The document discusses key issues in Pakistan's industry, including the growth of small-scale sectors in textiles and manufacturing in the 1950s-1970s, issues affecting small-scale industries like lack of access to credit, and the decline of Pakistan's textile industry compared to other countries despite its large cotton production. It also examines debates around the efficiency and privatization of Pakistan's public sector industries.
Economic challenges face by Pakistan"s economy and their solutions (1)Muhammad Zubair
Pakistan's economy faces several challenges including a large debt burden requiring significant debt servicing payments, balance of payments deficits as imports exceed exports, low domestic savings rates, government spending exceeding revenues, a shrinking share of world trade, chronic energy shortages exacerbated by high load shedding, and damage from frequent natural disasters. Addressing these economic issues will be important for Pakistan to achieve greater economic stability and growth.
Pakistan's economy grew by 5.8% in 2007-08, below the target of 7.2% due to weak performance in the agriculture and manufacturing sectors. GDP per capita grew significantly over the past six years due to rising remittances and economic growth. However, inflation increased to 10.3% while the current account deficit widened sharply. Overall the economy showed resilience despite challenges but fell short of targets on several fronts such as GDP growth and tax revenue collection.
Pakistan's trade structure involves exports, imports, and remittances. Exports have declined in recent years for food and textiles but increased for petroleum. Imports are growing faster than exports due to China-Pakistan Economic Corridor projects. China, UAE, and Saudi Arabia make up over 50% of Pakistan's imports. Remittances from workers abroad have decreased slightly and mainly originate from Saudi Arabia, UAE, and other GCC countries. The government is taking steps to improve exports and manage imports and remittances.
The document discusses the industrial sector in Pakistan. It provides background on Pakistan's negligible industrial base at partition in 1947. Since then, the government has focused on developing manufacturing through various policies and incentives. Key sectors discussed include textiles, fertilizers, cement, sugar, sports goods, telecommunications, and automobiles. Challenges to industrial growth are also reviewed, such as infrastructure gaps, political instability, and lack of technical skills and education. Overall, the industrial sector contributes around 24% to Pakistan's GDP but faces obstacles to achieving its full potential.
The document summarizes Pakistan's government debt from 1977 to 2018. It discusses debt under military dictatorships from 1977-1988 and 2001-2008 which saw high levels of foreign aid. Debt increased from internal and external factors like wars, nuclear tests, and natural disasters. Debt also grew under democratic regimes from 1988-1999 and 2008-2013 due to economic mismanagement, political instability, and a declining tax base. The document concludes with suggestions like tax reforms, reducing budget and trade deficits, and maintaining macroeconomic stability to address Pakistan's debt issues.
This document provides an overview of privatization in Pakistan. It discusses three generations of privatization that have occurred since the 1960s, with the objectives of strengthening the private sector, improving state-owned enterprise efficiency, and reducing subsidies. More than 165 transactions have generated over $9 billion in proceeds. The Privatization Commission oversees the process of evaluating, restructuring and selling state assets to private investors. Several sectors have been fully or partially privatized, including banking, fertilizers, cement and automobiles. Challenges remain around regulatory frameworks, financial crises, and managing public interests for certain industries. The document recommends maintaining transparency and public awareness to help further privatization efforts.
The document discusses key issues in Pakistan's industry, including the growth of small-scale sectors in textiles and manufacturing in the 1950s-1970s, issues affecting small-scale industries like lack of access to credit, and the decline of Pakistan's textile industry compared to other countries despite its large cotton production. It also examines debates around the efficiency and privatization of Pakistan's public sector industries.
Economic challenges face by Pakistan"s economy and their solutions (1)Muhammad Zubair
Pakistan's economy faces several challenges including a large debt burden requiring significant debt servicing payments, balance of payments deficits as imports exceed exports, low domestic savings rates, government spending exceeding revenues, a shrinking share of world trade, chronic energy shortages exacerbated by high load shedding, and damage from frequent natural disasters. Addressing these economic issues will be important for Pakistan to achieve greater economic stability and growth.
Pakistan's economy grew by 5.8% in 2007-08, below the target of 7.2% due to weak performance in the agriculture and manufacturing sectors. GDP per capita grew significantly over the past six years due to rising remittances and economic growth. However, inflation increased to 10.3% while the current account deficit widened sharply. Overall the economy showed resilience despite challenges but fell short of targets on several fronts such as GDP growth and tax revenue collection.
Pakistan's trade structure involves exports, imports, and remittances. Exports have declined in recent years for food and textiles but increased for petroleum. Imports are growing faster than exports due to China-Pakistan Economic Corridor projects. China, UAE, and Saudi Arabia make up over 50% of Pakistan's imports. Remittances from workers abroad have decreased slightly and mainly originate from Saudi Arabia, UAE, and other GCC countries. The government is taking steps to improve exports and manage imports and remittances.
The document discusses the industrial sector in Pakistan. It provides background on Pakistan's negligible industrial base at partition in 1947. Since then, the government has focused on developing manufacturing through various policies and incentives. Key sectors discussed include textiles, fertilizers, cement, sugar, sports goods, telecommunications, and automobiles. Challenges to industrial growth are also reviewed, such as infrastructure gaps, political instability, and lack of technical skills and education. Overall, the industrial sector contributes around 24% to Pakistan's GDP but faces obstacles to achieving its full potential.
The document summarizes Pakistan's government debt from 1977 to 2018. It discusses debt under military dictatorships from 1977-1988 and 2001-2008 which saw high levels of foreign aid. Debt increased from internal and external factors like wars, nuclear tests, and natural disasters. Debt also grew under democratic regimes from 1988-1999 and 2008-2013 due to economic mismanagement, political instability, and a declining tax base. The document concludes with suggestions like tax reforms, reducing budget and trade deficits, and maintaining macroeconomic stability to address Pakistan's debt issues.
