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This is better than a uni degree!!! Kudos and best wishes to Junaid Iqbal and team. I have a soft spot for PIA, my father was a pilot and gave 29 years service to PIA; they helped Emirates get off the ground but got left behind; privatisation is necessary.
There should be establish that Its not a government responsiblilty to giving jobs the government responsiblilty is to create environment for creating jobs and thats why they are hesitating in privatisation of govt owned companies. As always love your work.❤
This is something that should be running on National Television! But this kind of education and awareness might lead to a situation where the Agricultural sector might have to eventually cough up more than a meagre Rs 4 billion in taxes, so I can see why running this info on television might not be favored by some lol. Came here after Muzzamil Hassan's recommendation; Junaid bhai and team, thank you for dissecting, and demystifying our economic woes that have been a thorn in our side for almost half a century. I think this is the perfect combination of infographics, knowledge and time taken to convey that knowledge, than compared to hour long podcasts. It's people like you who keep my hope alive for this country. Hopefully, the newer generation can be a productive cog of change in this corrupt, rotten to the core, boomer/relic-of-the-past machinery, and change it from the inside out.
Normal privatization might be dangerous like how Adani group take over the major airports of India and create a Monopoly there. Privatization is the only solution but somehow government needs to be involved in it. As you can see after the news of planning the PIA to privatize the PSX got unexpected boom. Index hits 72k points which creates history and shows that sharks are eager to buy PIA
Given the mess that we are in,We can,t afford to go via the normal privatization route what we need is direct outright sale of shares or through long term management contracts with management control should be transferred to the private sector.
u may google most urself. these are either public account on Govt websites, and in case of PIA, Banks, K-Electric, they are public listed companies on the stock exchange.
The government should be focused on the running of it's own civilian services and leave the business part of the free market with regulation and oversight.
We should also talk about government's role in successful completion of privatization process and avoid situations like PTCL where we didn't get remaining $800 million even after 18 years
Yes, there have been a few deals which did not materialize as imagined. However, the bulk of evidence fully supports Privatization. The Government must focus on Education, Healthcare, Basic Infrastructure and ensure markets operate fairly. Everything else can be done by the private sector
Talking about NHA, it's losses are actually accrued over time in the following manner. Different governments have been carrying out development projects including motorways and national highways and the PSDP funds given to NHA have been booked as a loan to NHA. Naturally most of the projects are social projects and their investment can not be recovered through toll collection. So all the development funds given to NHA over time are unpaid loans and these are the losses. The speaker very rightly pointed out that roads are public goods and private sector may not be prepared for provision of these goods except in a very few commercially viable places.
You are right. When we speak about Steel Mill's last offer vs its recent loss, we should have shown USD value as well. Though the principal remains the same, but we can certainly build that accuracy. Thank you for your constructive feedback - J
Sir, please schedule a discussion with Dr. Taimur Rehman so that those points could also be addressed. Thanks OR please address those issues like PROFIT vs GROWTH maximization. i.e. Private vs Public output
Army/establishment owned enterprises are earning immense profit each year whereas, most of state owned 113 enterprises are making losses each year for over many decades despite having retired Army officials as MD or CEO or President or whatever the highest position is. So, how come Army / establishment owned enterprises earning profit each year while state-owned enterprises making losses?
The governance structure over the years have also become too complicated with Federal cabinet,ECC,cabinet commitees involved in every little decision with too much overlapping.We also need to streamline and decentralize these as well
Question: PIA should be privatised. At the same time, you also argue that Government should protect critical routes where demand is low. In case of PIA, such routes exist domestically as well as internationally. Privatisation means good bye to those routes and sorry to public good/right. What's your solution to that?
Good question. The concept can apply to basic roads. Air travel in far flung areas with low demand would be a luxury. The state should not provide it at all. All over the world, Oil & Gas exploration happens in remote areas where private aviation sets up landing strips for small private planes. There are other such examples.
This video is based on publicly available macroeconomic data on Pakistan. If you are interested in further reading, please see the following sources: www.finance.gov.pk/publications/Federal_Footprint_SOEs_Consolidated_Report_FY2020_22.pdf
The first and foremost duty of any government is provision of justice, security and enabling citizenry to thrive, not doing business and opening up avenues for corruption and inefficiency. Even military run businesses too needs to be halted.
