karachi shipyard engineering works（卡拉奇船厂工程工作）.docVIP

CONCEPT PAPER Investment in Karachi Shipyard Engineering Works Concept Paper Series | Manufacturing | Version 1 | Serial No. MFG-11 Prepared on November 28, 2006 by: Dr. Junaid Ahmad Investment Advisor Government of Pakistan Ministry of Finance (External Finance Wing) ‘Q’ block, Pakistan Secretariat Islamabad. Tel: +92-51 9203507 Fax: +92-51 9203507 E-Mail: drjunaid.mof@cyber.net.pk INTRODUCTION Karachi Shipyard Engineering Works Ltd. (KSEW) is the first shipbuilding and heavy engineering works of Pakistan. It was established in the early fifties and incorporated as a Public Limited Company in 1957 under the aegis of PIDC. Its paid up capital is Rs. 464 million which is entirely owned by the Government of Pakistan (GoP). KSEW is working as an autonomous commercial organization under the Ministry of Defence, GoP. The Company is managed by a Board of Directors with a Managing Director as the Chief Executive. KSEW has obtained a Quality Management ISO 9000 certification. It is located at West Wharf, Karachi and spread over an area of 71 acres. SITUATION APPRIASAL Corporate Governance - KSEW is run by the Board of Directors and a Managing Director from the Pakistan Navy. There are hardly any experienced private sector personnel in the BoD. The top management position is held by a Naval person, who is at the last leg of his Service (max. 02 years). As such his policies and targets / objectives are not long term. KSEW should be immediately privatized. This will bring about in KSEW a shift in management style from a Government-led bureaucratic system to one that encourages initiative and competition based on the market mechanism. Human Resource - KSEW has been suffering in all its vital areas of activities e.g. Management, Technical, Finance and Marketing. KSEW’s organization is considered to be over staffed. The total manpower is reported to be 2547. It seems that this figure has not yet been reduced. The appropriate figure o