Essays on nationalization

To obtain independent assessment of the price of property being privatized, Privatization Commission depends primarily on external companies. To obtain a reference price for property, the FA carries out the assessment. In most cases, the commission contracts with an outside valuation organization or accounting firm. The techniques used for the valuation depends on the type of business and usually more than one technique is used in determining the value. The correct value is reliant on several difficult to quantify variables for example country risk, perceptions of future macroeconomic performance, and corporate psychology and strategy.

The true value can be determined only from the market. Thus it is essential to focus on designing proper transaction structures, advertising in relevant media, in choosing and applying suitable pre-qualification standards for bidders and following a suitable bidding procedure to obtain a fair price for the privatization.

EOI Expressions of Interest is invited by publicity in the related media. The PC Ordinance implies few advertising processes. Depending on the types of transactions, Expressions of Interest describes broad qualifications that prospective bidders must have. Bidders who submit an EOI and meet the requirements of broad qualifications are provided with the Request for Proposals RFP package containing the detailed pre-qualification criteria, directions to bidders, draft sales contract and other related documents.

Interested parties then submit a Statement of Qualifications SOQ , which is assessed to decide whether interested party fulfills the necessary qualifications requirements. Then Pre-qualified bidders are given a definite time period to carry out their private due diligence, after which they are invited in a pre-bid conference where their queries and concerns are addressed. This meeting is beneficial for the potential bidders to determine the bidding procedure to be followed for example, open auction, sealed bids, or some combination.

Bidding is conducted openly, where all bidders and media are invited for transparency. After the bidding and identification of uppermost bidder, the Privatization Commission Board makes a commendation to the CCOP regarding accepting or rejecting the bid. Reference amount is a key determinant in the commendation, although the PC Board recommends the sale no matter if the proposed price is below the reference amount. Once the price of bid and bidder are accepted, the PC issues a letter of acceptance or a letter of intent to the winning bidder, specifying terms and conditions of sale.

The PC then completes the sale purchase agreement, collects the sale proceeds and transfers the property. The PC issues the summary facts of the transaction in the official newsletter, within 30 days of the sale. The privatization process is long for major transactions, mainly to assure transparency. After getting CCOP approval for privatization, it usually takes about 18 months for closing a main transaction, although when no main restructuring of the organization is required. This take in about six or seven months to appoint a FA and another three or four months for the Financial Advisor to complete its technical, financial and legal due diligence and to propose a privatization strategy.

Following agreement of the plan, the bidding and marketing process takes another five or six months, while it takes another 2 months following bidding to get approvals, settle sale documents and close transactions.

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Additional delays in privatization are often caused by waiting for the necessary regulatory framework and sectoral policies to be put in place and for any needed restructuring to occur. To prepare the public sector banks for privatization, the following steps were taken in the Pakistani banking sector Hussain, :. This Act, under which the banking sector in the country was nationalized during the seventies, was amended in , to pave the way for privatization of the nationalized commercial banks. The Pakistan Banking Council, established subsequent to nationalization of the banking sector in the seventies, was abolished in In order to reduce the surplus staff in the nationalized commercial banks, voluntary separation packages were offered to employees.

The balance sheets of public sector banks were cleaned up and their accumulated losses wiped off by the injection of new equity in Habib Bank and United Bank. A total of Rs. An incentive scheme for settling long outstanding non-performing loans was designed under the guidelines of SBP to clean up the balance sheets of NCBs. The Boards of Directors were reconstituted with private sector individuals of integrity and eminence. To further strengthen the privatization process, the government promulgated the Privatization Ordinance in The Ordinance strives to ensure that privatization is carried out in a fair and transparent manner.

Purpose of this committee was to restructure loans of sick industrial units, in order to make them viable. The other important point is that fortunately, Pakistan had a very able cadre of bankers working in international banks. These persons were brought in and inducted to take over the management of the three big banks. Whether, in absence of such a readily available pool of banking professionals it would have been possible to restructure these state-owned banks can only be conjectured. Banks privatized so far: So far, 6 banks have been privatized while shares of the National Bank of Pakistan have been floated through an Initial Public Offering Table Details of the privatized units are given below:.

Muslim Commercial Bank Ltd — Fully divested and now owned and controlled by a domestic private group. Bankers Equity Ltd — 51 percent shares were sold to a domestic private Consortium but eventually the entity was forced into liquidation. An unsuccessful privatization episode. United Bank Ltd — 51 percent shares sold and management transferred to a group of private foreign investor and expatriate Pakistani. Habib Bank Ltd — 51 percent shares sold and management transferred to a private foreign group.

