Pr

In 2010-2011 budget presentation, Finance Minister Dr. Abdul Hafeez sheikh highlighted that PSE (public sector enterprises) are inefficient, have very poor management and are causing huge loss annually at Exchequer. There are eight PSE operating in Pakistan.

* PIA(Pakistan international Airline)

* PR(Pakistan Railway)

* TCP

* PASSCO

* PEPCO(Pakistan Electric power Company)

* Steel Mills

* NHA(National highway authority)

* Utility Stores

Out of these 8 PSE alone the power sector cost the exchequer RS 180 billion in FY 2009-2010.While Railways, PIA, TCP, PASSCO, Steel Mills, NHA and Utility Stores add an additional Rs 65 billion.

Such a colossal loss of Rs 245 Billion destabilizes the entire budgetary process and breaches our debt ceiling as a result we seek for external assistance. How long the budget will allow the government to finance these poor institutions. If we talk about PR (Pakistan railway) in the current fiscal year Rs 23 billion released as a subsidy for PR to meets its financial need. On the other hand the revenue earned through PR in the FY 2009-2010 was RS 22 Billion & in the current fiscal year it is expected to be decline to the RS 18 billion. According to railway ministery the daily expenditure of the PR is 2.5 billion rupees whereas its daily earnings were estimated around 1.5 to 1.7 billion rupees. In the last three years it has eaten up Rs52 billion. How long the government will create fiscal space to finance PR. Can a country like Pakistan afford to keep these institutions floating?

Finance Minister Dr. Abdul Hafeez Sheikh himself committed before the parliament that in current FY the objective of government would be to restructure these eight major Public sector enterprises to make these PSE financially solvent. Although the restructuring decision is under discussion nowadays but restructuring is not a merely solution. In the past these PSE restructured many times but changing the top management is not a solution because they can not make loss making institution in the profitable ones.

The only solution is to privatize these institutions especially the PR. At least this will save more than Rs 23 billion every year. There is an acute need in Pakistan that its people should be educated, have a standard health, Security, and the most important one the energy crises to be addressed. RS 23 billion for PR financing & Sum of 245 Billion for PSE per annum is sufficient to provide these facilities to the public. These resources should be diverted to improve the living standards of the millions of Pakistanis.