This document provides an overview of privatization in Pakistan. It discusses three generations of privatization that have occurred since the 1960s, with the objectives of strengthening the private sector, improving state-owned enterprise efficiency, and reducing subsidies. More than 165 transactions have generated over $9 billion in proceeds. The Privatization Commission oversees the process of evaluating, restructuring and selling state assets to private investors. Several sectors have been fully or partially privatized, including banking, fertilizers, cement and automobiles. Challenges remain around regulatory frameworks, financial crises, and managing public interests for certain industries. The document recommends maintaining transparency and public awareness to help further privatization efforts.
This document outlines the history and impact of privatization in Pakistan. It defines privatization as transferring enterprises from public to private sector. Pakistan began privatizing state-owned enterprises in the 1990s under Prime Minister Nawaz Sharif and continued efforts under Prime Ministers Shaukat Aziz and Pervez Musharraf. Privatization improved Pakistan's GDP growth rate and reduced inflation. However, some industries like Pakistan Steel Mills faced issues with full privatization. The document concludes that privatization generates significant revenue for the Pakistani government to use on other programs.
Pakistan's economy faces several challenges:
- It imports more than it exports, consuming more than it saves, while government spending exceeds revenues.
- Its share of world trade is shrinking while social indicators lag behind countries with similar incomes.
- It struggles with energy and water shortages due to inefficiencies and unequal distribution.
- Political instability, security issues, and poor law and order deter investment and economic progress.
To strengthen the economy, Pakistan must boost exports over imports, increase domestic savings and investment, improve social sectors like education and healthcare, address energy and water shortages, and ensure greater political stability and security to attract more investment.
The economy of Pakistan has the 27th largest GDP by purchasing power and 45th by nominal GDP. Pakistan has a semi-industrialized economy based around textiles, chemicals, food processing, agriculture and other industries. In its early decades after independence in 1947, Pakistan experienced average annual GDP growth of 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. More recent decades have seen lower growth rates and challenges including high fiscal deficits, inflation, declining exports, and issues with governance, infrastructure, and security. Major industries include textiles, mining, cement, telecom, sports goods, sugar, and fertilizer.
Causes and removal of industrial backwardness in pakistannight seem
The document discusses the major causes and remedies for industrial backwardness in Pakistan. It identifies 27 causes which are grouped into 4 categories: historical, economic, social, and political. The causes include the colonial policies of the British, lack of infrastructure, low investment, political instability, wars with India, and more. To remedy industrial backwardness, the document suggests improving education, providing tax incentives, developing infrastructure, ensuring political stability, and increasing investment in industries.
This document discusses privatization in Pakistan, including:
- Privatization involves transferring public assets, operations, or activities to private enterprise to generate growth and competition.
- Pakistan launched a privatization program in 1991 and another in 2004, privatizing over 80% of industries by 2007 to improve GDP growth and attract foreign investment.
- The document examines case studies of Pakistan's first privatized bank and PTCL telecom, finding mixed results from privatization. While the bank improved performance, PTCL saw profits decline after privatization.
- Recommendations include the government re-purchasing PTCL shares from its private owner to re-nationalize the company and help improve its performance.
Energy crisis in pakistan and effect on economySami Swati
Pakistan faces an energy crisis due to insufficient domestic energy production and high energy consumption. Electricity production of 8,500 MW falls far below demand of 13,500 MW. The energy crisis negatively impacts the economy through unemployment, reduced industrial and agricultural production, and higher electricity prices. The document recommends the government overhaul Pakistan's energy infrastructure, develop renewable resources, utilize domestic coal reserves, and initiate agreements for large-scale energy projects to improve the supply situation and reduce dependence on imported fuels.
Imports of pakistan & its impact on economyAyaz Masood
Pakistan imports far exceed its exports, contributing significantly to its trade deficit. Its top imports are refined petroleum, crude petroleum, palm oil, and scrap vessels from countries like the UAE, China, and Saudi Arabia. Machinery, automobiles, iron and steel, and crude oil also constitute major imports. Reducing imports and establishing domestic supply chains could help Pakistan utilize more of its natural resources to boost local industry and economic opportunities.
This Pakistan Studies presentation is created by the students of C@SE Islamabad and it gives an overview of the economic issues of the Islamic Republic of Pakistan
The document summarizes key information about Pakistan's economy. It states that Pakistan has the 26th largest economy by PPP and 44th largest by nominal GDP. The economy has grown at an average of 4.14% annually and per capita income is $3,144, ranking 140th globally. However, Pakistan faces challenges such as a low savings rate, high imports, energy shortages, and security issues that impact the business environment.
Presentation on China Pakistan Economic Corridor. Cpec is initiative of Pakistan and China to reduce the travel costs and improve the economy of both countries.
Ayub Khan came to power in 1958 after a military coup. He aimed to rapidly industrialize Pakistan's economy and encourage private sector growth. Agricultural reforms like high-yielding seeds boosted farm output. Industrial policy focused on import substitution. Economic growth averaged 6.25% annually during Ayub's rule. However, foreign aid dependence rose and industrial protection policies made some industries inefficient. The 1965 war with India also slowed economic progress.
The China-Pakistan Economic Corridor (CPEC) is a $51 billion investment in Pakistani infrastructure and energy projects. It aims to expand roads, railways and pipelines to connect China's Xinjiang province to Pakistan's Gwadar Port. The projects are expected to boost Pakistan's economy by adding 2-2.5% annual growth and creating over 700,000 jobs by 2030. CPEC is seen as extending China's One Belt, One Road initiative and is a major part of China's development plan.
Pakistan faces several economic challenges that threaten its economic stability and growth. After gaining independence, Pakistan's economy was formed weakly by the British and was totally dependent on agriculture. It struggled with the failure of early five-year plans and periods of martial law. Today, Pakistan continues to grapple with issues like electricity shortages, unfavorable trade balances, dependence on loans and aid, a weak revenue system, foreign exchange rate problems, and other challenges such as governance issues, low education rates, civil unrest, and poverty.
