Mere disinvestments

[Abdussamad]

This article on The News talks about how the privatization of various engineering companies in the past led to deindustrialization. Due to corruption the companies were sold for a song and the people purchasing them bought them for their real estate rather than to actually run the companies as businesses. Most of the companies failed to operate successfully in the private sector.

There may be more reasons for these companies' failure than the author talks about. Perhaps foreign competition was one factor.

The author concludes by advising against further privatization:

Learning from the past experience of privatization of engineering industrial units, the government would be well advised not to undertake privatization of the remaining units under the State Engineering Corporation, and instead, to adopt alternative strategy for restructuring and strengthening of these SOEs.

 

[Khafee]

This article on The News talks about how the privatization of various engineering companies in the past led to deindustrialization. Due to corruption the companies were sold for a song and the people purchasing them bought them for their real estate rather than to actually run the companies as businesses. Most of the companies failed to operate successfully in the private sector.

There may be more reasons for these companies' failure than the author talks about. Perhaps foreign competition was one factor.

Asset stripping is a tactic, that can be detrimental to a nations economy & industrial base

 

[zulu]

It is dear @Khafee but if done with proper planning and clear objective through clean process.Reviving in loss/sick/closed industry never easy but hamary yahan tu privatization ky naam par bandar bant chalti hai.kabhi ek old story sunaoo gaa MCB ki mian mansha ko by Mian nawaz Sharif old hai par gold hai mian sahib purany chor hain waisy bhi

Asset stripping is a tactic, that can be detrimental to a nations economy & industrial base

 

[Baburfromsarmarkand]

Government has no profit incentive. They get free money via budgets. So they go through the motions. A private firm must earn its bread. Private will always out compete public.

 

[Samlee]

This article on The News talks about how the privatization of various engineering companies in the past led to deindustrialization. Due to corruption the companies were sold for a song and the people purchasing them bought them for their real estate rather than to actually run the companies as businesses. Most of the companies failed to operate successfully in the private sector.

There may be more reasons for these companies' failure than the author talks about. Perhaps foreign competition was one factor.

The author concludes by advising against further privatization:

Yes Privatization Resulted In The Closure Of Many Profit Making SOEs
Like Zealpak Cement and Metropolitn Steel Also Pakistan Textile Machine Company Spinning Machine Company Among Others.

Another Of The Great Achievements Of Nawaz SHarif

 

[valkyr_96]

Asset stripping is a tactic, that can be detrimental to a nations economy & industrial base

That is basically one avenue of distressed asset investing and the fast cheapest and most profitable given the penny on the dollar acquisition. Turnaround is time consuming and investment demanding. Pakistan lacks entrepreneurship and we are too focused on short term FDI...foregoing its long term effects.