Islamabad, May 16 – Privatisation is the key to generate investment and improve competitiveness, this was stated by Arthur Bayhan, Chief Executive Officer of the Competitiveness Support Fund. The Competitiveness Support Fund made a special presentation to the Privatisation Commission here today on the Global Competitiveness Indicators impacting the privatization process in Pakistan.

The meeting was chaired by Mr. Arif Mansur, Secretary Privatisation Commission (PC). Mr. Mansur informed the CSF delegation that the privatization process has been very successful, especially in the banking, capital markets, automotive, cement, chemical and engineering, and the fertilizer sectors. He also informed the delegation that PC will be completing some major transactions by the close of this financial year.

Arthur Bayhan, Chief Executive Officer of the Competitiveness Support Fund, in his presentation briefed the senior management of the Privatisation Commission on the indicators affecting the privatization process and competitiveness of the country. Mr. Bayhan said, “The Ministry of Parivatisation has a key role to play in improving Pakistan’s Global Competitiveness Ranking. While protecting the rights of existing workers, the Government needs to continue to be attentive to the possibilities of improving efficiency by passing non-strategic state-owned enterprises to the private sector. The recent successful results in the financial sector are in large part thanks to the continuation of government’s policies. This will improve Pakistan’s scores in terms of a variety of efforts related to the “business sophistication” and “market efficiency”.

The State of Pakistan’s Competitiveness Report of the CSF and the Global Competitiveness Report (GCR) of the World Economic Forum (WEF) identified poor quality of information regarding changes in policies and regulation and the efficacy of private boards as the most problematic factors in doing business in Pakistan. The GCR indicated and re-emphasized in the State of Pakistan’s Competitiveness Report that Pakistan has made improvements in the diversion of public funds, wastefulness of government spending, efficacy of legal framework and intensity of local competition indicators.

The presentation also highlighted the competitiveness aspects of the privatization issues in Pakistan with respect to the Global Competitiveness Report (GCR) of the World Economic Forum.

Mr. Arif Mansur told the CSF delegation that the Privatisation Commission would like to work closely with the CSF on improving Pakistan’s ranking on the Global Competitiveness Index of the World Economic Forum. Mr. Mansur also asked CSF to assist the Privatisation Commission on various transactions related to data to be provided to the international sources. Mr. Mansur also proposed CSF to create a formal partnership to highlight the importance of the privatization of knowledge-driven economic development.

Mr. Bayhan emphasized the importance of the foreign direct investment coming into Pakistan. He informed the meeting that the investment coming into Pakistan should support the sectors contributing to the knowledge-based economy, as it is crucial for sustainable economic growth. He further informed the meeting that CSF is working very closely with its partner institutions such as the Pakistan Business Council and the FPCCI to increase private sectors’ focus on professionalism and corporate governance. “Pakistan should also make efforts to be more visible at the international arena, as it is critical for a successful privatization process” said Bayhan.

On the future joint initiatives for CSF and the Privatisation Commission (PC) to work together, Mr. Arif Mansur asked the CSF to assist PC in establishing linkages with international institutions for the availability of Pakistan’s up-dated data to the international sources. He further asked the CSF to assist the PC in providing technical assistance to add value to the privatization process.

The Prime Minister, Shaukat Aziz launched the State of Pakistan Competitiveness Report in March this year. The Prime Minister asked the CSF to bring all line- ministries and relevant institutions on board to improve Pakistan’s ranking on the Global Competitiveness Report of the World Economic Forum. CSF’s presentation to the Privatization Commission was to discuss the identified sectors where Pakistan is lacking behind and how Pakistan can improve its competitiveness. CSF has already briefed most of the ministries and meetings with the other ministries and relevant institutions will follow.

Pakistan showed solid improvement from last year’s 94th place to 91st place this year on the Global Competitiveness Index (GCI). The GCI ranked 125 countries in this year’s survey over 117 in the prior year. Pakistan’s gain takes on added significance when compared to the drop in rankings experienced by many noteworthy emerging markets. In comparison to the other economies, GCI rankings dropped by 9 for Russia and Brazil, by 6 for China, by 2 for Thailand and by 1 for Malaysia. With its rise of two places over last year, regional competitor India failed to keep pace with Pakistan’s improvements. CSF is working closely with the World Economic Forum, as its country partner institution, on the ranking of Pakistan as well as on identifying the areas to be improved and the methodologies that will bring about that improvement.

The CSF delegation comprised of Arthur Bayhan, CEO of the Competitiveness Support Fund and Abdul Basit, Joint Secretary, of the Prime Minister’s Special Programme Wing, Ministry of Finance.

Competitiveness Support Fund (CSF) is a joint initiative of the Ministry of Finance, Government of Pakistan and the United States Agency for International Development (USAID). CSF Supports Pakistan’s goal to be of a more competitiveness economy by providing input into policy decisions, working to improve regulatory and administrative frameworks and enhancing public-private partnerships within the country. CSF also provides technical assistance and co-financing for initiatives related to entrepreneurship, business incubators and private-sector-led initiatives with research institutes and universities that contribute to creating a knowledge-driven economy.

Support for CSF is part of the $1.5 billion in aid that the U.S. Government is providing to Pakistan over five years to improve economic growth, education, health, and governance.

Click here to download CSF Presentation to Privatization commission

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