phase of privatization programme halted prime minister nawaz sharif until government ended in 1999.

privatization (intensified phase: 1999–2008)

shaukat aziz.

after end of government of prime minister nawaz sharif, pervez musharraf invited shaukat aziz take control of declining economy of pakistan. gdp rate had declined 10.0% in 1980s 3.6% in 1999, foreign debt increased 44% compared 1986. major economic reforms introduced shaukat aziz first consolidated industries under 1 platform , restructured them before setting them privatization market. numbers of controversial sales tex enforced shaukat aziz, on import duties; , based on these reforms, patronage-based industries remained under serious threat , privatization discussion began take place on usual based. aziz consistently worked on restructured industries , provided vital leadership , economic relief after 2001 played important role in strengthening patronage-based industries financially , physically.

in 2004, aziz became prime minister , initiated intensified privatization programme in order grow gdp rate annually.

aziz forcefully , aggressively pushed 100% privatization of state-owned corporations while virtually planned privatized 85% of banking sector. starting 2003 until 2007, aziz privatized 80% of banking industry private-ownership enterprises, while privatizing numbers of shares of pakistan international airlines , other mega-corporations public circles.

nothing sacred... packaging our companies. (....).... these state-owned corporations (soes) have been well-run past few years.... , offering them investors on world....!

the intensified privatization programme led economic boom of pakistan s economy @ range of 8.96%–9.0% in 2004.

intensified privatization policies had major impact on public sector organization diminished privatization of state-owned corporations. prime minister aziz defended privatization programme maintained these institutions viable while on verge of collapse. . aziz s privatization programme subsequently improved country’s growth rate 6.4%—8.6% year. inflation rate dropped 3.5% in last 3 years against 11–12% in 1990. however, in end of 2007, aziz s privatization programme suffered major set halted privatization programme in country. supreme court halted privatization of pakistan steel mills after transferring inquiry fia nab, while issued standing orders keep steel mills under nationalization programme. proceedings , supreme court s decision halted aziz s intensified , aggressive privatization programme @ end days of tenure.

public perception

the privatization programme still marks question of big controversies. in public circles, has generated more heated debates perceived have more negative impact on civil society. general perception remains highly contentious , polarizing issue in civil society, gearing negative sentiments among population, including continued injection of public money in many privatized entities , less expected improvement in services. although, programme produced relatively faster , efficient way of promoting competition , enhancing growth, on other hand, programme experienced exponential increase in unemployment, reducing access of workers class basic needs of life , contributed in declining social status of workers class in poor poorer.

but on other hand, significant support privatization programme has been raised in media. in editorial written in dawn, argues privatisation programme has been key constituent of structural reform programmes in both, developed , developing economies, in order achieve greater microeconomic efficiency opposed macroeconomics. overall, gdp rate grows smoothly privatization programme remains in effect opposed nationalization programme had dropped gdp growth rate of pakistan, dawn maintained. major proposals made privatise major , most-profitable industries of pakistan, namely pakistan railways (pr) express tribune argued national railways condition has gone bad worse under government ownership, , privatisation programme can save railways creation of sense of competition drive improvement.

adversary opposition

despite success, public sector organizations, labor , workers unions remained extremely hostile towards privatization programmes. in 2005, major demonstrations , worker s revolt took place in islamabad ptcl workers unions action committee, in attempt privatized pakistan telecommunication company ltd (ptcl). despite demonstrations state-corporation privatized shaukat aziz resulted in workers’ losing jobs.

in 2012, unsuccessful attempt carried out current government of pakistan peoples party when government sought privatize mega-state corporations, particularly power sector; major nationalized industries such wapda, iesco, tesco, pepco proposed finance ministry privatize power distribution companies. major worker s strike initiated central labour unions, , after receiving criticism, government halted privatization programme of energy sector, , nationalized remaining power sector industries due public pressure.

the pakistan peoples party s intellectuals remains skeptical privatization programme , targeted controversial implementation on numerous occasions. peoples party maintained elitist or top-notch educational system exceedingly comprises private sector’s foreign affiliated schools , universities, has built sole source of producing proficient minds. while on other hand, privatized madrassah system of education has been patronize different sects of religion, patronize different sects of religion, , further exploited source of religious extremism , associated terrorist outfits , offshoot. private sector education system negative effects of private sector education , hashas created disparity between rich , poor.

dr. professor athar maqsood of school of business of national university of sciences , technology (nust), set forward argumentative thesis there 2 reasons behind why privatization has not been successful perceived economic reasons , socio-psychological , political reasons. in 1990s, privatized enterprises have laid off employees introducing schemes golden hand shake.