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Questions for Oral Answers and Their Replies” 1 (7th Session) NATIONAL ASSEMBLY SECRETARIAT ————— “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the National Assembly to be held on Thursday, the 5th December, 2013 (Originally Starred Question Nos. 5, 18, 34, 138, 139, 144, 147, 151 and 152 were set down for answer during the 6th Session) 5. *Mehboob Alam: Will the Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization be pleased to state: (a) the steps being taken to control the increasing rate of un- employment in the country; and (b) the procedure to be adopted to fill up the vacant posts transparently in the institutions presently functioning under the Ministry? Minister For Finance, Revenue, Economic Affairs, Statistics and Privatization (Mr. Muhammad Ishaq Dar): (a) To control the increasing rate of unemployment in the country following steps are being taken by the government. i. Pakistan’s economy has witnessed a low GDP growth ranging from 1.6 percent to 3.0 percent during last few years. Efforts are being made to enhance the GDP growth rate to a moderate level in next few years to absorb the increasing labour force. ii. Government has also increased PSDP by 50 percent which will enhance economic activities and employment opportunities in public & private sector. iii. Energy Policy has been announced and identifying priority steps for the short-term solution and to ensure smooth and economical supply 2 of power over the long run which will also create employment opportunities through forward & backward linkages. iv. The government has successfully cleared the circular debt of Rs.480 billion. On account of better energy supply to the industries its impact has been realized in growth performance of LSM sector which will supplement in generating employment opportunities. v. New industrial estates will be established throughout Pakistan to provide the entire required infrastructure for industries in collaboration with the provincial government which will absorb the growing unemployed labour force. vi. Recent IMF Extended Fund Facility will provide macroeconomic stability, strengthen the reserve and Balance of Payment position and open the window for multilateral, bilateral foreign funding for our mega development projects. This will boost economic activity in the country, which will have a multiplier effect on employment opportunities. vii. It is worth mentioning that recent agreement between China and Pakistan has helped in restoring the investment climate which is evident from the fact that FDI increased by 85.0 percent during July-September, FY14 over last year. viii. Similarly Prime Minister’s recent visit to Turkey also aims at building trade and investment ties through promoting conducive business environment in the country. ix. Moreover, USA interest to bring investment to around $ 300 million will further supplement the investment climate and generate new employment opportunities. x. To create self employment and skill development, Federal Government has launched following schemes: (a) Prime Minister’s Micro Finance loan Scheme: Total Rs.3.5 billion are earmarked for the scheme which would benefit about 250,000 people. 3 (b) Prime Minister’s Small Business Loan Scheme: Under this scheme, loans ranging from Rs.100, 000 to Rs.2,000,000 will be available at a mark-up cost of 8 percent and the remaining markup would be borne by the government. (c) Prime Minister’s Youth Training Program: One-year training program has been designed for graduates and Rs.10000 amount will be given as a stipend. (d) Prime Minister’s Youth Skills Development Program: Under this program 25,-000 young persons up to the age of 25 with minimum qualification of middle will be trained and a Rs.5000 will be paid as a stipend. NAVTTC will manage the programme in collaboration with TEVTA authorities. (e) Overseas employment: Government of Pakistan is making sincere efforts to boost overseas employment. (b) (i) Posts in BS-16 and above are filled through Federal Public Service Commission on Provincial/Regional quota basis. (ii) Technical posts, such consultants, MP scale etc (out of purview of FPSC) are advertised in the press and filled on recommendation of Section Boards/Committees constituted for this purposes. (iii) Posts in BS 01-02 are advertised in the press and filled on recommendations of Departmental Section Committee ordinarily on local basis. (iv) Posts in BS 03-15 are advertised in the press and filled on recommendations of Departmental Selection Committee on Provincial/ Regional quota basis. 