Privatization About the Basic Civic Utilities

If we observe the overall scenario of the world and historical experience about the basic civic utilities, that are under the control of Government. Therefore, privatization of Water & Power, education, health etc is not good for the whole society and government. Being a team member of Privatization Commission, Government of Pakistan, I want to share some experience. Government of Pakistan privatized the electricity company of a city (Karachi) in 2005. After the privatization, the new owner did not fulfill the demand of peoples that city, turn into electricity crisis. If government is not willing to control the water supply service. Then option is Government can give the water supply services Management Contract (MC) under the Public Private Partnership (PPP) for few years. Service charge rate, quality of service and employees related issues monitored by the government. If the Management Contractor performs well then government should extend it. If contractor performs poor then government should think about other option. If Government finally decided for privatization. Government should take following steps in the privatization process and post privatization. Government should set a service charge that must be fixed by the new owner. Government should give some exemption in basic infrastructure instead of subsidies. In SPA (Sale Purchase Agreement) all terms and conditions must clarify about the future. Government should monitor the services, quality, rate and facilities of new owner and observe the demand of people. There are two options for the worker, first is, government offered the Golden Handshake Scheme (GHS) on basis of services length and worker can opt scheme. Second option is, the employees, who did not opt the GHS, Government should provide job protection for few years.