The Ministry of Information Technology (MoIT) has turned down Ministry of Defence (MoD) offer that showed interest in taking over the Telephone Industries of Pakistan. The defence ministry offered this proposal to MoIT only if the liabilities of Telephone Industries of Pakistan (TIP) were cleared.
Telephone Industries of Pakistan (TIP) was a private limited company which was working under the administrative control of MoIT.
MoIT Rejects Defence Ministry’s Offer to Take Over Telephone Industries of Pakistan
The Government of Pakistan (GoP) has 100% stake in TIP with around 896,193 ordinary shares of Rs. 1,000 each.
The challenges that led ultimately to the privatization of this company include the company’s obsolete plants and machinery, old skill base and the high competition in the telecommunication sector specially in vendor market and also the heavy burden of labor. Its sales were only Rs20 million in financial year 2014-15.
The Cabinet Committee on Privatization was informed that the Ministry of Information Technology didn’t accept the terms of the Ministry of Defence (MoD) , hence, the privatization of TIP may be initiated soon.