Buyers might be able to see how the seller operates by the simultaneous revelation that the Privatisation Commission was considering Etisalat’s offer of $250 million against the $800 million that it still owes on the $2.59 billion sale. This shows that if the government is desperate to be paid anything, it will take what it can get, no matter how big the loss to the citizenry, which owns the property which is being sold off. Perhaps it is as well that no big-ticket items are being sold, with K-Electric providing another example of how such sales are mismanaged. K-Electric’s privatisation was botched, and the update given at the presser was not hopeful. It seems that the transfer to the new buyer, the Shanghai Electric Power Company has run into difficulties, as various ministries wrangle over how much each owes to K-Electric. PSM’s privatisation was also problematic, and the progress report given was not such as to inspire confidence
While Privatisation Minister Mohammad Mian Soomro assured that the rules of the Public Procurement Regulatory Authority, court judgements and the Privatisation Ordinance would be fully followed, an old banker like him should have also assured that due diligence would be conducted. It is particularly important that these sales do not attract the charge that cronies of high officials have been obliged. The offers received for two power plants may inspire confidence in the Privatisation Commission, but it might well be sharks sniffing out a potential kill. There are only five loss-making enterprises of 18 on the privatisation list. They must be sold off with more urgency than the government says it is showing. It should not be forgotten that their losses will be met by tax money.
Publish in www.pakistantoday.com.pk 30 January 2020