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Hawke impressed

by privatisation, confirms

Australia interest

ISLAMABAD: The former Australian Prime Minister Bob Hawke, currently visiting Pakistan while appreciating the privatisation process termed it" great " and said it has enhanced the role of private sector in the economy by attracting foreign investors through lucrative incentives.

He expressed these views after attending a detailed briefing on the privatization process and national highways which was also attended by Mr. Asif Ali Zardari, Chairperson, Pakistan Environment Protection Council.

Mrs. Bob Hawke, Shahid Hassan Khan, Special Assistant to the Prime minister, Syed Naveed Qamar, Chairman Privatization Division, Waqar Masood, Additional Secretary, Prime Minister Secretariat, Hussain Lawai, President MCB, Shaukat Kazmi, President ABL, Abdullah Yousaf, Secretary Privatization and other senior officials.

The former Australian Prime minister greatly welcomed the Pakistani investors delegation led by Asif Zardari which visited Australia recently.

He said, the visit of Asif Zardari along with the Pakistani investors will help to cement the trade ties between the two countries.

Zardari, heading a 60-member trade delegation, informed Australian investors about the liberal economic policies and Pakistan's strategic location which offers unmatched investment opportunities to the foreign investors.

Agricultural , textile and mineral sectors of his country's economy is looking for Australian management skills and investment, he added.

Hawke said , he was very impressed by the presentation made here which covered all the important areas including, national highways, power sector, financial sector, ports and telecommunications.

He said " when you look at the experience around the world you come to the understanding that the government has a distinct role to play in the country's economy."

" In terms of economic development, government is to develop the right environment whereas the role of private sector is to develop the resources and potential of the country," he observed.

The Australian investors, he said, would be interested in the infrastructure development, power generation, and particularly the banking sector as, he added, " we have an excellent banking system which has been opened to the private sector."

Hawke said, the most of the areas which you have marked here are the ones in which we have a significant experience.

About the time-frame of Australian investors' response, he hoped that " it would be relatively faster than the others.

He further said that he would also talk to the businessmen, not only in Australia but in other countries as well where he had the associations with entrepreneurs, intrested in these areas.

The Chairman of Privatization Commission, Syed Naveed Qamar briefing the former Australian Prime Minister Bob Hawke said that two commercial banks and around hundred industrial units were privatized so far while the privatization of the third commercial bank was in the process.

The industrial units, he said included the wide range of areas including cement, fertilizer, vegetable oil etc. Other areas of privatization, he said, were telecommunication, gas, power and financial sector.

Referring to PTCL, he said 26 per cent strategic shares were offered for privatization in the first phase alongwith the management control.

He said that Kot Addu power project of 1600 MW was also being privatized with the guarantee that the existing power institution would purchase its electricity.

Syed Naveed Qamar further said that another 800 MW power station of Jamshoro would also be privatized.

Shahid Hassan Khan, Special Assistant to the Prime Minister at this juncture informed the visiting former Australian Prime Minister the distribution side of the power sector would also be privatized, adding that there was huge power losses including pilferage of electricity.

KESC, he said was also on the agenda of privatization which was incurring power losses upto the 30 per cent.

President, MCB, Hussain Lawai said that the bank had recorded substantial progress after privatization in all respects including deposits, profit, recovery, credit, incentives to the employees and value of assets. The bank, he said introduced most modern financial services for the clients which attracted deposits for the institution.

President, ABL, Shaukat Kazmi said that Allied Bank also showed rapid progress after privatization and grew fast in terms of deposits, profit and latest services to the clients. The former Australian premier was also briefed about the road network and " National Highways" in the country . He was informed that the road network in the country was approximated at 190,000 kilometers, consisting of 97,000 of paved roads and 93,000 kms of gravel roads.

Bob Hawke was given a detailed briefing about the eight highways of Pakistan totaling 6587 kms that mostly serve inter- provincial traffic, including important cities and major freight terminals.

The national highways also provide links to Central Asian countries and have bright prospects for development as transit trade routes.

The government, he was informed, now tends to construct its road and bridges on Build Operate and Transfer (BOT) basis and private sector is being invited to participate.

A number of projects have been identified, and private sector may select one or more projects for construction on BOT basis, he was told.-APP