This document provides an overview of privatization in Pakistan, including its history, key phases, successes and failures. Some key points:
- Privatization began in the 1950s but intensified in the 1980s-2000s under various governments seeking to improve economic growth. Major state assets were sold off to private owners.
- The largest phase was in the early 2000s under Shaukat Aziz, where 80% of banking and other major industries were privatized. This led to improved GDP growth.
- However, some privatizations like K-Electric failed due to mismanagement by new owners. There was also lack of transparency and allegations of corruption in the privatization process.
-
Pakistan faces several major economic issues, including low savings and high consumption rates, trade deficits due to low exports and high imports, declining share of world trade, shortages of energy and water, security issues like terrorism that hurt tourism, and law and order problems. These issues contribute to budget deficits, unemployment, inflation, lower investment and slower economic growth. Solutions proposed include increasing exports, reducing imports, improving infrastructure for energy and water, enhancing security, and promoting peace to revive tourism.
The document proposes using coal as a solution to Pakistan's energy crisis. It summarizes that Pakistan faces severe power shortages of over 14,000 MW despite having coal reserves of 185 million tons. However, Pakistan currently only produces 0.2% of its energy from coal. The proposal recommends that the government utilize coal reserves by establishing thermal power plants and gasification processes to generate electricity. Doing so could provide electricity to Pakistanis at affordable rates and alleviate the country's energy crisis for at least 25 years by utilizing its abundant coal resources.
The document discusses the industrial sector in Pakistan. It states that the industrial sector is important for economic development and countries with strong industries have higher economic growth. It then provides details on various industries in Pakistan like textiles, sports goods, telecom, cement, sugar, fertilizers, glass, and automobiles. It discusses their importance, production levels, exports and contributions to GDP and employment.
This document provides an overview of privatization in Pakistan, including:
- Privatization has occurred in waves since the 1960s, accelerating in the 1990s when over 165 transactions generated $9 billion in proceeds.
- The Privatization Commission was established in 2000 to manage Pakistan's privatization program and recommend privatization policies.
- Pakistan has successfully privatized state-owned enterprises across several sectors, including banking, energy, chemicals and fertilizers. This has generated tax revenue and improved products/services.
- However, challenges remain such as losses in some state-owned enterprises and the impact of recent financial crises and constitutional amendments. The document calls for strengthening strategic privatization deals and transparency.
Presentation on Petroleum Industry Bill to Nigeria Transition Committee May...Benjamin Ogbalor
The document provides an overview of Nigeria's petroleum industry bill (PIB) and gas sector, highlighting several key issues:
1) The PIB aims to deregulate and commercialize the petroleum sector but its provisions are inconsistent and powers of the minister and institutions are unclear.
2) Nigeria has large gas reserves but production and infrastructure are underdeveloped due to low investment, price caps, and an unclear legal/fiscal framework.
3) A new gas pricing mechanism is recommended to stimulate investment and growth in the gas sector instead of price caps, which have discouraged development of domestic gas supplies and infrastructure.
This document outlines the history and impact of privatization in Pakistan. It defines privatization as transferring enterprises from public to private sector. Pakistan began privatizing state-owned enterprises in the 1990s under Prime Minister Nawaz Sharif and continued efforts under Prime Ministers Shaukat Aziz and Pervez Musharraf. Privatization improved Pakistan's GDP growth rate and reduced inflation. However, some industries like Pakistan Steel Mills faced issues with full privatization. The document concludes that privatization generates significant revenue for the Pakistani government to use on other programs.
Pakistan's economy faces several challenges:
- It imports more than it exports, consuming more than it saves, while government spending exceeds revenues.
- Its share of world trade is shrinking while social indicators lag behind countries with similar incomes.
- It struggles with energy and water shortages due to inefficiencies and unequal distribution.
- Political instability, security issues, and poor law and order deter investment and economic progress.
To strengthen the economy, Pakistan must boost exports over imports, increase domestic savings and investment, improve social sectors like education and healthcare, address energy and water shortages, and ensure greater political stability and security to attract more investment.
The economy of Pakistan has the 27th largest GDP by purchasing power and 45th by nominal GDP. Pakistan has a semi-industrialized economy based around textiles, chemicals, food processing, agriculture and other industries. In its early decades after independence in 1947, Pakistan experienced average annual GDP growth of 6.8% in the 1960s, 4.8% in the 1970s, and 6.5% in the 1980s. More recent decades have seen lower growth rates and challenges including high fiscal deficits, inflation, declining exports, and issues with governance, infrastructure, and security. Major industries include textiles, mining, cement, telecom, sports goods, sugar, and fertilizer.
Causes and removal of industrial backwardness in pakistannight seem
The document discusses the major causes and remedies for industrial backwardness in Pakistan. It identifies 27 causes which are grouped into 4 categories: historical, economic, social, and political. The causes include the colonial policies of the British, lack of infrastructure, low investment, political instability, wars with India, and more. To remedy industrial backwardness, the document suggests improving education, providing tax incentives, developing infrastructure, ensuring political stability, and increasing investment in industries.
This document discusses privatization in Pakistan, including:
- Privatization involves transferring public assets, operations, or activities to private enterprise to generate growth and competition.
- Pakistan launched a privatization program in 1991 and another in 2004, privatizing over 80% of industries by 2007 to improve GDP growth and attract foreign investment.
- The document examines case studies of Pakistan's first privatized bank and PTCL telecom, finding mixed results from privatization. While the bank improved performance, PTCL saw profits decline after privatization.
- Recommendations include the government re-purchasing PTCL shares from its private owner to re-nationalize the company and help improve its performance.
