PTCL model apply for the PIA privatisation

[insaan]

PTCL model apply for the PIA privatisation



MT Report: On the plea of restructuring, Nawaz government is ready to handover national flying

carrier Pakistan International Airlines (PIA) to a Potential Strategic Investor at throw away

prices. Pakistans most important strategic national asset will be handedover to an international

competitor of the PIA by the Nawaz Sharif and associates as Public Private Partnership just

by offering him 25 30 per cent share of the airline, high placed sources disclosed Midway

Times.

Just after kicking off the deal, the proposed Potential Strategic Investor will take over the

driving seat of the airline. It is not necessary that it injects the contracted investment in the

airline, sources said.

The Pakistani government had privatised the Karachi Electric Supply Corporation (KESC) on the

promise to bring investment and modernisation of the equipment but the buyer did not invest a

single penny in the KESC.

The government is going to apply the PTCL model in PIA that is more worst. In 2006, Pakistan

sold 26 per cent shares in PTCL to Abu Dhabi-based Etisalat for $2.6 billion along with

management control. Later on, the then government bowed to Etisalats demand of giving it 51

per cent voting rights despite having a 26 per cent stake.

After making initial payments, Etisalat withheld six tranches totalling $788 million following a

claim over 136 properties. The government has already transferred over 3,300 properties in the

name of PTCL but Etisalat is refused to pay $665 million on this account in violation of the

understanding reached with Pakistan authorities.

Now, the wizards of Nawaz Government Ishaq Dar, the finance minister and Shahid Khaqan

Abbasi, former chairman of PIAC and minister for petroleum and natural resources have done

all the spade work to apply this PTCL model over PIA.

Just to make PIA more profitabale for the proposed strategic investor, the federal government is

pumping money in the organisation. Recently, the federal government is approved Rs7 billion to

pay off the liabilities of vendors.


ptcl-model-apply-for-the-pia-privatisation-2/#more-1926​

 

[values]

Vow,again same drama is going to replay but Cheater-L supported media will take as a historic decision of Cheater-L.Salut to media who constantly malign KPK govt and hiding sins of Nawaz kingdom.

 

[iltaf]

I work in PTCL and I know that privitization has helped PTCL otherwise it would have ended the same fate like that of Railways. Anyways the deal with Etisilat is totally absurd, and not in govt favor. Etisilat still has to pay govt Pakistan that huge sum although SingTel (Singapore Telecommunication) was offering a good deal to Paki govt as compared to Etisilat but Nawaz Leage is more inclined to UAE/Saudia Sheikhs for the known reasons :)

 

[the.paki]

i work in ptcl and i know that privitization has helped ptcl otherwise it would have ended the same fate like that of railways. Anyways the deal with etisilat is totally absurd, and not in govt favor. Etisilat still has to pay govt pakistan that huge sum although singtel (singapore telecommunication) was offering a good deal to paki govt as compared to etisilat but nawaz leage is more inclined to uae/saudia sheikhs for the known reasons :)

can you plz tell me is govt. Of pakistan getting 66 % of profit as they have 66 % shares in pia

 

[the.paki]

I am in strong favour of privitization but it should be transparent and price should be fair .
i think PTCL model is a good one as it has help improve performance a lot plus govt. is getting 66 % profit
i would be very happy if PIA is bought by a europeon or american company

 

[iltaf]

can you plz tell me is govt. Of pakistan getting 66 % of profit as they have 66 % shares in pia

In PTCL, the shares percentage is as under:

62% Govt shares
12% employee shares / stock exchange shares
26% Etisilat shares

 

[ranajunaid]

if the model is same as ptcl then i have no problem. PTCL has improved a lot in past few years after privatization. Though i agree its not perfect but come on guys its much better then before so if PIA can do the same then why not.

 

[miafridi]

Agar inhi conditions per dena hai k Investment necessary nahi unki taraf say bas woh sirf isay profitable bana de toh 30 percent profit unka, to kia is say acha nai tah k unkay profesionals ko hire kar liya jata salary per k woh is ko profitable bana de? Salaray to local log bhi letay hai. toh agar unhay todi ziada salaray de detay toh kia bura hota. 30 percent profit toh bach jata?

 

[the.paki]

in ptcl, the shares percentage is as under:

62% govt shares
12% employee shares / stock exchange shares
26% etisilat shares

buddy still my question unanswered . I know that govt. Has got 62 % shares but are they getting 62% revenue as well?
Becuz i never heard any news about govt. Getting ptcl 62% revenues

 

[Nice2MU]

I work in PTCL and I know that privitization has helped PTCL otherwise it would have ended the same fate like that of Railways. Anyways the deal with Etisilat is totally absurd, and not in govt favor. Etisilat still has to pay govt Pakistan that huge sum although SingTel (Singapore Telecommunication) was offering a good deal to Paki govt as compared to Etisilat but Nawaz Leage is more inclined to UAE/Saudia Sheikhs for the known reasons :)

I disagree with you that PTCL will ended up like Railways. PTCL on the time of privatization was earning more than Rs. 20 Bn/ year but still it was sold for nothing and as you said Etisilate even didn't pay the whole payment at that time then what was the benefit Pakistan got from privatizing it?

OGDCL is also a profitable organisation now a days so you mean it should also be privatised due the fear that it will be ended like Railways?

These are not the department who can't earn but the people specially political parties, who bring these departments to this level to sell to their cronies or for a big chunk of commission. The same is happening in case of PIA as well.

 

[iltaf]

I disagree with you that PTCL will ended up like Railways. PTCL on the time of privatization was earning more than Rs. 20 Bn/ year but still it was sold for nothing and as you said Etisilate even didn't pay the whole payment at that time then what was the benefit Pakistan got from privatizing it?

OGDCL is also a profitable organisation now a days so you mean it should also be privatised due the fear that it will be ended like Railways?

These are not the department who can't earn but the people specially political parties, who bring these departments to this level to sell to their cronies or for a big chunk of commission. The same is happening in case of PIA as well.

Yes, I would agree with you that the deal with Etisilat wasn't good enough, it could have been much better. PTCL was earning but its revenue didn't shrink due to privitization rather due to market competition (gsm based companies) in telephony services.
And yes, PTCL was headed for Railways fate due to surplus staff, enefficient use of resources and the Sarkari Afasaran mentality. After privitazation these areas have been focused and improved and still a process of improvement is underway.
Now we work much like that of private company environment.