Re: Nawaz Sharif means business to curb energy shortages..
what do you think who is going to buy 5 Billion $ worth of paper certainly business groups like Nishat, Sitara, Fatima, Chenab, Habib, Dewan, Lakson ... am i missing some one?
aaah .. i wish i had enough money this is really a great opportunity to reap sizable profits and ownership of crown jewels for pennies..
Re: Nawaz Sharif means business to curb energy shortages..
^ so do you think privatisation of ESCOs is being carried out? 5 billion dollars is a big amount, no businessman would lend the amount for nothing.
Re: Nawaz Sharif means business to curb energy shortages..
Not right away but i am betting NS team going to fire quiet a lot of people in coming months, they will probably shed over 25% of workforce and for the new management there will be performance targets for the medium term. Subsidies will be likely brought down by 30% to 50% in three years.
After three years of tight management and unloading of bad assets and hair cut ...well ESCO's will become prime assets of federal government to privatize.
As far 3-month, 6-month & 12-month treasury bills concerns, i think we can find buyer for 5 Billion $ within Pakistan, t-bills rate will be peg to current SBP base rate of 9.5% maybe for sweeten the deal they will add 1% premium over it business groups & banks with record money sitting in their accounts will flock over it.
Its going to be win-win situation for both people of Pakistan & business groups of Pakistan. Not a bad plan in such desperate situation.
Re: Nawaz Sharif means business to curb energy shortages..
Yep, Mansha 'owes' Nawaz Sharif quite a bit....plus, hes made tons of money from the IPP contracts. So hes probably just looking at it as a medium to long term investment. Smells fishy every time NS approaches his 'internal business circle'.
Re: Nawaz Sharif means business to curb energy shortages..
^ Like it or not business community overwhelming voted for PMLN and they are waiting for NS government to form. Its pretty much realize now they will open their checkbooks well definitely they want something in return but at least they will not demand harsh belt-tightening like IMF going to ask.
I am all happy with the NS plan it will definitely solve the electricity crises for once and all.
Re: Nawaz Sharif means business to curb energy shortages..
What PMLN core plan for next years is as such according to my information:
1) Electricity crises - solve in the short term to medium term by issuing t-bills & soft loans from Business groups & Saudi Arabia. In the long term their are literally dozens of solar, hydro and other alternative energy projects are in the pipeline.
2) Economy - Electricity is the keyword over 40% of industrial capacity is idle because of load-shading by just providing 24/7 electricity will boost national growth rate by 3.5% in less then a year.
3) by privatizing PIA, Railway, Steel Mills, ESCO's and other state-owned assets will raise over 15 Billion $ and with record money being sent by oversees Pakistani's - the inflation rate will definitely come down and growth rate touch to over 5%
4) Shahbaz Shareef - He is a major factor for PMLN popularity in Punjab, lets see what else he have in his sleeves for next 5 years.
If everything went according to the plan the PMLN will be a serious candidate for 2nd term.
Re: Nawaz Sharif means business to curb energy shortages..
....
3) by privatizing PIA, Railway, Steel Mills, ESCO's and other state-owned assets will raise over 15 Billion $ .......
where would the generals and jiyalas go?
Re: Nawaz Sharif means business to curb energy shortages..
^ Like it or not business community overwhelming voted for PMLN and they are waiting for NS government to form. Its pretty much realize now they will open their checkbooks well definitely they want something in return but at least they will not demand harsh belt-tightening like IMF going to ask.
I am all happy with the NS plan it will definitely solve the electricity crises for once and all.
How does the electricity crisis get solved once and for all by simply finding money to pay off the current circular debt? Circular debt comes back the moment you pay it off. Only long term solution to fixing the problem is to stop the bleeding. Stop power theft, and most importantly, make the big fish pay their bills. Many industries owned by politicians renege on their obligations. Most government departments owe billions to power companies.
A loan, whether from IMF or local businesses, will be a stop gap measure at best. It will not be a long term solution. NS cannot, and will not go after the big fish, since he is a part of that circle. The difficult decisions he was talking about were lay offs, and continued load shedding for the next few weeks/months before short term relief kicks in.
Without tackling corruption, we will remain in the same boat...and NS has already announced his govt wont be opening any new accountability cases.....only continuing the ones that are open. So we effectively have another NRO already done. And he certainly wont be going after any of his own. Lets see who heads the PAC.
Re: Nawaz Sharif means business to curb energy shortages..
^ thanks for enlightening us that loan is a short-term plan, otherwise we were in complete dark. and what tells you that there are no medium/long term plans?
Re: Nawaz Sharif means business to curb energy shortages..
^ thanks for enlightening us that loan is a short-term plan, otherwise we were in complete dark. and what tells you that there are no medium/long term plans?
