Sialkot (Daily TheNews / NewsPost / Saturday, March 01, 2014) – Privatisation is essential in certain cases – and in the current scenario – but past experiences with such privatisation must be kept in mind. A major example in this regard is the Pakistan Telecommunication Company Limited where sale of 26 percent shares resulted in handing over the administrative control of the organisation to the purchaser.
Despite holding 62 percent shares of the entity, it is strange that full administrative control is given to a mere 26 percent shareholder.
The government failed to recover $800m from the company even after six years. Both the previous and current governments failed to get this amount despite numerous attempts. Moreover, the rights of the 40,000 ex-employees have been usurped by the company by not allowing increases announced by the government as determined in the SPA (Share Purchase Agreement).
These elderly retired civil servants served the country all their lives but have now been thrown aside by the purchaser. The government of Pakistan, despite being the guarantor of the rights of these pensioners, is also keeping mum on the issue. These points may be considered before privatising more organisations in the interest of the country as well as their employees.