Energy crisis in pakistan and effect on economySami Swati
Pakistan faces an energy crisis due to insufficient domestic energy production and high energy consumption. Electricity production of 8,500 MW falls far below demand of 13,500 MW. The energy crisis negatively impacts the economy through unemployment, reduced industrial and agricultural production, and higher electricity prices. The document recommends the government overhaul Pakistan's energy infrastructure, develop renewable resources, utilize domestic coal reserves, and initiate agreements for large-scale energy projects to improve the supply situation and reduce dependence on imported fuels.
Imports of pakistan & its impact on economyAyaz Masood
Pakistan imports far exceed its exports, contributing significantly to its trade deficit. Its top imports are refined petroleum, crude petroleum, palm oil, and scrap vessels from countries like the UAE, China, and Saudi Arabia. Machinery, automobiles, iron and steel, and crude oil also constitute major imports. Reducing imports and establishing domestic supply chains could help Pakistan utilize more of its natural resources to boost local industry and economic opportunities.
This Pakistan Studies presentation is created by the students of C@SE Islamabad and it gives an overview of the economic issues of the Islamic Republic of Pakistan
The document summarizes key information about Pakistan's economy. It states that Pakistan has the 26th largest economy by PPP and 44th largest by nominal GDP. The economy has grown at an average of 4.14% annually and per capita income is $3,144, ranking 140th globally. However, Pakistan faces challenges such as a low savings rate, high imports, energy shortages, and security issues that impact the business environment.
Presentation on China Pakistan Economic Corridor. Cpec is initiative of Pakistan and China to reduce the travel costs and improve the economy of both countries.
Ayub Khan came to power in 1958 after a military coup. He aimed to rapidly industrialize Pakistan's economy and encourage private sector growth. Agricultural reforms like high-yielding seeds boosted farm output. Industrial policy focused on import substitution. Economic growth averaged 6.25% annually during Ayub's rule. However, foreign aid dependence rose and industrial protection policies made some industries inefficient. The 1965 war with India also slowed economic progress.
The China-Pakistan Economic Corridor (CPEC) is a $51 billion investment in Pakistani infrastructure and energy projects. It aims to expand roads, railways and pipelines to connect China's Xinjiang province to Pakistan's Gwadar Port. The projects are expected to boost Pakistan's economy by adding 2-2.5% annual growth and creating over 700,000 jobs by 2030. CPEC is seen as extending China's One Belt, One Road initiative and is a major part of China's development plan.
Pakistan faces several economic challenges that threaten its economic stability and growth. After gaining independence, Pakistan's economy was formed weakly by the British and was totally dependent on agriculture. It struggled with the failure of early five-year plans and periods of martial law. Today, Pakistan continues to grapple with issues like electricity shortages, unfavorable trade balances, dependence on loans and aid, a weak revenue system, foreign exchange rate problems, and other challenges such as governance issues, low education rates, civil unrest, and poverty.
This document provides an overview of privatization in Pakistan, including its history, key phases, successes and failures. Some key points:
- Privatization began in the 1950s but intensified in the 1980s-2000s under various governments seeking to improve economic growth. Major state assets were sold off to private owners.
- The largest phase was in the early 2000s under Shaukat Aziz, where 80% of banking and other major industries were privatized. This led to improved GDP growth.
- However, some privatizations like K-Electric failed due to mismanagement by new owners. There was also lack of transparency and allegations of corruption in the privatization process.
-
Pakistan faces several major economic issues, including low savings and high consumption rates, trade deficits due to low exports and high imports, declining share of world trade, shortages of energy and water, security issues like terrorism that hurt tourism, and law and order problems. These issues contribute to budget deficits, unemployment, inflation, lower investment and slower economic growth. Solutions proposed include increasing exports, reducing imports, improving infrastructure for energy and water, enhancing security, and promoting peace to revive tourism.
The document proposes using coal as a solution to Pakistan's energy crisis. It summarizes that Pakistan faces severe power shortages of over 14,000 MW despite having coal reserves of 185 million tons. However, Pakistan currently only produces 0.2% of its energy from coal. The proposal recommends that the government utilize coal reserves by establishing thermal power plants and gasification processes to generate electricity. Doing so could provide electricity to Pakistanis at affordable rates and alleviate the country's energy crisis for at least 25 years by utilizing its abundant coal resources.
The document discusses the industrial sector in Pakistan. It states that the industrial sector is important for economic development and countries with strong industries have higher economic growth. It then provides details on various industries in Pakistan like textiles, sports goods, telecom, cement, sugar, fertilizers, glass, and automobiles. It discusses their importance, production levels, exports and contributions to GDP and employment.
This document provides an overview of privatization in Pakistan, including:
- Privatization has occurred in waves since the 1960s, accelerating in the 1990s when over 165 transactions generated $9 billion in proceeds.
- The Privatization Commission was established in 2000 to manage Pakistan's privatization program and recommend privatization policies.
- Pakistan has successfully privatized state-owned enterprises across several sectors, including banking, energy, chemicals and fertilizers. This has generated tax revenue and improved products/services.
- However, challenges remain such as losses in some state-owned enterprises and the impact of recent financial crises and constitutional amendments. The document calls for strengthening strategic privatization deals and transparency.
Presentation on Petroleum Industry Bill to Nigeria Transition Committee May...Benjamin Ogbalor
The document provides an overview of Nigeria's petroleum industry bill (PIB) and gas sector, highlighting several key issues:
1) The PIB aims to deregulate and commercialize the petroleum sector but its provisions are inconsistent and powers of the minister and institutions are unclear.
2) Nigeria has large gas reserves but production and infrastructure are underdeveloped due to low investment, price caps, and an unclear legal/fiscal framework.
3) A new gas pricing mechanism is recommended to stimulate investment and growth in the gas sector instead of price caps, which have discouraged development of domestic gas supplies and infrastructure.
