Re: Pakistan Rich list (official): Zardari 2nd richest with 1.8 billion dollars.
*Nawaz Sharif's Privatization
*[FONT=Arial,Arial]As Chief Minister Punjab, Nawaz Sharif presided over the liquidation/ privatization of several units of Punjab Industrial and Development Board (PIDC) like Pasrur Sugar Mills, Samundri Sugar, Rahwali Sugar, Paras Textile, Harapa Textile and Ghazi Textile. How and on what prices these units were sold is still a secret but according to Company Review in the daily DAWN in May 1991, Pasrur Sugar Mills was sold to United Sugar Mills of United group for a **[FONT=Arial,Arial]" token price of Rs one only". *[FONT=Arial,Arial]Samundri Sugar Mills was sold to Monoos and Rahwali Sugar to a Muslim League politician Sheikh Mansoor, following single line advertisement in newspapers under the caption, " Bids invited for Rahwali Sugar Mills". The recklessness and favoritism shown in privatization of the PIDB units by Chief Minister Nawaz Sharif was to become the hallmark of his privatization as Prime Minister. British Prime Minister from 1979-90 Margaret Thatcher carried out one of the most successful privatization programme under which nearly four dozen govt. entities including British Steel, British Airways, the telephone system, water, electric and gas companies, the coal mines and the railroads were sold for nearly 100 billion dollars. Her promise to " roll back the frontier of the State" got the fancy of many world leaders. Both Benazir who ruled Islamabad as prime minister in 1988 and Nawaz Sharif who was the uncrowned King of Punjab during Bhutto's rule started peddling privatization as the linchpin of their economic agenda.
In April 1989, within four months of coming into power, Benazir govt. employed N.M.Rothschild & Sons to undertake study of privatization strategy and selection of projects suitable for privatization. The consultants who submitted report on
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22nd May, 1989 suggested a strategy of widespread ownership and identified 14 units for privatization in two phases. These units were Muslim Commercial Bank, Habib Bank, PIA, PSO, Sui Northern Gas Pipeline, Sui Southern, Pakistan National Shipping, Pak-Saudi Fertilizer, National Refinery, Pak-Suzuki Motors, Gharibwal Cement, Al-Ghazi Tractors, Millat Tractors adn Mustehkam Cement. In its first term, Benazir govt. tried to privatize Sui Southern Gas Company and engaged a British Consultant Morgan Grenfell who were paid US $ 39,431 and a Pakistani Consultant Sidat Hyder Aslam was paid Rs 4,20,000. However after considerable spade work, proposal to privatize Sui Southern was dropped and it was decided that 10% shares of PIA, 30-40% shares of Pak-Saudi Fertilizer and 60% shares of MCB will be privatized. The govt. however could not carry out the proposed plan and only 10% shares of PIA were divested before Benazir was dismissed on August 5,1990 giving way to the first Nawaz Sharif government. Nawaz Sharif was a reaction to Zulfikar Ali Bhutto and like Bhutto's nationalization his privatization was swift. *[FONT=Arial,Arial]He lacked Bhutto's chrisma but he countered Bhutto's idealogy, by imitating him. In many ways he imitated Bhutto better than Bhutto's own daughter Benazir. *[FONT=Arial,Arial]Within Six weeks of coming into power he privatized Muslim Commercial Bank (MCB) to a national group of 12 leading industrialists led by Mian Mansha of Nishat . A Privatization Commission was set up under the chairmanship of General Saeed Qadir who sold off the State enterprises as hearily as he had poured billions of tax payer's money into building them as Minister for Production under Zia ul Haq. The Commission invited bids for 25 units between March and July 1991 but the results were not encouraging since no bid was received for nine units and the response for the remaining units was also poor. In August 1991 the Commission invited bids for 100 units and the national newspapers described it as the world's single biggest lot offered for privatization. A total of 235 bids for 81 units were received for which 26 bids were accepted by the govt. In addition to Privatization Commission of Saeed Qadir, govt. set up a Commission for Privatization of WAPDA headed by former Secretary Abdul Rahim Mahsud, a committee for privatization of Pakistan Telecommunication under Deputy Chairman Planning Commission A G N Kazi and another for privatization of banks headed by Governor State Bank. Completely diverse and independant procedures were worked out for privatization of units of these four entities.
Nawaz Sharif had earmarked 115 units for privatization and when his government was dismissed on April 18,1993, he had privatized two banks, 68 industrial units and 10% Shares of Sui Northern Gas Pipeline for a consideration of Rs 12,018 million. As opposition leader, Benazir hounded his privatization with
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charges of corruption and leading to concentration of wealth in few hands. So widespread were the charges of concentration of wealth that his government was forced to set up a committee headed by former Finance Secretary H U Beg to investigate into it. *[FONT=Arial,Arial]The report of the committee never saw the light of the day. **[FONT=Arial,Arial]A committee was also set up in the Monoply Control Authority to look into the allegations that cement prices have escalated in the market because of the monoply created by the privatization of five cement factories to Mian Mansha and his associates. Out of 88 industrial units privatized to date, 19 were vegetable ghee units and 16 roti plants and rice-husking units while 20 bigger units accounted for more than half of the privatized assets and it were these units which were privatized to the big business. Mansha and his associates walked away with MCB and five cement plants, Schon group got Pak-China Fertilizer and National Fibre, Takakkal got Baluchistan Wheels adn Naya Daur Motors while Bibojee group of Habib Ullah Khattak got back the National Motors (Originally Gandhara Motors). An unknown person Sikandar Jatoi was successful in bidding for Metropolitan Steel, Zeal Pak Cement and Shikarpur Rice. When Nawaz was dismissed on April 18,1993, the Dissolution Order listed " the lack of transparency in the process of privatization and in the disposal of public/ govt. properties" as one of the grounds for dismissal. The Attorny General in his written reply and arguments before the Supreme Court charged that the process of privatization lacked transparency, the reference prices were changed, methodology for fixing the reference prices was not made within the stipulated time and the mode of transfer of management enabled the new owners to pay the balance from windfall profits. Although Nawaz government was restored by Supreme Court, three judges found its privatization to be faulty and in conflict with the provisions of the constitution. The dissenting Justice Sajjad Ali Shah found corruption in privatization as a valid ground for dismissal of the government.