The recent move by the PML-N government to sell off Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) is not the first such attempt. It’s a page taken directly from Pervez Musharraf’s playbook. A number of national institutions have already been privatised,but the case of PIA and PSM is substantially more sensitive. It is no secret that both the PIA and PSM are absolute despair and have accrued mammoth losses. However, upon closer inspection, it seems that the situation is self-inflicted.
For the past five-years, we have heard persistent claims by the PMLN government regarding economic prosperity and corruption-free management. Numerous projects have been launched,but few have been realised. Billions have been spent on the metro bus projects, but at the same time PSM has been shut down, and PIA has accrued exponential loss.
PSM is Pakistan’s largest industrial unit. A gift from Shaheed Zulfikar Ali Bhutto that was born at a time when foreign powers were bent upon restricting Pakistan’s economic progress. What these enemy designs couldn’t achieve has been done by the current government. As of today, the PSM has been shut for over 32 months, and its 12,500 employees have not been paid for over six months. This comes at a time when demand for steel is at its highest with CPEC in full swing and domestic construction on the rise. Domestic demand is being met through imports hence accruing to the existing current account deficit. PSM has the capacity to produce 3 million tons annually. So the obvious question is why the PMLN government cannot utilise this national asset despite the fact that Nawaz Sharif and his sons attribute their personal wealth to their expertise in running their family steel empire?
If PSM is not revived, over ten thousand Pakistanis will lose their livelihood, having a ripple effect on the economy. The immediate beneficiary will be our rival India which has a robust steel industry and will be eager to meet the high demand for steel in the region. PSM has a tremendous opportunity and potential to contribute to Pakistan’s economic progress. All that is required is political will and clean intentions.
The PSM has been shut for over 32 months, and its 12,500 employees have not been paid for oversix months
The case of PIA raises even more questions. The national flag carrier had always been a source of pride for every Pakistani. Once considered as a leading global airline, ironically, it was the PIA that helped establish renowned airlines such as Emirates. Even though demand for air travel is increasing, PIA has been consistently shutting down vital routes such as New York. This has caused great distress to the Pakistani-American diaspora who are now facing increasing hurdles to bring back dead bodies of their loved ones.
Further, failed misadventures such as the costly PIA Premier services and absurd Open Sky agreements undertaken by the current government have contributed to the debacle. Certain sections of the media too have misattributed unrelated incidents to PIA. One such mishap was an Emirates accident at Islamabad airport that some TV channels falsely connected with PIA.
Ironically, the current Prime Minister Shahid Khaqan Abbasi owns his own airline that seems to be doing quite well. While his Air Blue is increasing its profits, PIA was sabotaged by acquiring aircrafts and services from foreign airlines at exorbitant rates. On a recent trip to Islamabad, I had to confirm twice that I was on the correct aircraft because it was carrying the flag of Vietnam and I was greeted by Vietnamese staff. With rising unemployment in our own country, the current government is outsourcing jobs to foreigners.
If PIA is lost, not only will 15000 Pakistanis lose their livelihood, but we will also lose key domestic routes such as Gwadar along with other smaller cities that a private airline may not cater. It is pertinent to mention here that if PIA is privatised, our nation will also lose valuable assets such as the Roosevelt Hotel in New York and Hotel Scribe in Paris with a combined worth exceeding a billion USD.
Pakistan has already given up strategic assets such as Gwadar Port and PTCL to foreign entities. The obvious dilemma is that these foreign entities work for profit rather than in the interest of Pakistan. The only political party that is currently highlighting these concerns is the PPP. Bilawal Bhutto Zardari has announced that his party will resist any move to privatise national assets and a resolution in the Sindh Assembly has already been passed in this regard. I firmly believe that each citizen must hold the government accountable and ensure that strategic assets are acquired rather than handed over to foreigners.
The writer is a former Pakistani diplomat and currently chairman of an NGO. He tweets @nadirgabol
Published in Daily Times, March 10th 2018.