This document summarizes Microbix's annual general meeting for 2012. Key points include exiting 2012 as cash flow positive by closing a Kinlytic agreement, funding LumiSort development, relocating the VIRUSMAX joint venture, and growing virology profits. It also provides financial projections showing Kinlytic generating $100 million in revenue by year 3 and $400 million by year 5, and an overall gross sales target of $240 million across business segments by 2016.
The document provides an overview of alternative energy in the United States, noting that tax incentives have been the main driver of growth in addition to concerns over energy security and the environment. It estimates that 123GW of additional capacity will be needed by 2030 to meet existing renewable portfolio standards. The major alternative energy technologies in the US include wind, solar, biomass, and geothermal, each with their own variations and highlights.
This document provides an introductory guide to public private partnerships (PPPs) in Hong Kong. It defines PPPs as contractual arrangements between the public and private sectors to deliver public services. The key benefits of PPPs include enhancing investment in public services, improving value for money, removing inefficiencies, and managing risks associated with long-term projects. Common PPP models used in Hong Kong include design-build-finance-operate (DBFO) and design-build-operate (DBO) arrangements. Under these models, the private sector is involved in designing, building, financing, operating and maintaining facilities, with payments made when specified outputs and performance standards are met.
This document provides an introductory guide to public private partnerships (PPPs) in Hong Kong. It defines PPPs as contractual arrangements between the public and private sectors to deliver public services. The key benefits of PPPs include enhancing public services, realizing value for money, removing inefficiencies, and managing risks associated with long-term projects. Common PPP models for Hong Kong include design-build-finance-operate (DBFO) and design-build-operate (DBO) arrangements. Under these models, the private sector is involved in designing, building, financing, operating and maintaining facilities according to output-based specifications, with payments made when services are delivered.
This document provides an introductory guide to public private partnerships (PPPs) in Hong Kong. It defines PPPs as long-term contractual arrangements between the public and private sectors to deliver public services. The guide discusses the benefits of PPPs, including enhancing and improving public services, realizing value for money, removing inefficiencies, and managing risks. It also outlines common PPP models and structures that are suitable for Hong Kong, such as design-build-finance-operate agreements. The key benefits of PPPs are bringing private sector efficiencies to public services and delivering better quality infrastructure and services at a lower overall cost than traditional procurement methods.
This document discusses privatization and deregulation in Pakistan. It defines privatization as transferring ownership from public to private sector. Deregulation removes government rules in markets. Pakistan has pursued three phases of privatization since the 1960s to improve efficiency and reduce losses. Over $9 billion has been generated from 167 transactions privatizing industries like fertilizer, cement, and banks. The document also discusses potential privatization of KESC, OGDCL, and PPL. It outlines advantages like increased competition and disadvantages like risk of private monopolies forming from deregulation.
The document discusses the concepts of liberalization, privatization, and globalization (LPG) that were implemented in India in 1991. It provides 3 key reasons for implementing LPG: growing inefficiency, overprotection of industries, and economic mismanagement. LPG involved liberalizing trade, privatizing public sector enterprises, and globalizing the Indian economy. The document outlines some advantages and disadvantages of each component of LPG.
Annual Conference on Coal : Priorities, Challenges and AuctionsInfraline Energy
Continuing with our focus on contemporary issues concerning Energy, Infraline Energy is organizing a conference on “Coal Priorities, Challenges & Auctions” on May 27 in New Delhi. For further details on the conference, kindly drop us a mail on conference@infraline.com
The document discusses public sector organizations in India. It defines public sector units as those owned and controlled by the government, with objectives of providing public services. It then traces the growth of public sector enterprises in India from the 1948 industrial policy resolution that reserved certain industries for the public sector. The performance of public sector enterprises increased substantially over successive five-year plans. Reasons for the growth include securing balanced regional development and establishing large, heavy industries. The document also discusses privatization trends in India and abroad.
This is the presentation that I made at Cityscape Jeddah in June this year. Some comments are available on several Middle East web sites such as Arab News link attached http://arabnews.com/economy/article453469.ece )
PUBLIC PRIVATE PARTNERSHIPS ARE MOSTLY PURSUIED TO SATISFY THE INFRASTRUCTURAL NEEDS OF A COUNTRY, REGION OR A CITY . PPP Is an instrument for infrastructure development AND HAS BASIC TENETS AND PRINCIPLES UNDERLYING ITS SUCCESSFUL IMPLEMENTATION.
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The document summarizes key provisions of Nigeria's Petroleum Industry Act of 2021. It establishes two new regulatory authorities - the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. It also establishes the Nigerian National Petroleum Company Limited to replace the Nigerian National Petroleum Corporation, as well as funds like the Frontier Exploration Fund and Midstream and Downstream Gas Infrastructure Fund. The Act aims to reform governance, improve transparency, and establish a commercially oriented national petroleum company in Nigeria's oil and gas industry.
A business valuation, also known as a company valuation, is the process of determining the economic value of a business. During the valuation process, all areas of a business are analyzed to determine its worth and the worth of its departments or units.
The document discusses India's development strategy prior to 1991 which focused on mixed economy and state control of key industries like coal, steel, and power. While this led to growth in certain areas, it also had negative aspects like slow industrial growth and rising government expenditure. This necessitated reforms through liberalization, privatization, and globalization which aimed to relax rules for private sectors, reduce public sectors, and integrate India's economy globally. The strategies involved opening industries to private players, selling public enterprises, and removing trade barriers. The document outlines the processes, advantages, and disadvantages of each reform component.
Development of India's Carbon Credit Market.pptxmsounak95
Provides an overview of the development of Carbon Markets since Kyoto Protocol with a special focus on the compliance markets. It also explores the various global ETS instruments currently operational and its impact on the economy and corporates. It also examines the regulatory development of India's Carbon Credit Trading Scheme and provides critical analysis of various provisions.
