Building on the momentum of the caretaker administration, the PML(N)-led government has been creating a great noise about a way to deal with the perpetual white elephants. However, mounting debts and substance-less deliberations suggest that pressure from the IMF has, to date, failed to push the ruling elite towards a reforming agenda. According to a report by State Bank, public sector enterprises, while faring better than last year, still have a cumulative debt of an alarming Rs 17 trillion.
The financial worries persisted despite support to the tune of $600 million granted by the Asian Development Bank on top of a clear roadmap to establish transparency and accountability. Today, when asked about whatsoever became of the prior pledges to revolutionise the public sector, then-finance minister Ishaq Dar might take out the tried-and-tested card from his blame-game arsenal. Sadly, the writing on the wall proclaims that whichever party has managed to rise to the top in the last few years remained aloof from the debilitating state of affairs, far too occupied by the political problems to focus on the economic needs of these companies. Today, as the present opposition is actively putting stumbling blocks in the path of the treasury’s plans to best deal with these enterprises, which are perfunctory as they are, it is becoming abundantly clear that privatization might not be the silver bullet solution many hope for.
Privatizing loss-making SOEs may seem like a logical step to alleviate the burden on the government. The reality is far from ideal, especially when the process of privatization is riddled with challenges and no politically-elected government wishes to imperil the goodwill of their elected vote bank due to uncomfortable measures.
From finding suitable buyers to negotiating fair prices, the journey is fraught with uncertainties, especially for a government that has yet to win the consensus of its legislature. Instead of repeating promises and using buzzwords as quick fixes, a more holistic approach is needed to implement structural reforms, enhance transparency, and improve governance practices. *
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