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Privatise profit-making units alongside sick SOEs: WB
A World Bank officials yes terday advocated the privatisation of profit-making industries. alongside loss-incurring state-owned enterprises (SOEs). to make them more profitable, reports UNB.
"Enterprises like Biman. which is not a loss-making unit, can be made highly efficient and profitable, if it is run by skilled private sector people,"' said the Bank's resident mission chief in Bangladesh, Pierre Landell-Mllls.
Newly appointed Chairman of the Privatisation Board Kazi Zafarullah described the privatisation process as a difficult task, but expressed his optimism that the government's disinvestment effort would be a success.
"It's a very difficult process. The old idea of socialism Is creating sabotage to the privatisation process, "he said at a discussion on privatisation policy, organised by Bangladesh Chamber of Industries (BCI) at Its board room.
He stressed the need for a media campaign to make the people aware of the positive aspects of privatisation.
Participating In the discussion. Landell-Mills lauded the government's move towards disinvestment, saying it is an internationally recognised idea to privatise the industries making misuse of tax payer's money by Incurring huge losses.
He said if the private sector people can set an example of running sick industries efficiently and profitably, more and more private sector investors would be attracted, even the flow of foreign direct Investment (FDI) would be increased.
Strongly opposing the idea of rehabilitating the lossmaking SOEs, the World Bank representative laid emphasis on a genera] law for private operation. a basic framework, policy statement and specific modalities for privatisation.
He advised members of the business community to establish more credibility, honesty, integrity in discharging their duties efficiently to support the government steps towards selling out loss-incurring SOEs.
The chairman of the privatisation board said the present government, which so far did
not dislnvest any of the loss-maklng SOEs, would privatise 8 to 10 enterprises within the next few weeks.
He also supported the idea of privatising profit-making enterprises. "The private sector should have the chance to prove how efficiently they can run an organisation, how better and profitable they can make an
The government has brought Biman or such enterprises, and water and power sector under its purview of privatisation, but everything would be implemented in phases, he said
’’We are moving forward slowly.’’ said Zafarullah. who Joined the privatisation board as its chairman three weeks ago with the status of a state minister.
He said the past government had successfully privatised 64 SOEs and the present government floated open tender to sell out 12 Industries. The process of tender is being simplified, he said.
Terming the huge burden of loss-Incurring SOEs a "cancer" to the society, he said those
were making an yearly loss of Tk 2500 crore, that could be utilised in meeting the urgent needs of the people and the society.
Zafarullah. also a leading businessman, called upon his colleagues to reestablish their credibility. "Businessmen should not only be termed as defaulters, they are generating employment and creating conditions for development.”
He also urged the businessmen to invest in the SOEs, some of which are "gold mines" hav-ing bright prospect of becoming feasible. "Come, invest and buy these enterprises and make those profitable."
BCI President Sharif M Afzal Hossain suggested that a consultative committee be formed for the privatisation board with representatives from concerned ministries, MPs, labour unions and private sector
He proposed a 5-year mora torium on CBA activities and labour politics to ensure congenial atmosphere in the indus-I ^^TheirMirages should be de-I termined a" per I and their Interest mm I tectedbylLOrale. heloldlhe meeting attended by BCI direc 1 tors and members.