LAHORE, March 14: Privatization Minister Altaf M Saleem said here on Thursday that the privatization of the public sector industrial units was in the larger national interest and would help strengthen the economy.

Addressing the participants of 81st advanced course at National Institute of Public Administration, he said the process was going on smoothly and in a transparent manner.

He said the vital national interests especially the defence requirements were being kept in view in the privatization of industrial units.

The minister said the public sector industrial units had been suffering huge losses due to various factors, including meddling by the authorities, overstaffing and mismanagement, and there was no other way out to this vicious circle except to place these in private hands.

He said the Privatization Commission expected the bidding of UBL, National Investment Trust, PTCL, Karachi Electric Supply Corporation, Pakistan State Oil, OGDC and Habib Bank during the next six months.

Mr Altaf said the KESC was suffering a loss of Rs16 billion every year and its total liabilities by now had swelled up to Rs92 billion.

He said the public sector banks had suffered as they advanced loans without sufficient safeguards. The efficiency of the public sector industries and businesses had been low due to various factors, including low salaries and incompetent staff. The quality of services in telecom, banks, etc., was low and their rates were higher.

He said the privatization of OGDC would result in its increased efficiency in the shape of more drilling of oil wells.

Explaining the rationale of the Privatization process, Mr Altaf said that except Cuba and Mangolia, the entire world was moving in the direction of privatization now.

Replying to a question, the minister said that employees in the privatized units were being offered golden handshake, and those who did not opt for handshake, were assured one year service. During this period, they could prove their worth and thus secure their job.

To another question, he said that almost 50 per cent of the industrial units privatized so far were showing better performance while the working of 25 per cent remained static and that of the remaining 25 per cent had declined.—APP