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