KARACHI, April 21: Pakistan State Oil chief executive Tariq Kirmani declared on Wednesday that his company was not a strategic organization and it should be treated like any other public sector commercial entity for privatization.

Speaking on the last and third day of a convention of the Management Association of Pakistan, Mr Kirmani said that the nature of business and share ownership structure of PSO was such that it had to be offered as a single entity to any investor.

Tariq Amin, chairman of the Sindh Privatization Commission, chaired the session. He informed the audience that PSO's turnaround as a public sector entity under a professional management had been taken up as case study at Harvard. "As a Pakistani I would like PSO be handed over to a Pakistani investor," he replied to a question, but hastily added that if a foreign investor offers more money then PSO could be given under his control.

Mumtaz Saeed, a retired banker and a well-known corporate leader, reminded the PSO chief executive officer that when privatization was launched in Malaysia many years ago, the buzz word was bhumiputra (son of the soil). For economic sovereignty, Mr Saeed asserted that key enterprises should remain under the control of the nationals.

Tariq Kirmani said that the defence ministry had some years ago expressed the view that PSO was involved in a strategic business but now there was no such reservations on privatization of his company.

In the event of any strategy like war, he said, the PSO whether it was in control of Pakistani or foreign investor, would face the same consequences of oil supply. The PSO chief gave 30 minutes presentation on "Is privatization of public sector enterprises, which have turned around is necessary?". The subject was obviously with specific reference to PSO, which showed 42 per cent improvement after tax payment in a year.

Mr Kirmani claimed his success in making a turnaround of PSO because of his focus on human resource development in the company, independent management practices and taking on pressures to the extent that military officers of the National Accountability Bureau were stopped from visiting his company premises to harass executives and above all treating employees at all level with respect and dignity and making everyone equal before the company regulations.

"The government has no business to do business," he declared and wondered as to how could a government be involved in making bread, cigarettes, run petrol pumps and other business. He said the government's job was to provide an enabling environment, control and regulate the business.

Mr Kirmani said the privatization process was set in motion by former British premier Margret Thatcher who privatized everything during the late seventies and eighties. Since then 6,800 public sector enterprises have been privatized, the largest number in German Democratic Republic, followed by companies in East Europe and other parts.

Answering another question, Mr Kirmani said that he had no problem with the union of employees who maintained best relations with the management and were treated with respect.

In the first session of the day, Syed Masood Ali Naqvi spoke on "Role of internal and external auditors in changing corporate environment".

He pointed out that there was no specific or precise definition of corporate responsibility, but what was least expected from the executives and directors of a corporation was that they would abide by the law of the land and they would be loyal to the declared objectives of the corporation and stake holders.

He elaborated at length on the external and internal audit and the objectives. Jeremy Pike made his presentation on "Corporate social responsibilities and communication with stakeholders is business need.

He said the British American tobacco was involved in business in 180 countries of the world with more than 300 brands and showed a total turnover of 25.6 billion pounds during the year 2003.

Musharraf Hai, chairperson of Unilever Pakistan, made her presentation on "How supply chain management can change the fortune of the business". The three-day MAP convention was concluded on Wednesday after Dr Ehasnul Haq, dean of Business School LUMS, delivered his lecture on "Need to build regional training and management leadership programme".