Privatization of PTCL: Privatization and Re-regulation of PTCL


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These slides cover the whole process of privatization of ptcl. And clearly describe the situation of ptcl before and after privatization.It consist of performance analysis. It help to understand the privatization of ptcl is good or bad decision. it also suggest alternatives to imprive the current situation.

Published in: Economy & Finance
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Privatization of PTCL: Privatization and Re-regulation of PTCL

  1. 1. Presented By: Umair Ahmed Roll No: 164 B.B.A (Hons.) 7 th Evening Presented To: Department of Management sciences University of Education Okara Campus Impacts of Privatization on PTCL
  2. 2. <ul><li>Outline </li></ul><ul><li>Research Question </li></ul><ul><li>Goals of Research </li></ul><ul><li>What is Privatization? </li></ul><ul><li>Etisalat </li></ul><ul><li>Analysis And Findings </li></ul><ul><li>Conclusion And Recommendations </li></ul>
  3. 3. <ul><li>Research Question </li></ul>What is impact of privatization on PTCL?
  4. 4. <ul><li>Goals of Research </li></ul><ul><li>Impact on Performance </li></ul><ul><li>Impact on Competition </li></ul>
  5. 5. <ul><li>What is Privatization? </li></ul>“ It is the process of selling government assets to private buyers” . Privatization is process of transferring ownership of a business, enterprise, agency or public service from the public sector (government) to the private sector (business). In a broader sense, privatization refers to transfer of any government function to the private sector including governmental functions like revenue collection and law enforcement.
  6. 6. <ul><li>Etisalat </li></ul>The UAE based company that purchase 26% of shares with management rights. It’s Vision: A world where people’s reach is not limited by matter or distance. It’s Mission: To extend people’s reach
  7. 7. <ul><li>Analysis And Findings </li></ul><ul><li>Privatization Process of PTCL </li></ul><ul><li>Impacts of privatization on PTCL </li></ul><ul><ul><ul><ul><ul><li>Impact on Performance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Impact on Competition </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Impact on Employment </li></ul></ul></ul></ul></ul>
  8. 8. <ul><li>Privatization Process of PTCL </li></ul><ul><li>In 1991 Govt decide privatize PTCL, by selling 26% shares with management rights. </li></ul><ul><li>In 1994 12% of its shares are divested. </li></ul><ul><li>In 1994 Govt issued 1 million exchangeable vouchers, equal to 100 million shares of Rs.10each for Rs.3 billion . </li></ul><ul><li>In September 1994 five million vouchers has been issued to 31 international investors for $ 900 million. </li></ul>
  9. 9. <ul><li>Privatization Process of PTCL </li></ul><ul><li>In 1997 notes of $150 million are issued to international investors which are convertible to “A” class ordinary shares, which are equal to 3.3% of total share capital. </li></ul><ul><li>In 1998 Govt hire M/s Goldman International to provide advisory services. </li></ul><ul><li>According to M/S Goldman Report, PTCL handed over to Etisalat, That purchase 26% shares with management rights. </li></ul>
  10. 10. <ul><li>Impacts of Privatization on PTCL </li></ul><ul><ul><ul><ul><ul><li>Impact on Performance </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Impact on Competition </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Impact on Employment </li></ul></ul></ul></ul></ul>
  11. 11. <ul><li>Impact on Performance </li></ul>Liquidity
  12. 12. <ul><li>Continued... </li></ul>Leverage
  13. 13. <ul><li>Continued... </li></ul>Profitability
  14. 14. <ul><li>Continued... </li></ul>EPS
  15. 15. <ul><li>Continued... </li></ul>
  16. 16. <ul><li>Continued... </li></ul>
  17. 17. <ul><li>Continued... </li></ul>Dividend paid in five years
  18. 18. <ul><li>Impact on Competition </li></ul><ul><li>With privatization of PTCL may competitors entered into the market and PTCL’s market share is day to day decreases, due to the following reasons: </li></ul><ul><ul><li>People switch toward cellular phones </li></ul></ul><ul><ul><li>WLL users switch toward wateen, world call and Tele Card because of better quality. </li></ul></ul><ul><ul><li>Customer services are better then PTCL </li></ul></ul>
  19. 19. <ul><li>Continued... </li></ul>
  20. 20. <ul><li>Continued... </li></ul>However it is in favor of PTCL that it still has almost monopoly in landline subscribers
  21. 21. <ul><li>Impact on Employment </li></ul>Before Privatization : PTCL has approx. 65000 employees before privatization. The main workforce of the PTCL is unqualified and unskilled. About 50% employees are under graduate.
  22. 22. <ul><li>Continued... </li></ul><ul><li>After privatization the following decisions have taken by management: </li></ul><ul><ul><li>Launch VSS (voluntary separation scheme), under this scheme PTCL has to pay a lump sum amount to employee who is willing to leave. </li></ul></ul><ul><ul><li>Step forward to facilitate equal employment opportunities. </li></ul></ul>
  23. 23. <ul><li>Continued... </li></ul><ul><ul><ul><li>Inducting fresh blood from the market </li></ul></ul></ul><ul><ul><ul><li>T & D department organized a comprehensive six months “Urgent Training Needs” program in technical and managerial fields to enhance soft skills. </li></ul></ul></ul>
  24. 24. <ul><li>Conclusion </li></ul><ul><li>Privatization of PTCL have both positive and negative impacts. </li></ul><ul><li>Some negative impacts are: </li></ul><ul><ul><li>The number of subscribers are decreases year to year because of, poor quality of services, old technology and higher prices. </li></ul></ul><ul><ul><li>PTCL is in the process of layoff and provides a huge some for this purpose while competitors have skilled Personnel and offers attractive packages. </li></ul></ul>
  25. 25. <ul><li>Continued </li></ul><ul><li>Besides these negative impacts PTCL also have some positive impacts: </li></ul><ul><ul><ul><ul><li>PTCL introduced new technology in some areas. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Improve customer services </li></ul></ul></ul></ul>
  26. 26. <ul><li>Recommendations </li></ul><ul><li>I Recommend PTCL to: </li></ul><ul><ul><ul><li>To Improve quality of services </li></ul></ul></ul><ul><ul><ul><li>Introduce new products </li></ul></ul></ul><ul><ul><ul><li>Introduce new technology </li></ul></ul></ul><ul><ul><ul><li>Improve customer services </li></ul></ul></ul>