The biggest problem in Pakistan is that nearly all the country's economists are neo-liberals. They firmly believe that only neo-liberal policies are beneficial for the economy, but the reality is that these very policies have led to the destruction of Pakistan's economy. It's disheartening to see how convincingly some argue that privatization is the solution, even when their own facts suggest otherwise. For instance, take the case of the National Refinery. According to their statistics, until 2005-before privatization-the organization was earning a profit of 2.1 billion rupees and employed around 913 people. This raises an important question: if the refinery was functioning well and turning a profit, why did the government decide to privatize it? Let's assume, as these neo-liberal economists often argue, that privatization was necessary. However, after privatization, the refinery earned a mere 6 billion rupees in profit over 17 years and provided employment to only 130 new people during that time. Yet, this so-called "liberal economist" still claims that neo-liberal policies generate employment. Just wow! It's time to stop glorifying neo-liberal policies. We need to move beyond this "theoretical economy" where liberal economists always win and instead focus on real economic problems. Highlight the real issues behind the downfall of institutions, and if you can't, don't call yourself an economist. In my opinion, neo-liberal economists are no different from property dealers-they simply want the government to sell institutions at cheap rates, encouraging capitalists to buy them and later reap maximum profits.
Can you please talk about National Highway losses of 832 billion? Our previous govts laud the highways as their biggest achievements. Do such huge losses happem in other countries as well?
if you recall, we spoke of public and private good. Public goods being those which the state must provide, even if they make a loss, like a road network. What the state should not do is run loss making entities in sectors which are already well served.
So the perception that NHA is a loss making entity is factually not correct. On the contrary this is an organization that has successfully delivered mega infrastructure projects like M-1,M-2, Burhan motorway, Sukkur-Multan motorway etc
I disagree. Privatisation is not the answer especially in a country like Pakistan where everything is already hell bent to screw lower segment of the society. This country lacks visionary leadership and out of the box solutions.
I tend to agree with you. Smart internal control can completely stops bleeding of financial resources and optimum level of productivity. Example are Chinese and Indonesian own SOE. Many of them are included in fortune 500 companies. Now look at our country biggest private entity K electric. What benefit K electric has given to the people? Increase load shedding in peak summer depite paying bills on time whereas in China and Indonesia, state own power utilities provides 24/7 uninterrupted power supply at a fraction of a cost.
Do Establishment (Army) owned enterprises come under state-owned enterprises? Or Army / Establishment owned enterprise is different than state owned enterprise? Example of Establishment/Army owned enterprise are many such as, Fauji fertilizer, Fauji Cement, DHA, Fauji Cornflakes, Askari Bank, etc.
ELEVATE PAY: Create a USD account for free at links.elevatepay.co/macro
About our sponsor: Elevate Pay provides freelancers and remote workers in emerging markets, including Pakistan, with FDIC-insured USD accounts through its sponsor bank, Bangor Savings Bank (Maine, USA). Elevate Pay streamlines USD payments with free, fast deposits from US and international employers, as well as platforms like Upwork, Fiverr, Deel, and Toptal. Online spending is enabled through a Mastercard debit card, and for remittances, Elevate offers market-leading FX rates. Elevate's mission is to ensure freelancers and remote workers worldwide get paid quickly and at minimal cost, maximizing their hard-earned income.
Who came here from the recommendation of Muzzamil Hassan Zaidi...
Me as well
Me too
me too from tbt
Me
Me
This is better than a uni degree!!! Kudos and best wishes to Junaid Iqbal and team. I have a soft spot for PIA, my father was a pilot and gave 29 years service to PIA; they helped Emirates get off the ground but got left behind; privatisation is necessary.
There should be establish that
Its not a government responsiblilty to giving jobs the government responsiblilty is to create environment for creating jobs and thats why they are hesitating in privatisation of govt owned companies.
As always love your work.❤
came here from muzammil's dil ki baat and my mind is blown the way you have explained an complex topic in simple way!
thank you Junaid Iqbal
Thank you :)
This is something that should be running on National Television! But this kind of education and awareness might lead to a situation where the Agricultural sector might have to eventually cough up more than a meagre Rs 4 billion in taxes, so I can see why running this info on television might not be favored by some lol.
Came here after Muzzamil Hassan's recommendation; Junaid bhai and team, thank you for dissecting, and demystifying our economic woes that have been a thorn in our side for almost half a century. I think this is the perfect combination of infographics, knowledge and time taken to convey that knowledge, than compared to hour long podcasts.