Long term plans like more power plants etc will be meaningless if power theft and bill defaults are not tackled. And as I said before, some of the biggest defaulters are govt departments and industries owned by big fish that are friends with the Sharifs. Ittefaq foundries is one of the top Lesco defaulters.
Re: Nawaz Sharif means business to curb energy shortages..
Long term plans like more power plants etc will be meaningless if power theft and bill defaults are not tackled. And as I said before, some of the biggest defaulters are govt departments and industries owned by big fish that are friends with the Sharifs. Ittefaq foundries is one of the top Lesco defaulters.
true they have unsettled bills of about 40 million rupees with LESCO. I'm not sure how much electricity bill every month or year a mill (factory?) of that sort gets, but 40million rupees figure doesn't seem to be too big to think that they cannot pay or would not pay. and it has to be seen since how long these dues are lingering there. They have been talking about recoveries to start soon after first phase, and we must pressurize them to pay it off, actually start recovery from their own holdings first. But it still doesn't warrant for the whole effort to be declared as rubbish. Lets see what comes next
Re: Nawaz Sharif means business to curb energy shortages..
Not right away but i am betting NS team going to fire quiet a lot of people in coming months, they will probably shed over 25% of workforce and for the new management there will be performance targets for the medium term. Subsidies will be likely brought down by 30% to 50% in three years.
After three years of tight management and unloading of bad assets and hair cut ...well ESCO's will become prime assets of federal government to privatize.
As far 3-month, 6-month & 12-month treasury bills concerns, i think we can find buyer for 5 Billion $ within Pakistan, t-bills rate will be peg to current SBP base rate of 9.5% maybe for sweeten the deal they will add 1% premium over it business groups & banks with record money sitting in their accounts will flock over it.
Its going to be win-win situation for both people of Pakistan & business groups of Pakistan. Not a bad plan in such desperate situation.
The thing is that NS is putting Energy crisis short term measures on too many variables and subsequently long term ones too. Its a hard step to tackle bigger problems (theft, revenue, line losses) but its a must because this circular debt will pile up again if that continues.
Re: Nawaz Sharif means business to curb energy shortages..
see what i got by little googling
Daily Times - Leading News Resource of Pakistan
ittefaq foundries are no more owned by not-so-sharifs, they surrendered it to banks to settle some loan, and they were later auctioned, some industrial group from faisalabad bought ittefaq foundries then. and the outstanding balance is from the era when they were in exile and these factories were run probably by govt/banks
moral of the story: little research can save us from propagating lies
Re: Nawaz Sharif means business to curb energy shortages..
Sharifs ‘resigned’ from Ittefaq foundries in 1997 after giving it up as a replacement for their loans. Noone has bought Ittefaq Foundries yet, but there are bids in place. However, there is a little something called a stay order, which has held off the sale of Ittefaq Foundries. Reason being, that Sharif’s cousins etc are partners in it as well.
The company was placed with the banks in lieu of the loan they took out for Hudaibiya Mills. A bit of homework, other than being a smart alec, goes a long way.
And finally, so long as it is not sold off, all liabilities are due to the original owners of Ittefaq foundries.
Re: Nawaz Sharif means business to curb energy shortages..
Only for business men …Rich will get richer poor will get more poor
Gareebo ke liye peeli taxi aur dhobi ki dukainay aur qarzay
Re: Nawaz Sharif means business to curb energy shortages..
I feel stupid. What are you guys yapping about?
Re: Nawaz Sharif means business to curb energy shortages..
I feel stupid. What are you guys yapping about?
Nothing that concern any thing real.
Its like spectator talking to each other over a tape-ball evening cricket match.
Re: Nawaz Sharif means business to curb energy shortages..
I am so excited we entering in nawaz-sharif's paksitan.
Where awam thinks every thing is fine, good people doing right things.
Where corruption has a softer face.
Where every week there is one huge kick-back news story comes in engreezi newspaper.
Yet not interesting enough for my pooonjabi voters, attention.
where all "bary"(half a dozen people in key positions) hate each other more every day based on that hidden softer/corruption.
Eventually every thing crashes.
PS: welcome to munafiq pakistan, just as my people wanted it :)
Re: Nawaz Sharif means business to curb energy shortages..
whenever i read the title "nawaz means business" dil nu haath jiya paind ay pata nai kiun
Re: Nawaz Sharif means business to curb energy shortages..
I am so excited we entering in nawaz-sharif's paksitan. Where awam thinks every thing is fine, good people doing right things. Where corruption has a softer face. Where every week there is one huge kick-back news story comes in engreezi newspaper. Yet not interesting enough for my pooonjabi voters, attention.
where all "bary"(half a dozen people in key positions) hate each other more every day based on that hidden softer/corruption.
Eventually every thing crashes.
PS: welcome to munafiq pakistan, just as my people wanted it :)
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