A massive strike and disrupted phone lines are amongst some of the tricks employees of incumbent local phone company Pakistan Telecommunication Company Ltd., or PTCL, pulled to protest against government’s decision to sell 26% of PCTL to investors. The government has of course arrested the strikers. Pakistan is one of the faster growing wireless countries, given that like its much bigger neighbor it is starting off a very small base. More
4 thoughts on “In Pakistan, Going Private Not That Easy”
Why single out pakistan ? Similar protests have been seen in India, where many of the other sectors (viz. electricity, transport, airports etc.) are yet to be privatised nationally (bombay and more recently delhi are exceptions).
It doesnt make sense to privatise everything, and for things that should be, it just takes time. Pakistan can probably do it faster than India for the same reasons China is able to do it faster (No democracy… hence less red tape… but who knows what Musharraf’s intentions are?… but thats another story)!!
not sure what you mean. i am pretty sure there are going to be protests everywhere the government control is loosened. i am glad they are privatizing. no point keeping these money sucking enterprises feeding off the tax payers. the tax payers deserve better service, and free market eventually brings down the prices. look at wireless in india. perfect example
Exactly what I wanted to say! But who knows where the money they collect from selling the 26% stake goes ?? With a dummy govt. and a dictator at the helm of affairs, I would be a little sceptical!
The mobile revolution in india is very real. But monopolies have been created, which may not be good in the long term. Also huge sums of money has exchanged hands recently (1-2 years back) when rules for the entry of a certain CDMA player were unclear. TRAI (Telecom Regulatory Auth. of India) was completely sidelined and hasty/partial decisions were made.
I’m not sure what Wireless has to do with the landline Electric Company. Selling 2^5 of the Electric Company does not mean the Company is privatized. And people are so misguided. Ownership of any company by Individual does not mean thet states Government has no more power over a Company. The Government never looses power over the affairs of a Company. It may choose not to excerciose the power. But the government can choose to excercise special power over the utiities like setting the rates the Utilities can charge. In usa every state (atleast most States) has Public Service Commission that has power over the Utilities.
In any case I’m sure the private Companies are not totally free in any Industry. So what is this strike about?