To Madam Ayesha...Financial Analysis of PSOSam Royale
This is the financial analysis with all financial ratios calculated. I feel very sorry to say that my project was considered copy paste.Although it was a damn 1 day work out.
The document discusses the LPG model of economic reforms introduced in India in 1991. It introduced liberalization, privatization, and globalization. Liberalization relaxed restrictions on trade and industry. Privatization transferred ownership of public sector enterprises to private companies. Globalization opened the Indian economy to increased foreign investment and trade. The reforms aimed to make the Indian economy more efficient and competitive and improve its balance of payments situation.
2. Sequence of Presentation
Privatisation : Concept & Need
Modes of Privatisation
Privatisation Process
Functions of Privatisation Commission
Privatisation in Pakistan
Prospects & Challenges
Way Forward
2
3. Privatisation Defined
“…. a transaction by virtue of which any property,
right, interest, concession or management thereof
is transferred to any person (entity) from the
Federal Government or any enterprise owned or
controlled, wholly or partially, directly or indirectly,
by the Federal Government”.
(PC Ordinance 2000)
3
4. Need for Privatisation
a) Enhancing the role of private sector in the economy
b) Reducing the budgetary deficit by selling the loss making
State Owned Enterprises (SOEs) to the private sector
c) Improving efficiency of SOEs by selling their at least 26 %
shares with management control to the private sector
d) Producing better quality products & services at affordable
prices for the public through Public Private Partnership
4
5. Privatisation Commission
Established as a body corporate by the promulgation of
Privatisation Commission Ordinance 2000
The Commission is governed and administered by a nine
(09) member Board with Minister for Privatisation as
Chairman
The Board is independent, autonomous and is dominated
by the members from Private Sector
5
6. Functions of Privatisation
Commission
Recommending privatisation policy guidelines to
the Cabinet;
Preparing comprehensive privatisation programme;
Planning, managing, implementing and controlling
the privatisation programme approved by the
Cabinet;
Taking operational decisions on matters pertaining
to privatisation, restructuring, deregulation and
regulatory issues. 6
7. Functions of Privatisation
Commission (contd)
Proposing regulatory framework, including the
establishment and strengthening of regulatory
authorities;
Advising the Federal Government in selection and
appointment of the head and members of a
regulatory authority;
Advising measures to the Federal Government for
improvement of public sector units till their
privatisation;
7
8. Functions of Privatisation
Commission (contd)
Assisting in the implementation of Federal
Government policies on deregulation and
privatization and advise the Federal Government on
deregulation of the economy;
Performing any other function that is incidental or
ancillary to carry out the privatisation programme
approved by the Cabinet.
8
9. Modes of Privatisation
Outright Sale of assets and business through open auction
Sale of shares through public auction or tender
Public offering of shares through a stock exchange
Management or employee buyouts
Award of long term leases
Management or concession contracts
Global Depositary Receipts (GDRs): Euro Bonds etc
Exchangeable / Convertible bonds: Taking loans from
international funds against collateral of shares
9
10. Privatisation Process
Approval of Council of Common Interest (CCI).
Cabinet Committee on Privatisation (CCoP) decision
to privatise an entity
Hiring of a Financial Advisor (FA) or Valuer
Due diligence by FA and Privatisation Commission
Finalization of transaction structure
Restructuring and regulatory reforms, if needed
Invitation of Expressions of Interest (EOI)
Submission of statement of qualifications
Prequalification of firms
Due diligence by potential buyers
10
11. Privatisation Process (contd)
Sharing of Bid Documents/Instructions with pre-
qualified bidders
Pre-bid conference
Approval of valuation (reference price) by CCOP
Bidding process (media invited to observe bidding)
Approval of bidding results by PC Board and CCOP
Issuance of Letter of Intent to successful bidder
Finalization of sale agreement between PC and Buyer
Handing over of the entity
11
13. Privatisation Phases
1960s First Generation Privatisation
Objective Create / Strengthen Private Sector
Strategy Build factories and Sell them
1990s Second Generation Privatisation
Objective Reduce Government Losses
Strategy Disinvest, Deregulate
2000s Third Generation Privatisation
Objective Improve Efficiency & Profitability
Strategy Seek Strategic Investors
13
14. Achievements
Most successful privatisation program in South Asia,
Central Asia and the Middle East
Over $ 9 billion proceeds (Rs. 476,421 million)
167 transactions completed so far
100% state owned enterprises in the chemical,
textile, nitrogen fertilizer, cement, rice, roti and light
engineering while 98% automobile industry, 96%
ghee mills and 100% units of Phosphate fertilizer
have been privatised
Banking industry privatised substantially due to
which 80% of the banking sector is under private
ownership.
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15. Sector Wise Transactions
Since its inception in 1991, the Privatisation Commission have conducted
167 transactions with over Rs. 476 billion. Details are as follows:
Sector No of transactions Proceeds (Rs M)
Banking 7 41,023
Capital market 22 133,124
Energy 14 51,756
Telecom 4 187,360
Automobile 7 1,102
Cement 17 16,178
Chemical and Fertilizer 23 41,922
Engineering 7 183
Ghee Mills 24 843
Rice and Roti Plants 23 324
Textile 4 371
Newspapers 5 271
Tourism 4 1,805
Others 6 159 15
Total 167 476,421
16. Benefits of Privatisation
Increased private sector share in GDP
Induced investment and transfer of technology
Improved management via introduction of international
best practices and quality improvement
increased productivity and competitiveness
Employment generation leading to poverty alleviation
Creation of fiscal space for allocation of funds to social
sectors and infrastructure development
Better services, products, higher profits leading to
increased dividends and tax revenues
16
17. Prospects
Broad national consensus on need and benefits of
privatisation/ deregulation in the country
Robust private sector to take on even loss making state
owned enterprises( SOEs)
Comprehensive legal framework available
Experience of 2 decades of successful privatisation
Support of international organizations
Strong judiciary, civil society and media to ensure
transparency 17
18. Challenges
Domestic and International financial crisis
Huge losses of State Owned Enterprises
Share values of many likely transactions at all time low
Managing public interest in industries with social
repercussions i.e. power, transportation etc
18th Constitutional Amendment has increased the role of
provinces in privatisation decision making process
Regulatory/ dispute resolution framework needs changes
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20. Privatisation Strategy
1. Loss reduction and efficiency improvement will remain as
basic objectives of privatisation in Pakistan
2. Corporatization and Restructuring of State Owned
Enterprises before their privatisation.
