Zubair Umar :k:
Re: Pakistan’s Bank Privatization First in Long Line of Deals
How the hell is privatization going to help??
Re: Pakistan’s Bank Privatization First in Long Line of Deals
How the hell is privatization going to help??
Other than inefficiencies, corruption and nepotism, we see that
Government run industries = Parking space for your political supporters. E.G. PIA full of PPP jiyalas.
Government run banks = Source of free finance for politicians. Everyone enjoyed 'loans' of billions of rupees from such banks that were never returned.
Even if you give away such 'assets' for $1, Pakistan would still be better off.
Re: Pakistan’s Bank Privatization First in Long Line of Deals
Hopefully this will bring qualified people in to work force and not criminals.
As it is, the bank managers and cashiers themselves are involved in robbing people.
Re: Pakistan’s Bank Privatization First in Long Line of Deals
Other than inefficiencies, corruption and nepotism, we see that
Government run industries = Parking space for your political supporters. E.G. PIA full of PPP jiyalas.
Government run banks = Source of free finance for politicians. Everyone enjoyed 'loans' of billions of rupees from such banks that were never returned.
Even if you give away such 'assets' for $1, Pakistan would still be better off.
Agree with the first part, but what is the compulsion for the bold part?
Almost any nationalized institution, no matter how shabby, has the potential to fetch top dollar. But there is a large amount of inherent corruption in our system that some how compels our rulers to short change the public exchequer, as it is not them taking the loss. In the recent UBL privatization, a lot of fingers are being raised at the hastily arranged process, and the below market price at which it has been sold. No answers from the govt on that so far, and neither do I expect any, as PMLN isnt exactly known for its transparency.
Re: Pakistan’s Bank Privatization First in Long Line of Deals
^ No compulsion.
Just saying that if you run an industry at continuous losses, selling it at $1 is still more beneficial than keeping it. It is not about transparency, it is about simple logic that no cash flow is better than negative cash flow. PIA, for example, has negative net worth and has been running on huge losses for years now with government injecting capital every now and then.
What is the price of such assets above $1? markets should openly and transparently determine, I'd agree with that.