Q1. What were the main reasons for privatization?

Responses: Interviewees admitted that privatization is a global phenomenon or trend it encourages

private sector to play a part and reduces the state role in business activities but in case of PTCL,
privatization was not desirable because it was already in profit. Monopoly of PTCL also ended after
privatization. Some respondents were in the favor of privatization, because it was the need of that time
as many telecommunication sectors were privatizing or adopting the deregulation policy internationally.
To boost up the competition to compete and to bring innovative products in the market were other
reasons of privatization.

Under the supervision of Government of Pakistan, there was no option to make large investments in
Pakistan Telecommunication Company Limited (PTCL). One view was that Government of Pakistan had
other departments or sectors to bear their expenses, one view was that. Another reason was that
before privatization only landline was a major source of revenue. Some respondents felt that there was
an interest of Government of Pakistan to Dubai based telecom Etisalat as it could increase its wealth by
the sale of PTCL assets.

Q2. Were you satisfied with the performance of PTCL before privatization?

Responses: Majority respondents said yes and argued that PTCL privatization was not good decision.
Before privatization PTCL was already profitable so there was no need of privatization.

Q3. What was the role of government in privatizing PTCL? Now is there any intervention or involvement
of government in the affairs of PTCL?

Responses: On the role of Government of Pakistan (GOP) all respondent agreed on that although
Government of Pakistan (GOP) still has 74% share in PTCL but it does not directly interfere in the affairs
of the organization, some respondents mentioned that Pakistan Telecommunication Authority (PTA)
controls the activities of all telecom sectors and in PTCL there is an official of Government of Pakistan as
a Board of Director (BOD). Privatization Commission (PC) was established by Government of Pakistan to
take the part in the process of privatization.

Q4. What was the role of international donor agencies in the process of privatization in Pakistan as well
as in telecommunication sector in Pakistan?
Responses: Majority interviewees said that in Pakistan international donor agencies such as
International Monetary Fund (IMF), World Bank (WB) and Asian Development Bank (ADB) have their
own parts to play. Few people argued that there was no role of these agencies; it was solely a decision
of GOP. They provided instructions and different assessment reports on privatization in Pakistan. WB
also assisted Privatization Commission in Pakistan to carry out privatization policy through Institutional
Development Fund.

Q5. Give your views on Voluntary Separation Scheme (VSS)?

Responses: Overall Voluntary Separation Scheme (VSS) was attractive according to respondents. The
philosophy behind Voluntary Separation Scheme (VSS) was to shed the employees. This scheme was
established at the time of privatization to remove the old employees by giving attractive monetary
benefits to them so that they could voluntary leave their job. There were various benefits associated
with VSS Scheme. It was only for permanent employees because they could get more money than the
monetary benefits which they could earn at the time of retirement, although it was an optional scheme.
That was the footstep of brain drain from the

responses. First of all information technology has advanced and progressed and SAP system has been
introduced. Leave record is maintained on-line in SAP system. Reporting system is now on- line. All
departments have PC systems and managerial level employees have Dell Laptops. Now the paperless
culture is moving on. Customer oriented culture has been introduced, Billing and customer care (BNCC)
is good example in this regard. Before privatization customers were dealt for granted. Now well
educated people are joining PTCL and professionalism is coming after privatization. After privatization,
product line expansion like Broad Band, EVO, Smart T.V and V- Fone etc has taken place. Technology has
improved which was not advanced before privatization.

Q7. What were the alternatives to privatization?

Responses: Few interviewees explained that it was the best option for PTCL as well as for all public
sectors. It was the need of that time, some people are unhappy with it. Because they think that work
load has increased due to labor shortage in the company. In case of PTCL privatization there were some
options. Public private partnership, joint venture etc were options besides privatization. But some
interviewees said that privatization was only the option because it was under government so it could
not be a multinational. But some employees viewed that this was a wrong decision with no benefits for
employees.

Q8. What were the objectives from privatization? Have these objectives achieved?

