Loss-making PSEs: business community leader advocates sell-off

KARACHI: Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Tuesday said the government is taking tough decisions as its political death therefore it is important to provide confidence to the government in this difficult time. An annual loss of Rs600 billion can be avoided by selling failed government institutions, he said.

Mian Zahid Hussain said that there is a severe shortage of capital in the country, but despite this, billions of rupees are being wasted on failed government companies.

Talking to the business community, the veteran business leader said that if these failed entities cannot be sold immediately, it is possible to avoid the loss of hundreds of billions of rupees by shutting them down.

He said that strict decisions regarding the theft of electricity and gas and line losses have become inevitable for national security.

The experiment of providing cheap goods to the public through utility stores has also failed and is causing disrepute for the government therefore poor should be given direct subsidy, he added.

The reason for controlling the value of the dollar is that currently the dollar is being sold at three different rates through the inter-bank, open market, and reference, due to which exports and remittances are likely to decrease by 8 to 10 billion dollars this year.

The business leader noted that stopping imports will reduce the current account deficit, but it is likely to reduce the FBR’s revenue by Rs600 to Rs800 billion therefore a mini-budget will serve no purpose except for cornering the masses.

Delays in the implementation of IMF-recommended decisions are widening payments and income imbalances. Unemployment is increasing and the suffering of the people is increasing, he noted.

Mian Zahid Hussain said that friendly countries and international organizations are getting frustrated with Pakistan’s record of breaking promises and delays in important decisions, so their tone and demands are increasing.

There is no doubt that all their demands are necessary for the better future of Pakistan which will help us to avoid begging and become sustainable.

The government institutions are not delivering which is increasing the anxiety of the people who want better health, education, water, and employment facilities.

Copyright Business Recorder, 2023