18. *Rai Hasan Nawaz Khan: Will the Minister for Finance Revenue Economic Affairs and Statistics and Privatization be pleased to state: (a) whether a comprehensive mechanism is available with the Ministry for the Privatization of Government entities/units; 4 (b) whether the Government entities particularly KESC and PTCL have been privatized without such mechanism; and (c) whether the targets set for the privatization of KESC and PTCL have been achieved; if not, the steps being taken in this regard? Minister For Finance, Revenue, Economic Affairs, Statistics and Privatization( Mr. Muhammad Ishaq Dar): . (a) The privatisation of entities is carried out under a set and approved procedure. (b) No. KESC and PTCL were privatised under an approved policy and procedure given in PC Ordinance, 2000 and its rules. (c) PTCL: As per Clause (3) of the Share Holders Agreement signed between the GoP and Etisalat dated 12th April 2006, the following objectives were fixed; a. To comply with the terms of the License and the laws of Pakistan; and b. To enhance the profitability and thereby the value Of the Company for its shareholders. At the time of privatization in 2005, PTCL posted revenues of 84 billion rupees against the gross sectoral revenue of 144 billion (58%). The same declined to revenues of 57 billion against the gross sectoral revenue of 355 billion (16%) in 2010. The decline in profitablity and market share is a direct consequence of the libralisation of the telecom sector, 05 Mobile, 14 LDI & 84 WLL licenses were issued since 2004 bringing in FDI worth US$ 6.3 billion. Furthermore, the massive reduction in the consumer calling rates mainly due to competition in parallel with the privatisation of the PTCL especially in the mobile sector has been a major cause. However, despite the economic challenges faced by Pakistan, PTCL has remained the market tender throughout in emerging segments of Broad band Wire-line as well as Wireless, and other companies services. KESC: Broad Targets for privatisation of KESC were: 5 (a) Reduction in Transmission & Distribution losses (including theft of electricity), which reached all-time high of 46% in year 2000; (b) Prevent frequent load-shedding and power breakdowns in the commercial hub of the country; (c) Timely and adequate investments on system (Generation, Transmission and Distribution) for improvement and rehabilitation combined with deteriorating performance efficiency; and (d) To avoid the operational / financial losses of KESC which deprived the company of the funds to finance capital expenditure for system development to meet growing demand of Karachi. During 2002 and 2003, incentives were introduced in preparation for KESC’s privatisation, which were eventually finalized on 29 November 2005 with a 73% transfer of ownership to a consortium of buyers. The consortium was unable to improve the Company’s financial and operational performance. In 2008, the majority shareholders approached Abraaj Capital, a leading private equity firm based in Dubai with a proposal for a potential stake in KESC. The deal was eventually finalized at a ticket price of $361 million for a significant equity stake in the Company. Although, special incentives were given to Abraj Capital through Amended Agreement signed between GOP through MoW&P and KESC on April 13, 2009 it took a while to turn the Company from loss making entity to profit making. During the last few years, KESC has been successful in arranging substantial funds for its development project from IFC, ADB and many local financial institutions. That coupled with the capital injection has enabled KESC to add over 1000 megawatts of new and efficient generation capacity and significantly enhance its transmission and distribution capacities. Thus, KESC declare2012 as the “Year of Turnaround”. 34. *Nafeesa Inayatullah Khan Khattak: Will the Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization be pleased to state whether there is any proposal under consideration of the Government to provide interest free loan to the Tea/Mushroom growers in the country; if so, when it will be implemented alongwith the details thereof? 6 Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization (Mr. Muhammad Ishaq Dar): No such proposal is under consideration of the Government. 138. *Dr. Azra Fazal Pechuho: Will the Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization be pleased to state: (a) whether there is any proposal under consideration of the Government to privatize the Pakistan Steel Mills; (b) if so, when it will be implemented? Minister for Finance, Revenue, Economic Affairs, Statistics & Privatization (Mr. Muhammad Ishaq Dar): (a) The matter of Privatisation of Pakistan Steel Mills Corporation (PSMC) under consideration, but the final decision has yet not been taken by the GoP. (b) Upon finalization of the proposals, the firm dates for implementation will be provided. 139. *Dr. Nafisa Shah: Will the Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization be pleased to state: (a) whether there is any proposal under consideration of the Government to obtain loans from Private Foreign Banks in the near future; (b) if so, when it will be implemented alongwith the details thereof? Reply not received. 144. *Belum Hasnain: Will the Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization be pleased to state the names of departments which will be privatized during the next five years alongwith the department- wise justification thereof? 7 Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization (Mr.
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