After several rounds of clanging pots and pans, the much-talked-about privatisation spree of state-owned white elephants rolling in the dirt with hard-earned public finances seems to be headed towards a hiatus. In stark contrast to what a high-level huddle had proclaimed regarding the restructuring process last month, the cabinet once again decided to dole out yet another lifeline to the bleeding PIACL.
An expensive shot of Rs 8 billion is to be inserted into the arm of the national carrier so that it can continue operating in the market. Just because of a significant credit line extension green-lit by the Pakistan State Oil, the flag-adorning aeroplanes would manage to finally take off until the next hiccup. It was only last week that a severe financial crunch had led to cancellation of hundreds of flights; slashing the daily revenue by an overwhelming 70 per cent.
The fuel crisis had occurred at a time when grand plans aimed to resume flights to the United Kingdom. In addition to losing whatever threadbare confidence and appeal it enjoys in the market, the latest instalment of its dire straits has given enough warnings to the stakeholders about any revival plans. The fact that an international enterprise has to wait for some salvation in order to open shop speaks volumes about its sustainability. At the risk of sounding repetitive, these pages would still remind the state that PIA should have been privatised a long while ago–precisely in 2001 when its finances had touched break-even after decades of incurring losses. From a tarnished reputation to limited market options to little to no fight against local rivals to a sordid saga of corruption and political appointments, a silver lining is very unlikely.
Against these crippling circumstances, the debate should have long left the schedule squibblings and focused more on the protocols. The mechanisms to fetch the best price and establish clarity on the divestment are crucial to making lemonade when decades of bad policies have given us lemons. *