3. Transparency as a cornerstone of entire process.
4. Safeguarding the interest of employees and consumers.
5. Strengthening of regulatory framework.
6. Strategic sale and Private Public Partnership with
management control continues to be the main strategy
7. Sectors chosen for privatisation on priority are
infrastructure, energy and financial institutions
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21. Upcoming Transactions
Sr. No. Transaction
1 Oil & Gas Development Company Limited
2 Pakistan Petroleum Limited
3 Heavy Electrical Complex
4 National Power Construction Company
5 Peshawar Electric Supply Company (PESCO)
6 Quetta Electric Supply Company (QESCO)
7 Hyderabad Electric Supply Company (HESCO)
8 National Power Construction Corporation (NPCC)
9 Faisalabad Electric supply Company (FESCO)
10 Jamshoro Power Company Limited (JPCL)
11 Pakistan Mineral Development Corporation (PMDC)
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Privatization is an instrument of economic policy. It is the transfer of property or control of assets used to deliver goods or services from the public to the private sector. The narrow definition refers to privatization at the level of the firm or units within it. While there are different forms of privatization, a widely accepted definition of privatization encompasses the privatization of management as well as the privatization of ownership. Broadly defined, privatization is the abolition of barriers to private sector provision of services or the infrastructure necessary for their delivery. The broad definition refers to privatization at sector level (e.g., telecommunication, electricity, social security, etc.). It is more complex than enterprise level privatization as it often involves restructuring of a whole sector and not just one firm. It involves giving the private sector the right to use or access the public domain (radio spectrum, land, right of way, etc.) to build and operate a network industry. It also involves defining the “public service” dimension and licensing the private sector to deliver such services. The broad definition of privatization requires putting in place legal and regulatory mechanisms to ensure that private providers do not overlook the public dimension of the services they are licensed to deliver and do not fail to meet pre-announced policy objectives (coverage, access, etc.). Privatization, however, can also be used to refer to those measures taken by a government to increase the role of the private sector in an economy. It is in this sense that privatization was, and is, used in the case of the former socialist economies in Central and Eastern Europe and the former Soviet Union. But it can also be used in the case of some Arab economies that are undergoing transitions, albeit of a different kind. Some countries, such as Egypt and Tunisia in the 1980s and Algeria today, are striving to move from a state-controlled and dominated economy to a market-based economy where the private sector plays a much greater role. Other countries, such as the oil rich countries in the Gulf, have begun to realize the importance of privatization in diversifying their economic base away from a heavy reliance on the energy sector.
Poor Performance: PEs do not perform at the optimum level due to the problems mentioned above. In Pakistan the Government has been paying huge amounts in subsidies to keep these entities running. E.g. Pakistan Steel Mills had liabilities of Rs. 17 billion. Huge over-employment with 23,000 employees which were cut to 13,000. 70% duty on steel imports to provide support to PSM. Various reform initiatives failed to bring these PEs out of woods. PIDC was broken up into 11 corporations, which regrouped as 8; some of them clicked, others didn’t. Engineering sector generally made huge losses despite different reform packages. HMC with 55,000 employees is incurring Rs. 3.5 billion losses. PIA, PNSC, Rice Corp, Ghee Corp, State Cement Corp, are other examples. Pakistan has huge infrastructure deficits which do not allow the economy to perform to its potential. We shall need a lot of money to finance these Rising infrastructure needs of the economy. For this we need to save some money from these subsidies and earn money from taxes to be paid by a rejuvenated private sector. In addition direct private sector investment in infrastructure will take us out of the present situation. Government’s plan to create a national trade corridor will be implemented with the help of the private sector. Pakistan has limited financial resources. Financial requirements of loss making PEs create further financial constraints for the Government. Due to this Govt. money is not available for development. Overstaffing, old technology, inefficiency etc. are the bane of the public sector. In comparison the private sector always prefers to work with cutting edge technology and smart and lean management. Privatization has led to the growth (in terms of market capitalization) and deepening (in terms of numbers of shareholders) of financial markets, as well as increasing their liquidity. Share issue privatization was the main driver behind the development of capital markets worldwide. It is noteworthy that privatized firms are the most valuable companies in 7 of the 10 largest non-US stock markets, and in almost all emerging markets possessing stock exchanges. Furthermore, 35 of the 42 largest common stock issues in history are either privatizations or capital increases by recently privatized firms. Finally, privatizations have not only increased the liquidity of stock markets, but they have exponentially increased the number of shareholders around the world. Privatisation has broadened and deepened the base of Pakistan’s capital market and increased its capitalization from Rs. 951.446 billion in 2003 to Rs. 4.329 trillion in 2007. More units have been listed on the stock exchanges due to this initiative. Moreover, new investors have joined the business and volume of the stock exchanges have risen over the years. The current levels of the KSE would have been impossible without this initiative. During 2003 the KSE 100 Index touched the highest level of 4604.02 while in 2007 the highest point was 14,814.85. International investors look towards overall policy environment. The investor prefers a free market economy with all its essential ingredients like liberalization, deregulation and privatisation.