By March , the share of the assets of state owned banks in the banking system of Pakistan had declined to only On the other hand, private sector banks, whose share was nil back in , now own 76 percent of assets of the entire banking sector. This includes the share of foreign banks, which increased, from 7. Similarly, the share of public sector banks in total deposits and equity also declined while that of private and foreign banks rose over this period of 14 years.

These include the First Women Bank, set up to provide credit to women entrepreneurs; and two provincial banks; the Bank of Punjab and the Bank of Khyber.

How successful was Labour's programme of nationalisation? Essay Example 🥇 OzziEssay

Job satisfaction has been defined by Locke as how employees feel about their work, and low job satisfaction has been linked to undesirable outcomes in the workplace. The undesirable outcomes come in many forms. For example, higher levels of turnover are related to dis-satisfied workers. Low job satisfaction has been linked to lower worker productivity and performance.

Higher levels of job satisfaction have shown to be related to positive outcomes. Spector commented that among managers, job satisfaction is considered as important influence on employee behavior and organizational effectiveness. Increase in job commitment also leads to increase in employee satisfaction. Initially, this question may seem to have an obvious answer. However, thousands of studies have been carried out seeking to establish a positive and unmistakable correlation between high job satisfaction and high productivity with nothing conclusive being proven.

Researchers have attempted to correlate job satisfaction with efficiency, absenteeism, turnover, and various other aspects of performance with decidedly mixed results.

A miserable employee cannot leave the dissatisfactions of an unhappy job at the office at the end of the day. There are two types of sources available for data collection regarding research purpose i. In this research study, both primary and secondary sources are used. The researcher depends on both the sources for theoretical and empirical data. As there is very scarce published material available about the impact of privatization on job satisfaction, so researcher had to rely on questionnaire survey results for empirical data.

The instruments used for collecting data for this research consisted of questionnaire for surveys and SPSS as testing tool. Seven of the job satisfaction items were developed by Wood et al. These 14 items were then grouped into four basic factors namely, Information, Skill Variety, Closure and Pay, replicating the approach taken by Wood et al. Researcher has added two informative questions about respondent i.

50 Years of Nationalization of Banks

Age and Tenure. A pilot test was conducted to detect weakness in design and instruments. Pre-testing refers to the testing of the questionnaire on a small sample of respondents in order to identify and eliminate potential problem.

Government’s Role In Economic

Here, the researcher intended to conduct a pretest to evaluate the questionnaire for clarity, bias, ambiguous questions, and relevance to organizational setting of HBL and UBL. For this reason, the researcher distributed 6 questionnaires among 6 professionals. Pre-test of representative respondents is usually sufficient to identify problems with a questionnaire.

Nationalization of Banks and the Journey Toward from 1969 to Present by Rishi Jain at TrentEd

A self-administered questionnaire was filled out by 50 respondents 25 in each bank. A total of 48 usable questionnaires were returned. Not every respondent got equal chance to become the part of this research and the research is conducted on the basis of convenience i. Convenience Sampling Technique. Convenience sampling technique is a method of non-probability sampling in which a particular group of people are selected but it does not come close to sampling all of the population.

The researcher used this technique because it is fast, inexpensive, easy and the subjects are readily available. If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please:.

  • Arguments for nationalisation.
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It critically analyses the nationalization of banks. According to many economists nationalization of banks was the single-most-important economic policy decision taken by any government after The impact of this decision is considered by some to be, even more than the economic reforms of During that time many Asian countries were switching to more market-oriented policies, India on the other hand, supported the socialist policies.

However, with the looming banking crisis in current times, debates have emerged about the privatisation of banks. This raises the question of whether nationalisation of the bank in the first place was the right move or not. Balance of payment crisis started an era of liberalization, privatization and globalisation.

Problems of Nationalized Industry

However, the political control of bank lending continued even after the reforms which today had culminated into the bad loan or Non Performing Assets crisis that has slowed down India's growth trajectory. Given the significance of a vibrant banking system in the growth story of the nation, privatisation of banks is proposed. However, privatisation of banks is not a panacea. India must not make haste in going for the privatisation of banks, rather it must focus on comprehensive governance reforms, resolution of NPAs and creating a free market so that investment can be reinvigorated and wheels of the economy can again get back on track.

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