China Pakistan Economic Corridor: Public Accounts Company asks Privatization Committee to remove Pakistan Railways and State Engineering Corporation from Privatization List

0
72

CPEC has barely kicked off and the economic benefits from it have already started to translate into reality. Therefore, it came as no surprise when the public account company asked the privatization commission of Pakistan to remove Pakistan Railways and State Engineering Corporation from the list of the organizations that are set to be privatized.

Pakistan Railways Wishes to be Removed from Privatization List

It was 8th of December when Pakistan Railways formally informed privatization commission of Pakistan that the railways tracks are to be upgraded for the transportation of the goods of the Chinese companies. Pakistan Railways suggested that since it would go onto earn a huge profit it wishes to be removed from the privatization list.

State Engineering Corporation Wishes to be Removed from Privatization List

Similarly, the State Engineering Corporation and Heavy Electrical Complex Managing Director(subsidiary of State Engineering Corporation)informed Pakistan Privatization Commission that PMTF Pakistan Machine Tool Factory( State Engineering Corporation sister concern) is likely to become profitable.

Elaborating on its stance it suggested that since army has created a security division for safeguarding CPEC, army is once again emerging as its major client. Though army was a regular client of Pakistan Machine Tool Factory and was buying anti-tank guns from it, the last few years witnessed a drop in the army purchase as the army decided to purchase the weapons through some other source.

This led to Pakistan Machine Tool Factory incurring losses after having lost its major client. However, as the CPEC has entered its operational stage army is likely to buy weapons worth 700 million from Pakistan Machine Tool Factory. This decision has led to the revival of the Pakistan Machine Tool Factory which is now expected to yield profits.

Elaborating further on the subject he said Frontier Constabulary and Rangers were also among the prominent buyers of Pakistan Machine Tool Factory and paid as much as 450 million to it in lieu of weapons purchase.

He was of the point of view that Heavy Electrical Complex too has significantly improved its revenue and should not be privatized.

Dr. Arif Alvi who happens to be a member of the Public Accounts Committee went on to endorse the HEC management stance and suggested that since the future prospects appear bright it should not be privatized.

Keeping in view the latest scenario Dr Azra Fazal Pechuho, who was presiding the meeting directed the Public Accounts Committee to remove State Engineering Corporation from the approved list of the entities that are set to be privatized.

LEAVE A REPLY

Please enter your comment!
Please enter your name here