Privatization of public industries imperative
Tuesday, 17 June 2008

Under present financial logjams, rapid privatization of public industries has become imperative. The Finance Adviserhas stressed this need at a seminar recently. He was right when he said he did not believe that a government-run industry could work efficiently. He blamed mismanagement as the main problem for a state-owned enterprise. Mismanagement and subsequent losses are the main features of government industries. The government is pouring money to these for nothing. It has been seen in several cases that enterprises become fully operative and profitable after privatization. In such cases the does not require to bear the burden of salaries and other necessities of those concern. Instead, the government gets taxes from those industries. They substantially add to the national economy. Efforts to make the management of government enterprises efficient have always failed. The officials and employees of those industries are sure that be it loss or profit, the government will pay their dues. For example in govt. owned sugar industries, despite various safeguard measures taken in the national budget, they have failed to make any profit. But the owners of the private industries know that they will have to make profit for their own interest. So they take effective steps to make the unit fully operative and also to sell the products in a profitable way. Thus they add to the GDP of the country. We therefore urge the government not to take any time in privatizing the loss making state owned industries. They should immediately be transferred to private management in the national interest. The private management will surely run them in a profitable way and help boost national economy.

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