Poor Performance: PEs do not perform at the optimum level due to the problems mentioned above. In Pakistan the Government has been paying huge amounts in subsidies to keep these entities running. E.g. Pakistan Steel Mills had liabilities of Rs. 17 billion. Huge over-employment with 23,000 employees which were cut to 13,000. 70% duty on steel imports to provide support to PSM. Various reform initiatives failed to bring these PEs out of woods. PIDC was broken up into 11 corporations, which regrouped as 8; some of them clicked, others didn’t. Engineering sector generally made huge losses despite different reform packages. HMC with 55,000 employees is incurring Rs. 3.5 billion losses. PIA, PNSC, Rice Corp, Ghee Corp, State Cement Corp, are other examples. Pakistan has huge infrastructure deficits which do not allow the economy to perform to its potential. We shall need a lot of money to finance these Rising infrastructure needs of the economy. For this we need to save some money from these subsidies and earn money from taxes to be paid by a rejuvenated private sector. In addition direct private sector investment in infrastructure will take us out of the present situation. Government’s plan to create a national trade corridor will be implemented with the help of the private sector. Pakistan has limited financial resources. Financial requirements of loss making PEs create further financial constraints for the Government. Due to this Govt. money is not available for development. Overstaffing, old technology, inefficiency etc. are the bane of the public sector. In comparison the private sector always prefers to work with cutting edge technology and smart and lean management. Privatization has led to the growth (in terms of market capitalization) and deepening (in terms of numbers of shareholders) of financial markets, as well as increasing their liquidity. Share issue privatization was the main driver behind the development of capital markets worldwide. It is noteworthy that privatized firms are the most valuable companies in 7 of the 10 largest non-US stock markets, and in almost all emerging markets possessing stock exchanges. Furthermore, 35 of the 42 largest common stock issues in history are either privatizations or capital increases by recently privatized firms. Finally, privatizations have not only increased the liquidity of stock markets, but they have exponentially increased the number of shareholders around the world. Privatisation has broadened and deepened the base of Pakistan’s capital market and increased its capitalization from Rs. 951.446 billion in 2003 to Rs. 4.329 trillion in 2007. More units have been listed on the stock exchanges due to this initiative. Moreover, new investors have joined the business and volume of the stock exchanges have risen over the years. The current levels of the KSE would have been impossible without this initiative. During 2003 the KSE 100 Index touched the highest level of 4604.02 while in 2007 the highest point was 14,814.85. International investors look towards overall policy environment. The investor prefers a free market economy with all its essential ingredients like liberalization, deregulation and privatisation.
Once the FA or valuation firm (for industrial transactions) completes the valuation, it is considered to be the reference price and is presented to the Board and CCOP for approval. Board holds its meeting in PC which acts as its Secretariat. Prior to the bidding, a pre-bidding conference is held to address investor concerns and questions. While project team or FA propose the bidding process, it must be approved by the Board and media has to be invited to it according to law.
The buyer has to deposit the whole amount before taking over the entity. 25% (including earnest money) is to be paid within 15 days. Remaining 75% is to be paid within 45-90 days. On full payment LOA is issued after obtaining approval of the Board of PC and CCOP. If the successful bidder does not make payment within stipulated time then the earnest money deposited by him is forfieted. This earnest money is deposited by all pre-qualified bidders before actual bidding process starts. Bidding Process Round One: a) On the Bidding Date, when the Commission is satisfied that the Bidding Process can commence, the Commission shall request each of the Qualified Bidders to place the sealed envelopes containing their Bid Letter into the bid box. b) The Commission will open each of the sealed envelopes and announce the value of the bid received from each Qualified Bidder and will enter the same on the record sheet to be established by the Commission for this purpose. The omission of a Qualified Bidder ’ s signature on the record sheet shall not invalidate the contents and effect of the record. Any Bid Letter that does not conform to the format prescribed at Annexure ‘ D ’ shall be declared as non-compliant and shall be rejected. c) The Bidders with the highest three bids ( “ Three Highest Bidders ” ) in Round One shall stand eligible for participation in Round Two. Round Two: (Open Auction or Out Cry) a) The Commission shall immediately thereafter, invite the Three Highest Bidders who participated in Round One to participate in Round Two and bid through an open auction. The Three Highest Qualified Bidders invited for Round Two must not submit bids that are lower than the highest bid which has been submitted in Round One. The open auction shall commence from the highest bid submitted in Round One with a minimum raise of Rupees Five (Rs. 5.00) per share or multiples thereof. Where the sale does not involve shares an appropriate amount is determined for the raise. b) In the event, the highest Bid received by the Commission on conclusion of Round Two is lower than the minimum price acceptable to the Commission, the Three Highest Bidders shall be requested by the Commission to equal or exceed the ‘ minimum price acceptable to the Commission ’ in a manner starting first with the Highest Bidder in Round Two and thereafter, in descending order of the respective Bids. If one of the Three Highest Bidders equals or exceeds the ‘ minimum price acceptable to the Commission ’ then the bidding process will stand concluded and no further rounds will be held. All bids are required to be valid for a period of ninety (90) Business Days from receipt. Bidding takes place normally with three or more bidders but at least two are required to move ahead.
A robust private sector will rejuvenate the economy. The consumers will benefit from price competitiveness. Privatisation proceeds are utilised for debt retirement (90%) and poverty alleviation (10%). Elimination of subsidies and budgetary support for loss-making industries and receipt of increased taxes and dividends from privatised units means more fiscal space for improvement of the infrastructure and social sector expenditures for human development.
A robust private sector will rejuvenate the economy. The consumers will benefit from price competitiveness. Privatisation proceeds are utilised for debt retirement (90%) and poverty alleviation (10%). Elimination of subsidies and budgetary support for loss-making industries and receipt of increased taxes and dividends from privatised units means more fiscal space for improvement of the infrastructure and social sector expenditures for human development.