Daily Times

Over the past few years, Pakistan has embarked on an ambitious journey to privatise its state-owned enterprises to boost the economy. Government after government came to power, equipped with a colourful arsenal of buzzwords to discuss the challenges of managing white elephants, putting order in the house, reducing the budgetary injections and the perpetually in-vogue promises of prosperity.

Things did appear to have sped up under the caretaker administration, but discussions started losing their pace post-elections in light of the tussle between the deputy prime minister Ishaq Dar and his finance czar Muhammad Aurangzeb. However, with the recent approval of a substantial budget for the privatisation commission and a five-year program aiming to divest at least 24 such institutions, the government appears set on resolving these issues. Specifically, discussions have centred around privatising the flag carrier, Distribution Companies, and the iconic Roosevelt Hotel, looking at the administrative challenges and the concerns of the general public.

Privatising SOEs is not a new concept in Pakistan. Back in the ’90s, such moves drew the ire as putting the country on sale, bit by bit, but today, given the country’s financial constraints, the desire to reduce the fiscal burden should be, for the lack of a better word, commendable. To put the point further across, we have more than enough evidence from the rest of the world to substantiate how struggling public enterprises can thrive under competitive, profit-driven private models.

The inevitability of this policy, nonetheless, does not address the opposition from stakeholders concerned about job losses, reduced benefits and potential monopolisation of key industries. Such resistance has historically slowed down privatisation and created an unfavourable environment for investment.

Using the PIA as a case study, the government needs to proceed cautiously, ensuring transparency in its operations for a fair, competitive, and transparent transfer. It should strive for improved performance while exercising caution. Sustainable development requires reliable data to ensure competitive prices in the short run, along with mechanisms to hold private parties accountable for balancing their profits with consumer needs. *