The momentum and demands for denationalization gained currency towards the end of the government of Prime minister Zulfikar Ali Bhutto and Pakistan Peoples Party who under intensified their nationalization programme had effectively the government-ownership management in the private industries of Pakistan; it had built a strong public-sector with priority on cement, steel and fertilizers. A large-scale privatization programme was launched on 22 January as the primary economic policy by Prime Minister Navaz Sharif who came to national power after securing a flight-winning victory in the general elections. The first phase of the privatization program covered the half of the public sector industries in terms of total employment,  and the programme was in a direct response to Pakistan Peoples Party and Zulfikar Ali Bhutto, and for instance Sharif's privatization programme was swift as nationalization programme. Each and everyone want to become the best and perfect among all the other.
Now that another military ruler, General Musharraf, is holding the fort, the process has gained momentum. Many financial writers want us to believe that the process of privatisation was initiated in and not in The Privatisation Commission website also misinforms the public that privatisation began from Jan 22, in the country.
Subsequently, a Transfer of Managed Establishments Order was enacted as a law to provide legal cover for this imperial gesture of kindness. Inthe Committee on Disinvestment, Deregulation and Privatisation was constituted with the then president of the Federation of Pakistan Chambers of Commerce and Industry, Aziz Zulfikar as its head.
It had a few sub-committees that did some preliminary work. Inthe Benazir government also formed a privatisation committee and made a French consultant prepare a report on the subject. A small number of PIA shares were offered to the public for the first time as a modest beginning towards privatisation.
After becoming prime minister inNawaz Sharif himself initiated the privatisation process as per policy of his government. The whole process was done in indecent haste. Advertisements for inviting bids for 26 per cent of the shares of the MCB appeared in newspapers in the third week of December, Bidders were not allowed any due diligence.
Only 11 days were given to the bidders as the last date of submission was December Five bids were received and were opened in the conference room of the State Bank of Pakistan by a bidding committee that was headed by the then Governor of State Bank of Pakistan, I.
Abdul Qadir Tawakul was the highest bidder who offered Rsa-share. The total payment came to Rs Tawakul was refused and his offer was turned down on the ground that the colour of the money he was offering was a bit black. Tawakul made a lot of noise and threatened to take the case to the highest level of the judiciary.
But, bankers say, he was promised and later given two billion rupees bank loan to withdraw from the race. Tawakul obtained the loan entirely on bogus documents and is now in jail because of it. After a series of hectic consultations and meetings, a national group of 10 businessmen was given the management and ownership of the MCB on April 8, The bad loans of the MCB were hardly 10 to 11 per cent of its advances as against 33 to 35 per cent in the four other nationalised banks.
It had a small and manageable branch network. Hussain Lowai, a banker who led the national group while taking over the MCB, is not in Pakistan for the last several years after having been declared an absconder in a gold import case.
Mansha is now the majority shareholder of the MCB and many of the original 10 members of National Group are no more the co-owners of the bank.
Who knows what will happen tomorrow? Mansha emerged as one of the biggest players in the privatisation game. Along with his in-laws, Mansha enjoys a monopolistic position in cement production in the Northern Areas. He aspired to get the United Bank but was elbowed out in the second bidding as was the case with the MCB where he got the bank and Tawakul was sidelined.
He also took over Adamjee Insurance and has now become a big force in the financial sector. Gul Mohammad Adamjee, the only surviving brother of the late Wahid and Dawood Adamjee, participated in the MCB bidding but could not get any attention from the bidding committee or the Privatisation Commission.
He was not even given the right of first refusal. It is said that the salaries of Pakistan government employees in the initial months after were paid by the Adamjees. They suffered a lot because of the separation of East Pakistan in Subsequently, the Adamjees also lost their insurance company.
Privatisation in Pakistan has remained a controversial matter, if not a dirty game. Three of its chairmen, retired Lt-General Saeed QadirNaveed Qamarand Khawaja Asif were put in jail for one reason or another after the dismissal of their respective governments.
The Allied Bank was the second bank that was privatised in and given to an employee management group for a negotiated price. Some 7, employees were given shareholding but were denied any role in its management. The ABL story is tragic.
It is full of treachery, deceit and greed. It was handed over to the employees management on August 8, A split occurred in the group within weeks after the takeover and rival groups got involved in a litigation process.
Khalid Latif was removed and arrested after the dismissal of the IJI government in Jun 02, · Pakistan has privatized nearly industrial units since the privatization process was launched in , but bids to privatize major corporations like Pakistan Telecom and two major banks have failed because of related scandals.
Across the globe, Nestlé is pushing to privatize and control public water resources. Nestlé's former CEO and Chairman of the Board, Peter Brabeck, has explained his philosophy with "The one opinion, which I think is extreme, is represented by the NGOs, who bang on about declaring water a public right.
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The privatization of Pakistan Steel Mills, the power distribution companies including FESCO, IESCO, LESCO and other entities are on the hit list that would be privatized by the next year