LCCI for rescue plan to make loss-making PSEs profitable

Lahore Chamber of Commerce and Industry (LCCI) has stressed the need for rescue plan to make the loss-making Public Sector Enterprises (PSEs) profitable. While talking to the Business Recorder, LCCI executive committee member Raja Adeel Ashfaq called for restructuring of loss-making PSEs to control heavy losses to the national exchequer.
He said that though "salvage plan" was well on the way as far as Pakistan Railways and Pakistan International Airlines (PIA) was concerned but situation in the other PSEs was quite disappointing.
Keeping in view the massive loss of around Rs 600 billion annually being caused by the PSEs, government should take measures on war footing to make these organisations profitable or go for the option of privatisation, he said. Ashfaq said that in the advanced economies like the United States, United Kingdom and Japan, the role of PSEs is minimal and the private sector is the most important instrument of socio-economic prosperity, and there is continued growth of privately-run corporations.
He said that the significance of PSEs cannot be ignored, in view of the fact that they remain the most employment-intensive and capital-intensive organisations. He suggested formation of a committee of experts from public and private sectors to revisit strategy and adopt methods which provide a new impetus to the PSEs.
He said that the committee should go deep into the broader political philosophy and vision under which the PSEs will be required to play their role in the new competitive environment. "PSEs of Pakistan should continue to remain the backbone of the economy and therefore their revival is critical to our economic survival. PSEs are the only industries that the nation can depend on to check further decline in our growth rate," he added.
He said that it is more necessary for the government to increase its efforts for revival of the PSEs. Greater autonomy and non interference in their functioning have to be guaranteed so that the country can reap full benefits of PSEs. He said that PSEs are not only industries for short-term economic and commercial gains but are our national assets. Ashfaq said that Pakistan International Airlines was in dire need of new blood and additional aircraft that could be possible with special efforts of the government. He said that cut in political interference, training of staff members and cost cutting measures could control the losses of the airline and streamlining of flight operations will lead to sustainable revenues to the PIA. He said that nepotism and political appointment should be avoided because it has devastated the national flag carrier.