Daily Times

As powerbrokers in Islamabad scratch their heads, wondering how to damage control after a long-drawn-out and full-of-thunder process to privatise PIA fell flat on its face, a smug look on experts exclaims: We told you so. The potential sale of 60 per cent of PIA shares stopped in its tracks after piquing the interest of a single bidder, that too with a measly offer of Rs 10 billion; raising concerns about the future.

No qualms about the national carrier being decried as the white elephant, but after seeing the much-talked-about privatisation spree fall short of expectations, does the government still have the upper hand to steer through deliberations? Quite expectedly, the disappointing bid prompted buzz about whether those at the helm of the affairs actually held the best interests of a valuable state-owned enterprise at heart. A significant criticism focuses on how the entire bidding was managed, which led to forces significantly undervaluing the PIA.

What needs to be understood is that largely due to pressures from employees’ unions and fears of bad press, the matter has always been passed from one government to the next like a political hot potato. Had privatisation been seriously considered at a time when the PIA was still basking in the limelight of the yesteryears, the process may not have been so counterproductive or embarrassing. Therefore, before grilling the Sharif government on the coals, the complicit role of earlier administrations (many of which have featured the same politicians) should also be considered.

Given the recent setback, a longer delay can be expected, dashing alongside all hopes of bringing in much-needed investment whilst alleviating the treasury’s subsidy burden.

If there is any silver lining to this tragicomedy, it is that the government has another opportunity to rethink its approach to privatisation. Only after it swallows the bitter pill that an airline in this decrepit condition would not attract serious buyers can it consider alternative strategies that prioritise the long-term sustainability and growth of national assets like PIA. *