LCCI for restructuring of loss-making SOEs to save forex
Lahore (MNP) The Lahore Chamber of Commerce & Industry on Thursday called for restructuring of loss-making State Owned Enterprises to control heavy loss to the national exchequer and for saving precious foreign exchange.
In a statement issued here, LCCI President Kashif Anwar, Senior Vice President Zafar Mahmood Chaudhry and Vice President Adnan Khalid Butt said that keeping in view the massive loss being caused by the State Owned Enterprises, the government should take measures on war footing to make these organizations profitable or go for the option of privatization.
They said that the outstanding domestic debt and liabilities of the State Owned Enterprises stood at Rs. 1,972 Billion in December 2022. The losses of State Owned Enterprises result in misallocation of Taxpayers money and reduce the fiscal space for social sector development. The Government must lay down a clear plan about restructuring of State Owned Enterprises.
They said that every year, a considerable amount from taxes collected from the business community has to be allocated by the Government to fulfill the debt obligations of the loss making state owned enterprises, which can otherwise be utilized for constructive development activities.
They said that in the advanced economies like the United States, United Kingdom and Japan etc, the role of State Owned Enterprises is minimal and the private sector is the most important instrument of socio-economic prosperity, and there is continued growth of privately-run corporations.
LCCI President Kashif Anwar said that the significance of State Owned Enterprises cannot be ignored, in view of the fact that they remain the most employment-intensive and capital-intensive organizations.
They suggested formation of a committee of experts from public and private sectors to revisit strategy and adopt methods which provide a new impetus to the State Owned Enterprises. They said that the committee should go deep into the broader political philosophy and vision under which the SOEs can play their role in the new competitive environment.
They said that State Owned Enterprises of Pakistan should continue to remain the backbone of the economy and therefore their revival is critical to our economic survival. They said that it is necessary for the government to increase its efforts for revival of the State Owned Enterprises. They said that greater autonomy and non-interference in their functioning have to be guaranteed so that the country can fully reap full the benefits of State Owned Enterprises. They said that State Owned Enterprises are not only industries for short-term economic and commercial gains but are our national assets.
LCCI President particularly mentioned Pakistan Steel Mills saying that this organization was not only a major source of steel products supply to the various domestic industries but was also had vital importance for defence industry. He said that due to closure of Pakistan Steel Mills, domestic industry is relying on import of raw materials and huge foreign exchange is being spent for this purpose. He said that revival of Pakistan Steel Mills should be top priority of the government.
The LCCI office-bearers urged the government to take immediate measures for restructuring of loss-making State Owned Enterprises.
Kashif Anwar said that said that national flag carrier Pakistan International Airline is in dire need of new blood and additional aircraft that could be possible with special efforts of the government. He said that cut in political interference, training of staff members and cost cutting measures could control the losses of the airline and streamlining of flight operations will lead to sustainable revenues to the PIA.
The LCCI President also called for a salvage plan for a Pakistan Railways saying that Indian Railways is earning billions of dollars for the economy while situation in Pakistan is otherwise.
