Tycoon Mian Muhammad Mansha has called for the privatisation of National Bank of Pakistan (NBP), also stressing on the government to make “tough decisions”, especially in the power sector.
His remarks came during the gong ceremony that marked the listing of Adamjee Life Assurance Company Limited, a wholly-owned subsidiary company of Adamjee Insurance Company Limited, held at the Pakistan Stock Exchange (PSX) on Monday.
While addressing the gathering, Mansha, chairman of Nishat Group of which Adamjee Insurance is also a part, added that the next listing from the conglomerate could be an Islamic bank.
"Our first listing was done by my father in 1961 of Nishat Mills," he said. "Since then, it has grown to be among the largest textile industries in Pakistan.
"We see the surge in Islamic banking especially in neighbouring Afghanistan.
The next few months are important for the country: Mian Mansha
"Hopefully, our next listing would be an Islamic bank,” said Mansha, which he expects would take place in a year or two.
Deviating to the current economic conditions, Mansha added that there is a need for "change" in the country.
"The next few months are important for the country. People want change," added Mansha, without going into specifics or elaborating.
Mansha, long an advocate of privatisation, also said losses of public-sector companies are not justifiable.
"We need to privatise things including the National Bank."
On power sector issues, especially pertaining to growing circular debt, Mansha said it is in a state of mess.
“I think the transaction between K-Electric and Shanghai Electric Power Company should go through,” said Mansha.
"Discos, Gencos should be privatised. Look at the amount of money we are losing. This is not sustainable."
Last month, Business Recorder reported that Pakistan’s energy sector circular debt flow continues to grow with an average growth of about Rs33 billion per month recorded during the first six months (July-December) 2021-22.
Total circular debt has reached Rs 2.476 trillion during first six months of current fiscal year as compared to Rs 2.303 trillion in the same period of 2020-21, with total growth of Rs 196 billion as compared to Rs 152 billion during July-December 2020-21, stated the report.
Meanwhile, Mansha said that he expects no change in the policy rate in the upcoming Monetary Policy Committee (MPC) meeting of the State Bank of Pakistan (SBP), to be held on Tuesday, March 8.
Adamjee Life Assurance Company IPO
Najam Ali, CEO Next Capital, while talking about the listing, said that it was not an easy transaction given the current market conditions.
“Market conditions have deteriorated a lot due to overall conditions in Pakistan as well as abroad,” Ali said.
“We are in a very difficult phase of the economic cycle right now, Pakistan faces very difficult challenges in the next eight to 10 months. I am hopeful that the capital market will take off once the current difficult period is over.
Ali also called for a reduction in tax burden on the corporate sector.
“There is 29% corporate tax rate, and then you have a 15% tax on dividend, which is effectively 40% on the shareholder of the company. The corporate tax rate and a level playing field with other asset classes are extremely critical,” he said.