It's people like you who keep my hope alive for this country. Hopefully, the newer generation can be a productive cog of change in this corrupt, rotten to the core, boomer/relic-of-the-past machinery, and change it from the inside out.
Thank you for your kind words
Normal privatization might be dangerous like how Adani group take over the major airports of India and create a Monopoly there. Privatization is the only solution but somehow government needs to be involved in it.
As you can see after the news of planning the PIA to privatize the PSX got unexpected boom. Index hits 72k points which creates history and shows that sharks are eager to buy PIA
Thank you for your initiative to educate us. Wish more people benefit from it. Shared ti within my circle.
came here from Muzammil's DKB and loving your content. Pls keep doing 20 - 40 minutes duration. Good luck 👍🏽
Thank you! Will do!
haha it is sadqa jaria by educating Pakistanis with this kind of knowledge, kudos to you. so much easy to understand..
Keep up the good work man, waiting for the next episode
Given the mess that we are in,We can,t afford to go via the normal privatization route what we need is direct outright sale of shares or through long term management contracts with management control should be transferred to the private sector.
KWSB + KDA + Karachi Municipality should be privatised
It would be really helpful if you add the sources of your facts/figures along.overall very informative video 👍👍
u may google most urself. these are either public account on Govt websites, and in case of PIA, Banks, K-Electric, they are public listed companies on the stock exchange.
The government should be focused on the running of it's own civilian services and leave the business part of the free market with regulation and oversight.
It's very informative and productive to watch these videos as an economics major please make more videos like these
We should also talk about government's role in successful completion of privatization process and avoid situations like PTCL where we didn't get remaining $800 million even after 18 years
Yes, there have been a few deals which did not materialize as imagined. However, the bulk of evidence fully supports Privatization. The Government must focus on Education, Healthcare, Basic Infrastructure and ensure markets operate fairly. Everything else can be done by the private sector
finally good content on pakistani YT
Start watching video 1st time and liked subscribed immediately within a seconds
Talking about NHA, it's losses are actually accrued over time in the following manner. Different governments have been carrying out development projects including motorways and national highways and the PSDP funds given to NHA have been booked as a loan to NHA. Naturally most of the projects are social projects and their investment can not be recovered through toll collection. So all the development funds given to NHA over time are unpaid loans and these are the losses. The speaker very rightly pointed out that roads are public goods and private sector may not be prepared for provision of these goods except in a very few commercially viable places.
The content we needed but never deserved
The pop-up text at 4:17 should read "Employee to Aircraft Ratio".
Thanks for pointing this. We will try to fix this
top notch content
Very informative.
Great Explanation Sir.
Great job ❤
Yes, SOE's should be privatized gov should focus on more holistic approach
Please compare the figures in dollars. How can the profits in rs in 1990 be comparable to rs in 20222
Agree
You are right. When we speak about Steel Mill's last offer vs its recent loss, we should have shown USD value as well. Though the principal remains the same, but we can certainly build that accuracy. Thank you for your constructive feedback - J
Sir, please schedule a discussion with Dr. Taimur Rehman so that those points could also be addressed. Thanks
OR
please address those issues like PROFIT vs GROWTH maximization. i.e. Private vs Public output
Good idea
Yes, privatisation is must but the process should be fair and transparent
Good explanation sir
The best podcast I have seen in a long long time on this subject. You are indeed numero uno, Junaid Iqbal. Excellent work
Learnt everything from you Sir :)
Masha Allah amazing content, from content to editing, everything is just amazing
content top notch❤
Listened the whole video. IA we can make change.
superb work
Great content
Excellent
What would be the profit of these enterprises adjusting for inflation? 8:52
Absolutely yes. SOE should be privatised
Army/establishment owned enterprises are earning immense profit each year whereas, most of state owned 113 enterprises are making losses each year for over many decades despite having retired Army officials as MD or CEO or President or whatever the highest position is. So, how come Army / establishment owned enterprises earning profit each year while state-owned enterprises making losses?
The governance structure over the years have also become too complicated with Federal cabinet,ECC,cabinet commitees involved in every little decision with too much overlapping.We also need to streamline and decentralize these as well
Agreed. Video coming up soon on the size of govt
Kerna Must hai, warna future Bust hai
Question: PIA should be privatised. At the same time, you also argue that Government should protect critical routes where demand is low. In case of PIA, such routes exist domestically as well as internationally. Privatisation means good bye to those routes and sorry to public good/right. What's your solution to that?
