Moreover, I also agree with the suggestions of Dr. The government should pay in instalments, just as Etisalat has done. PTCL can quickly generate whatever this will cost. Hughes, Kamal A. Privatization of PTCL. Muhammad Yasir Arslan Author.
PDF version for only 0. Add to cart. Sign in to write a comment. Read the ebook. Creative Accounting, the Enron Case a Adoption of Cost and Management Accou Topics: Privatisation ; Corruption ; Government control ; Inefficiency. You must be logged in to access preview copies. Write a review No reviews for this item. Login to add to your basket.
View our pricing guide or login to see prices. About Settings Related Abstract This case is intended to provide an insight into the privatisation of Pakistan Telecommunication Company Limited PTCL which was part of a larger government policy for the generation of foreign exchange reserves, controlling the corruption element, and creating efficiency through privatisation of public entities to foreign investors.
The privatisation process of PTCL started in and finally ended in with the sale of 26 percent of the shares to Etisalat of the United Arab Emirates guaranteeing its management control. The privatisation took place amid controversies of corruption by the government and opposition from the masses against the sale of a national strategic asset.
The winning bidder was given concessions in the form of time relaxation in the payment of bid money, as well as a revision of the bid price. Moreover, these arrangements were kept secret from the public in the larger national interest. This case covers issues related to: 1 the procedure of privatisation; 2 the sale of a national crucial asset; 3 breach of contract by Etisalat and secret re-agreements between the concerned parties; 4 the reservation of employees towards the change and their re-employment; and 5 the efficiency of PTCL before and after privatisation.
Corruption in the Name of Privatization. Incompetent SEVP's , no focus on customer, very pathetic customer service. Farooq Siddiqui. Please provide list of the disputed properties and their value. Who signed the papers for transfer of the non-existent properties? If they are alive, they should be called and questioned and penalized for this gross oversight which has caused the country dearly.
Ash Man. Very interesting. Abba leo. No body listened to Faisal Raza Abidi, he keeps pointing on irregularities in deal. Jan 03, am. In a land of ghost schools and ghost rest-houses, is it any surprise.
Now the government will go to court to secure payment for non-existent properties. No judgetest why should it be no. Chief Justice didn't listen to ex-senator Faisal Raza Abidi. While cost of every other commodity in Pakistan is rising at an exponential pace, here is a service where price is constantly declining enabling the poor masses to communicate.
What good is an enterprise, public or private, where consumers are fleeced for profits? I think the author has disregarded the fact that since , Pakistani telecom market has grown far more competitive.
Fixed line operators have a hard time competing with wireless where there is little maintenance cost. If PTCL was under government control it would have met the same fate which befell other state owned enterprises. In a society where nepotism is rife it would have been only a matter of time before cronies and blue eyed boys of the ruling regime called the shots at PTCL.
GoP should concentrate on getting these white elephants privatized rather than debating earlier privatization decisions. Kamal has written an excellent article about PTCL however one thing that I Believed was missing was a true comparison PIA was an even better example, but not to be political at all we have seen that whenever a democratic govt takes over it rewards its workers by getting them hired in govt institutions, PIA, PTCL Pakistan Steel has been lucky in this regard due to its location to some extent to name the few.
I believe if someone can evaluate the performance within the country between other institutions that would provide a fair comparison. The UAE doesn't care about any "brotherly relationship" with Pakistan They do give charity to Pakistan but we wouldn't need it if they dealt fairly with us in such transactions.
FDI and the selling of national assets to foreigners is a criminally insane policy to begin with. I have worked in the industry for over 11 years and I can't disagree more with author's analysis. I am surprised that such a biased and factually incorrect analysis was posted to drive home the point that SOEs are better run. Some of the comments have accurately pointed out that the article is superficial in analysis and the author has cherry picked the facts.
The fact that PTCL was holding back the broadband industry before , the tax holiday, the collapse of IDD rates and the introduction of mobile phone companies would have had PTCL on its knees if it were still state run. Nice work done along with all the relevant facts and figures No doubt before privatization PTCL was one of the largest Revenue generator of the country and leading telecom industry in the region H Chaudhry: Free market!!!
I think you have not heard of the pehnomenon known as the Global Financial Crisis of Or maybe you're just related to shortcut aziz. Although the facts given in your article are correct, however, you are forgetting the main point.
Subscribers were paying hefty charges for local and long distance calls. Few years before privatisation, even mobile operators were forced to use PTCL's network and pay them. PTCL was only good because of endless protections given to it by the regulators.
We all know the state of affirs before privatisation, where we had to bribe the lineman for keeping our line in working condition This article is a very good example that if numbers are presented in a different way, it can create an entirely opposite picture.
Rather superficial analysis. Doesnt account for the tax holiday that PTCL enjoyed prior to its privatization or the collapse in international dialling tariffs across the world which have hurt all fixed line operators or the fact that PTCL was one of the least efficient telecom operators in the world based on various measures including employees per line.
Yes, more was expected from the new owners but that doesnt mean that this was some sort of gem. Author didn't mention the effect of the emergence of new players. Before privitization, PTCL had monomply in the market and was charging very high tarrfis. PTCL's services for the customers have improved considerably.
Ufone is owned by PTCL, which is also doing well. Many of fixed line customers have moved to Vfone or other WLL or mobile companies, so the decrease in revenues and profit margins is understandable. Crap article Not a good assessment. I guess the author has been "living abroad" and had no idea of the on ground realities. Or maybe the writer never really used a PTCL phone line.
Lets be honest , even after privatization the company is barely walking. The problem is not the technical expertise it is the plain and simple fact that you cannot FIRE anyone form a state owned institution, if you do you head the KESC way , strikes and all. Unfortunately Mr. Also the reputation of the Arab Baduins is quite notorious as they carried out the human resource HR insults in a very brave and vehement way.
No investment was flown in as the result of the PTCL privitization to national exchequer and themoney of this poor nation is going into the baks of UAE where our mean and malicious leaerds, politicians, army general are having nice day and nights of thier livies.
We would have been with out internet and phone for ever. We the Pakistanies are hypocrates and love the non-system in which we live. We dont deserve good, intelligent people. Chaudhry On the one hand, you are praising the free market and, on the other hand, you are asking for regulation of the market which is always opposed by proponents of that system.
When you regulate a market then it's not free. Free market is nothing but destruction. The author has mentioned the names of companies upfront that are being run by Government and are performing very well. Then how government running businesses is destruction? Good piece but I suppose it lacked the depth of analysis. Adding to a comment above by TsunamiLota, i would say that such decisions are based on cost and benefit analysis. And I believe that in terms of cost-benefit analysis, this has been a best of the decisions.
Just look at the cellular boom and the employment it has generated. It would not have been possible with a big giant in the market already having the large chunk of market share. For comparison, just look at the oil sector, with a huge public corporation, PSO, in the market, good investors are not interested in putting in value in the oil and gas sector.
PTCL was sold at the right time, since there profits would have descreased with time, and the main reason is the change in the communication industry.
0コメント