Responses: According to responses the objectives or expectations about consequences of privatization

were:

• Efficiency

• Boast up competition

• Product line expansion

• Customer-driven culture

• IT advancement

• Profitability

• Transparency

Majority of the objectives have been achieved. Examples of Customer oriented culture are introduction
of Customer Relation Management (CRM) and New Generation Network (NGN). Although profitability in
landlines has been decreased, at Broad Band Pakistan side it has increased. On-line performance
appraisal is now conducted. It is transparent some employees gave opinions in positive. On-line
performance system is one criterion in it which is number of complaints of that particular employee
during a particular year and then is assessed him and the other is whether he is meeting his target
timely or not.

Q9. How was the choice between alternatives of privatization made?

Responses: There were opinions that Government of Pakistan (GOP) did not want to spend funds on
PTCL because it could not bear the expenses of PTCL and government wanted to sell the assets of the
company to earn the money from it. That‟s way to choose the alternatives of privatization. It is also
important that international donor agencies like IMF, WB and ADB also played their parts. Few
responses clearly identified that GOP did not consider any alternative except privatization.

Q10. How did the 1980s liberalization policies and privatization trend affect PTCL?

Responses: After Zia‟s Government, Nawaz Sharif started to privatize the units because some
government units were burden for the state according to respondent. So government also decided to
privatize PTCL to earn profit.

Q11. How important is privatization for increasing the organizational performance? Q12. Did you see
any improvement in organizational performance after privatization? Q13. What other effects of
privatization on organizational performance do you notice?

Responses: Majority responses agreed that improvement in performance has occurred in many ways
after privatization. Examples are products expansions like Smart T.V, V-Fone and Broad Band Pakistan
etc, on-line System is prevailing in the organization in the form of SAP Technology and PCs, laptops,
electronic attendance and performance evaluation system. Some positive effects of privatization on
organizational performance have occurred:

• Product line expansion

• Improved information technology

• Profit increased

• Corruption decreased

• Paper less culture

• Transparency in operations

• Healthy competition arose

• Brought efficiency

• Growth

• Pay for performance

Role of Human Resource (HR) Department

Q14. What was the role of Human Resource (HR) Department before privatization?

Q15. Has HR Department has gained strategic importance in PTCL after privatization?

Responses: Respondents discussed the role of human resource department. According to them Human
Resource (HR) Department was under Administrative Branch of PTCL before privatization. Now it has a
separate department and has gained strategic significance in policy making in the company. HR
department acts as a conduit between headquarter and administration branch and has great
contribution in establishing performance based system in the organization.

Presently, HR has an active role, appraisals of employees, restructuring of employees, pays and
department all are handled by HR Department. After the headquarter Islamabad, in Lahore the
centralized Human Resource Department is now working to see all the matters relate to that city. Same
the case is with other cities of the country. Some employees agree that HR acts as facilitator for them.
For example some employees said that when they apply for residences than Human Resource (HR)
Department facilitated them and they got the residence. Other interviewees held that HR does not
support them to increase employee benefits like compensation and benefits.

Retention Rate

Q16. What was the retention rate of employees of PTCL before privatization in 2006?

Q17. Has there been improvement in rate of retention after privatization?

Responses: Most of the respondents told that retention rate is not very good especially among
contractual employees after privatization. New terms and conditions (NTC) employees hardly completed
5 years. Their retention is a major challenge for human resource department. One reason of poor
retention rate is employees are not promoted, instead of new people are hired

for their positions. That‟s why people choose PTCL‟s strong competitors like Mobilink, Warid and
Telenor etc. Contractual employees are less committed to the organization as compared to permanent
and NCPG employees. Currently turnover rate is high. Last 4 to 5 months, in customer care department
5 to 8 people left the jobs which are highly competent and skillful people, which is simply a brain drain
of human resource and it is a big problem for the company. They all were. Downsizing is continuing.
Before privatization it was above 95% approximately.

Types of Employees and Compensation and Benefits

Q18. Give the categories of employees present in the organization before 2006?
Q19. Give the types of employees in PTCL currently?

Responses: There were 2 types of employees at PTCL before privatization:

• Permanent employees or Basic pay scale (BPS)

• New compensation pay grade (NCPG) There are 3 types of employees currently at PTCL:

• Basic pay scale (BPS)

• New compensation pay grade (NCPG)

• Contractual New terms and conditions (NTC) employees