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Govt urged not to hand over public utilities to foreigners

RECORDER REPORT

LAHORE: Electric Power Forum (EPF) has demanded of the Chief Executive not to allow handing over the national public welfare utilities, such as Wapda, Sui Gas, and PTCL to foreign entrepreneurs in the public interest.

In a press conference, chairman of EPF, Justice Nasim Hassan Shah (Retd), urged the government to raise productivity and efficiency of the public utilities for provision of cheaper electricity, telecommunication, gas and other services through inducting professional managements. The press conference was jointly addressed by Lt. Gen. Ghulam Safdar Butt (Retd), former Chairman of Wapda, Masood Hasan, former secretary defence production, and Khurshid Ahmad, general secretary of All Pakistan Federation of Trade Unions.

Justice Shah said that the proposed privatisation through Pepco would be against the letter and spirit of the Constitution of Pakistan. Distribution of electricity must be handed over to the provincial governments, which have the executive right to distribute power under Article 157 of the Constitution.

The proposed privatisation of Faisalabad Disco will be a tragic development for Wpada and Punjab, he added.

He maintained that the thermal IPPs, including Hubco, have almost drained two-third revenue of Wapda, while supplying only one-third of its electric energy. Hubco has proved to be a predator and threatens to swallow Wapda as it has already taken Kapco. The creation of Pepco was also done at the behest of foreign investors, he maintained.

Similarly, the handing over of the Pakistan Railways to foreign buyers will further add to the liabilities in foreign exchange since the profits and dividends are likely to be repatriated abroad, while the country has no resources to pay its foreign debts, Justice Shah said.

The other speakers urged the government not to allow the break up of Wapda Power Wing into 13 companies, which would result in raising its overheads and increasing inefficiency. The Indian government does not allow any individual foreign investor to purchase shares in its companies and utilities. Only group funds can take upto 10 percent shares while the total foreign share holding cannot exceed 30 percent of the company stock, they added.

They asserted that the government must not accede to the unfair demand of Hubco for imposing its "one-sided and fraudulent power agreements" and amendments upon Wapda, which would seriously affect the tariff of Wapda and impose an unsustainable burden on the economy.