KARACHI, Dec 13: Privatization of the KESC will have multi-dimensional effects that would cause hardship to common man as well as industry.

This was stated by the members of the KESC Bachao Shehri Action Committee at a press conference at the Karachi Press Club here on Monday.

Afeef Alvi, Dr Riaz Ahmad, Akhlaq Khan and S. G. A. Rizvi told newsmen that a delegation of the committee would apprise senators, MNAs and MPAs from Karachi of the demerits of the KESC's proposed privatization and the hardship the move would cause to citizens. They said that the legislators would be urged to influence the government in this regard.

They maintained that since the corporation was incurring huge losses, the private owner would resort to enhancing power tariff that would ultimately hit both domestic and industrial consumers.

They pointed out that due to expensive electricity, prices of industrial products would go up. This, they added, would obviously lead to a sharp decline in the exports of industrial goods. Moreover, the local industry would not more be in a position to compete in the international market.

The committee members feared a massive retrenchment in the KESC following its privatization. They pointed out that such a situation would further aggravate the already grim situation of employment in the country. They said that the closure of industries owing to the inevitable increase in power tariff would also result in joblessness.

Pointing out that the company was recovering financially as the loss which stood at Rs17 billion a few years back had new come down to Rs8 billion, they said that instead of privatizing the KESC, the authorities should hope for an even better situation as it was possible to make the public utility a profitable concern in the next few years.

They maintained that the major reason for the losses was mismanagement in the company, and called for bringing about an improvement in this regard. They pointed out that the market value of the KESC assets was not being quoted in the balance sheets. Instead, they alleged, the book value which appeared just around one per cent of the actual value was mentioned to favour the potential buyer.

At present, the KESC line losses stood at around 40 per cent which reflected a loss of Rs20 billion, they said, adding that these losses could be brought down to a realistic level through better management.

The committee members demanded regularization of the jobs of all contractual employees and lifting of the ban trade union activities in the KESC. They said that the KESC was being privatized to please the international financial institutions. They feared that the public utility would be handed over to some foreign party at throw away price.

They said that they were also in contact with the like-minded Wapda workers to put in joint efforts against the proposed privatization of KESC and Wapda, as well as dividing Wapda into smaller entities.