Selling geese that lay the golden eggs

[SipahSalar]

Selling geese that lay the golden eggs - Newspaper - DAWN.COM

I will save you the trouble of reading the whole article about why GoP selling it's stake in HBL is a bad idea.
The article raises 2 major points:

1. When the govt. announced its privatization plan, there was no mention of selling hugely profitable assets. They were going to focus on assets that were resulting in a loss.
2. GoP earns a lot of money through it's share in HBL and why is it giving up an important source of revenue?

Here is what one Former Finance Minister has to say:
"So does it make sense to sell the geese that lay the golden eggs? “Absolutely not,” asserts former finance minister Dr Hafiz A. Pasha. Now a professor emeritus at the Lahore School of Economics, Dr Pasha told this writer that he was at a loss to understand the current privatisation process. He recalled that the PML-N government had mentioned in its election manifesto that the focus would be on restructuring and selling off loss-making state-owned enterprises. “There was no mention of selling profitable assets.”

He conceded that selling companies that earn huge revenues would deprive the country of income in the form of handsome dividends and capital gains."

 

[Dubious]

Selling geese that lay the golden eggs - Newspaper - DAWN.COM

I will save you the trouble of reading the whole article about why GoP selling it's stake in
The article raises 2 major points:

1. When the govt. announced its privatization plan, there was no mention of selling hugely profitable assets. They were going to focus on assets that were resulting in a loss.
2. GoP earns a lot of money through it's share in HBL and why is it giving up an important source of revenue?

Here is what one Former Finance Minister has to say:
"So does it make sense to sell the geese that lay the golden eggs? “Absolutely not,” asserts former finance minister Dr Hafiz A. Pasha. Now a professor emeritus at the Lahore School of Economics, Dr Pasha told this writer that he was at a loss to understand the current privatisation process. He recalled that the PML-N government had mentioned in its election manifesto that the focus would be on restructuring and selling off loss-making state-owned enterprises. “There was no mention of selling profitable assets.”

He conceded that selling companies that earn huge revenues would deprive the country of income in the form of handsome dividends and capital gains."

Quick money is the way...grab as much as you can in your limited time period...Kal kisnay dekha attitude!!

While things which are resulting in a loss are tagged along and supported or gifted to own relatives and still supported and revived! Genius plans to ensure a thriving future with everlasting money!

 

[SipahSalar]

Quick money is the way...grab as much as you can in your limited time period...Kal kisnay dekha attitude!!

While things which are resulting in a loss are tagged along and supported or gifted to own relatives and still supported and revived! Genius plans to ensure a thriving future with everlasting money!

Yupp. I think the N-league wants to fool people by making easy money instead of a sturdy economic policy.

 

[livingdead]

its better to sell her for huge profit when she is still laying eggs..

 

[MarkovChain]

Privatization isn't necessarily a bad thing but it all depends on how the money generated is being used. If it's squandered on making up for the cost of freebies or sub-standard social welfare schemes, that's a concern.

 

[Faiez]

Selling geese that lay the golden eggs - Newspaper - DAWN.COM

I will save you the trouble of reading the whole article about why GoP selling it's stake in
The article raises 2 major points:

1. When the govt. announced its privatization plan, there was no mention of selling hugely profitable assets. They were going to focus on assets that were resulting in a loss.
2. GoP earns a lot of money through it's share in HBL and why is it giving up an important source of revenue?

Here is what one Former Finance Minister has to say:
"So does it make sense to sell the geese that lay the golden eggs? “Absolutely not,” asserts former finance minister Dr Hafiz A. Pasha. Now a professor emeritus at the Lahore School of Economics, Dr Pasha told this writer that he was at a loss to understand the current privatisation process. He recalled that the PML-N government had mentioned in its election manifesto that the focus would be on restructuring and selling off loss-making state-owned enterprises. “There was no mention of selling profitable assets.”

He conceded that selling companies that earn huge revenues would deprive the country of income in the form of handsome dividends and capital gains."

There's no hidden agenda....Everyone knows the truth, it's an open secret...The biggest loss making assets are PIA, steel mill and railway...

All three of these and more are used by governments to over hire their political supporters. That's their way of paying party workers (they don't even pay them proper salaries, even that comes from taxpayer expense). And that's the truth.

their stake in HBL didn't allow them to hire their own party workers into HBL without merit, so they sold it.

 

[SipahSalar]

All three of these and more are used by governments to over hire their political supporters. That's their way of paying party workers (they don't even pay them proper salaries, even that comes from taxpayer expense). And that's the truth.

Unfortunately that's true. Especially for PPP and MQM. PPP brought people who were clerks to the position of MD based entirely on their ethnicity.

 

[WishLivePak]

its better to sell her for huge profit when she is still laying eggs..

yeah

Many people fix their house, fix their car etc before they sell it, so it fetches more money. If you sell car or house that requires a lot of work of fixing and is costing money if not being fixed, then it will fetch far less money.

Sadly posters you will see here not realize any of it. If Imran sold Pakistan for free tomorrow, everyone will praise him. But if Nawaz sells something for good money, OMG CORRUPT NAWAZ RAW AGENT USA/SAUDI PUPPET

Selling these companies will boost our reserves and make economy look more stable. Also less chance of political parties employing relatives in these companies, as was done under PPP.

 

[livingdead]

yeah

Many people fix their house, fix their car etc before they sell it, so it fetches more money. If you sell car or house that requires a lot of work of fixing and is costing money if not being fixed, then it will fetch far less money.

Sadly posters you will see here not realize any of it. If Imran sold Pakistan for free tomorrow, everyone will praise him. But if Nawaz sells something for good money, OMG CORRUPT NAWAZ RAW AGENT USA/SAUDI PUPPET

Selling these companies will boost our reserves and make economy look more stable. Also less chance of political parties employing relatives in these companies, as was done under PPP.

the core business of govt is to run effective governance...act as facilitator.. the core areas being education, healthcare.. defence etc. Everything else need to be outsourced or private industries need to be encouraged.
when no private company is willing to provide service(say banking), govt can enter the market, with clear goal to leave, once private enterprenure enter the market.

If private companies do not serve a specific community(say banks dont entertain poor people, telecom companies dont go to areas of low revenue and high cost), govt can cross subsidise it for greater common good.

This is how you exploit true potential of humans, use human greed in right way.

 

[WishLivePak]

the core business of govt is to run effective governance...act as facilitator.. the core areas being education, healthcare.. defence etc. Everything else need to be outsourced or private industries need to be encouraged.
when no private company is willing to provide service(say banking), govt can enter the market, with clear goal to leave, once private enterprenure enter the market.

If private companies do not serve a specific community(say banks dont entertain poor people, telecom companies dont go to areas of low revenue and high cost), govt can cross subsidise it for greater common good.

This is how you exploit true potential of humans, use human greed in right way.

Look up pure public goods. Sometime govt has to run some stuff that are not attractive for private firms.

Govt also provides some club goods and forgot there is another type as well.

 

[Cheetah786]

Golden goose will fetch higher profits Sell,sell,sell. A Government's job is to run the country not a Corporation.

 

[Joe Katzman]

Sadly, Akheilos and Faiez together have it about right. Create a short-term political cash-in that you can funnel to your supporters, while boasting in the press, and collecting your personal percentage for the sale.

There may be a longer-term rationale, and I'd be interested in seeing any such argument, The public sector is often the least efficient method. At the same time, efficiency isn't the most important question "Public Choice Economics" remains amazingly predictive and useful, no matter what country one lives in.

 

[khail007]

What could be expected from these Vulture Brothers and masters of corruption?