ISLAMABAD – The Pakistan Economy Watch (PEW) on Monday lauded to move of the Prime Minister Imran Khan to restructure state-run companies which are inflicting losses to the tune of trillions.
In case of success, the government will save hundreds of billions of rupees being spent to keep these institutions artificially alive, it said.
Pakistan cannot progress unless it strikes a balance between income and expenditures for which tackling failed companies is necessary, said Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan.
He said that loss-making entities are getting more funds than being spent on defence of the country while all the money is going down the drain which cannot be justified.
Almost all the governments over the last forty years have tried to turnaround SOEs or sell them but the experience of privatization has left much to be desired.
Therefore, now the Prime Minister has decided to introduce a mixed ownership model by dividing these companies into smaller companies and appoint their management on merit.
He informed that there are about 200 SOEs in Pakistan having an impressive assets base but their only contribution is the employment of half a million people at a staggering loss to the national exchange.
Their mismanagement and operational inefficiencies have touched unimaginable heights. They have been causing heavy losses to the national exchequer in the shape of subsidies, bailout package and financial assistance.