Loss-mak­ing en­ti­ties wast­ing na­tional re­sources

The Pak Banker - - COMPANIES/BOSS -

Pa­tron Islamabad Cham­ber of Small Traders Shahid Rasheed Butt on Sun­day said all dys­func­tional cor­po­ra­tions in­clud­ing Pak­istan Steel Mills and PIA should be sold im­me­di­ately. Busi­ness com­mu­nity of Pak­istan fully sup­ports sale of un­vi­able en­ti­ties in­flict­ing an­nual loss of tril­lions of ru­pees which are more than what na­tion spends on de­fence, he said.

Shahid Rasheed Butt said that gov­ern­ment should sell loss-mak­ing en­ti­ties and use the funds on con­struc­tive ac­tiv­i­ties as well as so­cial wel­fare which is nec­es­sary for the na­tional devel­op­ment.

He said that rea­son be­hind losses in PSM are said to be overem­ploy­ment and un­abated cor­rup­tion while Rs300 bil­lion losses in PIA is not ex­cess num­ber of em­ploy­ees but short­age of aero­planes.

PIA con­tin­ued to ground older air- craft as per the pro­ce­dures but could not bought of got new planes on lease due to lack of funds which in­creased the num­ber of em­ploy­ees per plane, he added.

He said that the man­age­ment sold prof­itable routes to raise funds which pro­vided tem­po­rary relief but it proved harm- ful in the longer run. PIA spends four­teen per­cent of rev­enue on salaries while other air­lines spend 15 to 20 per­cent on the same, he said, adding that PIA and other air­lines con­tin­ued to spend fifty per­cent on their rev­enue on fuel be­fore the fall in oil prices.

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