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Companies having a value of Rs19 trillion losing Rs143 billion: Mian Zahid

Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Monday backed the decision of the government to sell or shut 84 state-run-enterprises to save billions and get the IMF programme restored.

The government has decided to sell or shut down 84 out of 212 companies while those reporting reduced losses could be revived through better supervision, good practices, and efficient administration, he said.

Mian Zahid Hussain said that the government and IMF are under agreement to restructure and bring transparency in failed companies and go for legislation in this regard.

Talking to the business community, the veteran business leader said that a report suggests that the assets of these companies are worth Rs19 trillion, they are generating revenue of Rs4 trillion and their losses are worth Rs143 billion.

Out of all the loss-making enterprises, the PIA, Railways, Power Companies, and National Highway Authority are responsible for 90 percent losses, and bringing them into profit will require political compromises.

Read more: Power sector marching towards problems: Mian Zahid Hussain

He recalled that many governments have promised to improve the working of these companies by adopting a host of measures but nothing could be done to overcome corruption, inefficiency, lack of investment, and political interference which resulted in colossal losses.

The business leader suggested that the companies which would be kept running should have professional management from the private sector to reduce the burden on the exchequer.

The administration of such failing institutions should be shielded from political interference and bureaucracy and those who lose jobs in the process should be compensated so that they can bring food to the table.