'Employees to resist PO privatisation bid'- Pakistan

[TrueBlueTerrier]

‘Employees to resist Post Office privatisation bid’

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A leader of Pakistan Post employees has announced that they would severely resist any attempt to privatize the Postal Department, “as such an action would ruin an important national service institution”.

According to a concept paper prepared for Privatization Commission, the Pakistan Post Office Department would be divided into two entities - Pakistan Post Service Company and Pakistan Post Bank Company — under the roof of one holding company named Pakistan Post Holding Company. Pakistan Post Service will manage the mail delivery services.

Initially, the government will own all the shares of Pakistan Post Holding, with the holding company owning 100 per cent of each of the two companies. This will mean that the two companies will still be initially funded by the government.

Pakistan Post Bank is expected to go public as early as fiscal year 2011 and by the year 2013 all the shares of the company will be traded in the market. Pakistan Post Service will not be listed because of its public service nature.

After the privatization of Pakistan Post Bank is completed, it will be fully obliged to pay taxes and like any other financial institution it will be subjected to the Pakistan Banking Law.

And finally, in order to diversify and expand the product range of Pakistan Post Bank Co., a merger with SME Bank Ltd can be done.

This will lead to a revenue enhancement through market share gain, higher competitiveness, lower cost of operation, improved profitability, and increased value generation for the company, said the concept paper.

In a statement, Mohammad Arshad Jawed, the group leader of National Organization of Postal Employees, i.e. the last CBA of the Postal Department, said that Pakistan Post had been subjected to financial losses in a systematic manner in order to pave way for the privatization of postal department.

[Wessex]

In a statement, Mohammad Arshad Jawed, the group leader of National Organization of Postal Employees, i.e. the last CBA of the Postal Department, said that Pakistan Post had been subjected to financial losses in a systematic manner in order to pave way for the privatization of postal department.

Hmmmm, sounds vaguely familiar