KARACHI:Senior economist Dr. Kaiser Bengali has suggested running Pakistan Steel Mills under the Public-Private Partnership as the present government wanted to privatize it and workers are not able to take it over, so private sector with financial investment would make it possible to run.
Speaking at a consultation on privatization of public sector enterprises organized by Pakistan Institute of Labour Education and Research (PILER) at Arts Council of Pakistan on Saturday, Dr. Bengali pointed out that the main excuse for privatization is given by the government that workers are responsible for the loss of public entities like Pakistan Steel Mills.
“It was the inefficiency of the management of the public sector enterprises that they failed to invest to improve performance,” he said adding that it was a fact that there were more employment in the public entities, but the losses were not because of them.
Pakistan Steel was set up to provide raw material to the engineering industries which were to be set up in the surrounding industrial areas like Dhabeji and Bin Qasim, where surplus workers could have been utilized.
He said there is a need to have an analysis of the profit and loss account and balance sheet and see why it was in losses. What are its fixed assets and when they were increased. The new buyers have to buy with assets and liabilities. You need to have data as when Habib Bank was privatized the government had to free it from liabilities.
Through Public-Private partnership management of Steel Mills will be handed over to the private sector, he said adding “I know many companies are interested to take control of Pakistan Steel but it needs to have new investment.”
Former Chief Economist Dr. Pervaiz Tahir said during the COVID-19 Pandemic period the government has removed thousands of workers from Pakistan and more are being rendered unemployed. Such type of privatization during a pandemic is harmful for society and the economy. “It seems the government does not have any intention to run the Pakistan Steel Mills and we don’t have a successful example of running a factory by workers.
He suggested a Public-Private-Workers Participation model to run Pakistan Steel Mills, in which workers be involved. But for that purpose the workers should consider this option if they would be able to run it or not.
Another leading economist Dr. Asad Sayeed suggested to provide social protection or unemployment allowance to those workers who are laid off.
“In my view, the workers of public sector enterprises be retrained and those lost job be provided retraining and skills. An iterime system of social protection be put in place so workers’ economic problems are solved.
Dr. Asad Sayeed said unemployment compensation and re-training should be initiated by the government. According to him handing over Steel Mills to the provincial government of Sindh is not viable. Sindh government would not bear the heavy losses and the federal government makes policies on taxation.
Senior lawyer Faisal Siddiqi underlined the need for strong mobilization of workers against privatization. In fact, he said the courts cannot help trade unions much and it would take a lot of time in legal battle.
Siddiqui said the courts cannot stop the government to do privatization.
Karamat Ali, PILER Executive Director said the privatization process will harm the entire economy and workers rights. “We have to be united and fight against the anti-workers policies of the government” he remarked. Representatives of trade unions of Pakistan Steel and WAPDA also attended the consultation. Prominent among them were Habibuddin Junaidi, Mirza Masood Ahmed (Pakistan Steel Mills), All Pakistan WAPDA Hydro Electric Workers Union representatives including Azam Khan (provincial joint secretary), Muhammad Hanif Khan (Central Vice President), Siraj Beg, Hashim Ali, Shaukat Qaimkhani, Sajidullah Rajput and Ismail Khoso.