Good question. The concept can apply to basic roads. Air travel in far flung areas with low demand would be a luxury. The state should not provide it at all. All over the world, Oil & Gas exploration happens in remote areas where private aviation sets up landing strips for small private planes. There are other such examples.
This video is based on publicly available macroeconomic data on Pakistan. If you are interested in further reading, please see the following sources:
www.finance.gov.pk/publications/Federal_Footprint_SOEs_Consolidated_Report_FY2020_22.pdf
Kindly comment pin kr diya krein
Please share graphs with 5 to 10 year gaps
The first and foremost duty of any government is provision of justice, security and enabling citizenry to thrive, not doing business and opening up avenues for corruption and inefficiency. Even military run businesses too needs to be halted.
🙌🙌
supreme court is accountable for that decision, i mean 600 arabs loss is massive
The biggest problem in Pakistan is that nearly all the country's economists are neo-liberals. They firmly believe that only neo-liberal policies are beneficial for the economy, but the reality is that these very policies have led to the destruction of Pakistan's economy.
It's disheartening to see how convincingly some argue that privatization is the solution, even when their own facts suggest otherwise. For instance, take the case of the National Refinery. According to their statistics, until 2005-before privatization-the organization was earning a profit of 2.1 billion rupees and employed around 913 people. This raises an important question: if the refinery was functioning well and turning a profit, why did the government decide to privatize it?
Let's assume, as these neo-liberal economists often argue, that privatization was necessary. However, after privatization, the refinery earned a mere 6 billion rupees in profit over 17 years and provided employment to only 130 new people during that time. Yet, this so-called "liberal economist" still claims that neo-liberal policies generate employment. Just wow!
It's time to stop glorifying neo-liberal policies. We need to move beyond this "theoretical economy" where liberal economists always win and instead focus on real economic problems. Highlight the real issues behind the downfall of institutions, and if you can't, don't call yourself an economist. In my opinion, neo-liberal economists are no different from property dealers-they simply want the government to sell institutions at cheap rates, encouraging capitalists to buy them and later reap maximum profits.
Nicely define
Me
What about NHA?
Woh tu bhai log chala rahay hain na.
Can you please talk about National Highway losses of 832 billion?
Our previous govts laud the highways as their biggest achievements.
Do such huge losses happem in other countries as well?
if you recall, we spoke of public and private good. Public goods being those which the state must provide, even if they make a loss, like a road network. What the state should not do is run loss making entities in sectors which are already well served.
Good Job Sir, I really appreciate your work
So the perception that NHA is a loss making entity is factually not correct. On the contrary this is an organization that has successfully delivered mega infrastructure projects like M-1,M-2, Burhan motorway, Sukkur-Multan motorway etc
jee hona chahiye privatize
I disagree. Privatisation is not the answer especially in a country like Pakistan where everything is already hell bent to screw lower segment of the society. This country lacks visionary leadership and out of the box solutions.
I tend to agree with you. Smart internal control can completely stops bleeding of financial resources and optimum level of productivity. Example are Chinese and Indonesian own SOE. Many of them are included in fortune 500 companies. Now look at our country biggest private entity K electric. What benefit K electric has given to the people? Increase load shedding in peak summer depite paying bills on time whereas in China and Indonesia, state own power utilities provides 24/7 uninterrupted power supply at a fraction of a cost.
Why did you leave careem?
Do Establishment (Army) owned enterprises come under state-owned enterprises? Or Army / Establishment owned enterprise is different than state owned enterprise? Example of Establishment/Army owned enterprise are many such as, Fauji fertilizer, Fauji Cement, DHA, Fauji Cornflakes, Askari Bank, etc.
No they don't. They fall under the various ex-servicemen foundations like Askari, Bahria, etc
do you have any resources to read up on the losses of Peshawar and Quetta electric?
Let me pull up the sources and share with you tomorrow
Sir ,kindly share the reference as well
CFBR
Any worldwide examples of efficient SOEs management
Saudi Aramco, etc
Remember you from Careem :)
🐐
umm why cant we talk about NHA again?
Thank you :)
Cfbr
Brother bhag naa jaana jaldi views na aane pay
That's the best comment ever. Yes, this is the repeated advice I have gotten from friends who are creators. We will stay he course IA
:)
Abc
What is your email address?