KARACHI: Prime Minister Shehbaz Sharif’s ambitious plan to privatise loss-making public enterprises faced a first setback on Wednesday when his key ally in the Centre, the Pakistan Peoples Party (PPP), opposed the idea and suggested that the federal government go for public-private partnerships to restore institutions like PIA and Steel Mills instead of selling them to private businesses.
The PPP also vowed that it would take up the matter with Islamabad and try to convince the federal government to abandon the idea of privatising public institutions. The party also believes that such decisions should not be made without the input of the government of Sindh, where most of such giant institutions are located.
“We believe that if you (federal government) are thinking about the privatisation of PIA, Steels Mills or other institutions like that, you should go for public-private partnership instead going for an outright privatisation,” PPP Chairman Bilawal Bhutto-Zardari said while speaking at a function organised by the People’s Labor Bureau (PLB) at the Karachi Arts Council on World Labour Day.
Bilawal advocates for public-private partnerships, says Sindh govt ready to acquire Steel Mills
“Here in Sindh, we launched several projects under public-private partnerships, which proved effective and helped restore several institutions. We propose the same to the federal government,” Mr Bhutto-Zardari said.
“We would definitely take it up with the federal government and try to convince the finance minister for the option of public-private partnership instead of privatisation. That would restore the institutions, and through that way, we would be able to contribute to our economy positively,” he said.
Talking about the Pakistan Steel Mills, Mr Bhutto-Zardari said the land of the industrial giant belongs to the Sindh government and decisions regarding the institution should involve the province’s consent.
“We believe that if the federal government doesn’t want to operate Steel Mills anymore, the Sindh government would be willing to acquire it. And we are confident we can revive it by running it under the same public-private partnership,” the PPP chairman said.
To strengthen his argument, he cited “successful” projects in Sindh under the public-private partnership, which he said proved “effective collaboration” between public and private sectors.
He advocated for a similar approach for institutions under consideration for privatisation, suggesting that the government sell some shares and engage with the private sector to foster their development, thereby benefiting Pakistan and its economy.
He hoped that the PPP-led provincial governments in Sindh and Balochistan would prioritise salary increases in the forthcoming budget and his party would also try to take up the same issue with the federal government.
“I am confident that the PPP governments in Sindh and Balochistan would take care of the working class and raise salaries in the upcoming budget,” Mr Bhutto-Zardari said to the roar of the crowd, which demanded the same move from the federal government as well. “We would definitely ask the federal government as well to take some initiative in this regard,” he added.
Published in Dawn, May 2nd, 2024
