KARACHI, Aug 6: The privatization of National Investment Trust (NIT) is in an advanced stage and the government will privatize its 51 per cent management share soon. This was stated by Privatization Secretary M. Tehseen Khan Iqbal while talking to reporters at the first national conference on privatization here on Saturday. The conference was organized by the Institute of Cost and Management Accountants of Pakistan in collaboration with the ministry of privatization and investment.

He said the net asset value of NIT was estimated at about Rs60 to 70 billion. “The portfolio of NIT has been divided into five portions to facilitate its privatization because of the magnitude of the transaction,” he added.

Giving the reason for delay, Mr Iqbal said the government had issued the letter of comfort to three banks, including NBP, Bank of Punjab and Faisal Bank, for NIT units at a price of Rs13.7 per unit some years ago to facilitate NIT to meet its obligations.

Earlier speaking at the conference, Mr Iqbal says it is not the job of the government to run businesses that deviates the government from its original duties of economic management, security of the people and property, creating enabling environment for business, social welfare of people, etc.

About the privatization of profit-making entities, he said that PTCL could have earned Rs40 billion profit under the private sector management instead of Rs29 billion.

Speaking as a special guest at the concluding session, Karachi Chamber of Commerce and Industry President Khalid Firoz suggested earmarking some percentage of the proceeds of the privatization for the development of infrastructure.

He said there was no harm in handing over the ownership to the foreigners, except for strategic and security related concerns. But if still there is pressure from the people, he said, the government should give preference to the local investors in such cases.

“The government has been subsidizing Rs50 billion annually to Wapda and KESC, but still they cannot supply electricity at reasonable rates. So we, the taxpayers are doubly suffered, first by paying taxes to the government that finances subsidy and second by paying higher rate of electricity,” he argued.

The Chairman, Board of Directors, Karachi Stock Exchange, Mohammad Yasin Lakhani, said there would be a bull-run in the local capital market, but in the same breath he advised caution.

Speaking as a chief guest, he said they were mistaken who said that the government only suffered loss on paper when the KSE index fell. The government holds 43 per cent stakes in the KSE and bearish spell causes actual loss to all stakeholders.

Pakistan State Oil Chairman Pervaiz Kausar underlined the need for more serious efforts and result-oriented strategy for the development of the water and energy sector. The PSO chief said future wars in the world would be on water and energy sources. Thus Pakistan had a lot to do in these sectors.

He informed the participants that Pakistan was the lowest in per capita consumption of energy. He said the main objective behind the privatization should be the welfare of people.—APP