Daily Times

Certain organisations, it seems, can’t keep out of the news. Taxpayers find it particularly galling to learn that PIA and its twin – Pakistan Steel Mills (PSM) – accumulate losses worth billions, year after year. Yet neither of these public sector giants has faced the chopping block. Rather, both are surviving against the odds, denting the public exchequer.

The cabinet’s Economic Coordination Committee (ECC) recently decided to restructure the national airline. In other words, carve it up into two separate entities: Good PIA and Bad PIA. The Good PIA emerges as clean as a whistle, free to take to the skies unburdened by the question of liabilities. In fact, it will only own Rs137 billion in liabilities and hold all core assets. The Bad PIA, for its part, will be left to pick up the Rs457-billion liability bill and ‘retain ownership of non-core assets’.

The Good PIA will seek new ventures, survey profitable routes, modernise its fleet, promote religious tourism and share routes with other airlines, as part of its ambitious plans. Although one is quite sure who will likely fill the upper tiers of the Good PIA — one remains unsure of who will head the Bad PIA. More or less, on similar lines, the government also decided to ‘outsource’ Pakistan Railways (PR). Thus, all train routes incurring loses are in a state of privatisation, as PR has also represented a huge loss-making enterprise.

The Good PIA will seek new ventures, survey profitable routes, modernise its fleet, promote religious tourism and share routes with other airlines. Although one is quite sure who will likely fill the upper tiers of the Good PIA — one remains unsure of who will head the Bad PIA

Following PIA, Pakistan Railways has devised four models to tackle its so-called financial revival. Under Model-1, PR will outsource most of its passenger trains. Under Model-2, PR will encourage the private sector to run its own engines, passengers and cargo trains, using PR tracks. Model 3-4 follows a similar path. Looks ingenious!

Now why do PIA and PR attract more public attention than Pakistan Steel Mills, which represents a huge financial black hole in its own right? After all, PSM hasn’t produced a single rod of steel since 2015 but its employees receive Rs380 million in total salaries every month. The answer is that both PIA and PR are more visible; as one flies through the air while the other rolls along tracks. Sadly, PIA planes usually run late or, at times, smoke emits from their engines while PR’s bogies frequently derail or else catch fire. The PSM, on the other hand, attracts no attention and makes no announcements of either accidents or late arrivals. Its executives sit smug with the satisfaction of pocketing monthly salaries. Yet why leave Pakistan Steel Mills out in the cold? Surely it deserves the same treatment: Good PSM and Bad PSM.

PSM and PR hold no overseas assets unlike the national flag carrier. Pakistan faced an imbroglio when Tethyan Copper Company (TCC) initiated a case before the High Court of Justice in the British Virgin Islands (BVI) to attach country’s assets abroad until the settlement of the Reko Diq case. Back in December, the court ordered to attach three hotels belonging to PIA until the TCC claim of $6 billion was resolved. However, the BVI High Court last month released the attached properties and allowed TCC the right to appeal by June 4.

While delivering the good news about the release of properties, the Law minister appealed to the nation to pray that the final BVI court decision turns out in our favour. Though, the people, especially those belonging the lower strata of society, are already praying for basic facilities, such as jobs, so that they may maintain the relationship between body and soul. So, while they may not pay heed to what the Law minister asked for, the taxpayers will surely pray for the release of PIA assets. Not least because it is their billions in hard earned cash that are perennially sucked into the black holes of public sector entities.

It’s time to introspect and ask why state-owned entities run losses yet continue to operate for years. Salaries and other perks and privileges of their executives continue to increase despite balance sheets remaining in the red every year. These senior executives who oversee public entities have a lifestyle of their own. Imagine the palatial houses with driveways and green spaces around in which the senior PR officials live in, say, Mao Gardens in Lahore, or on the Bahawalpur road in Multan. Imagine the privileges national airline pilots enjoy when many of their counterparts in the US have to work extra jobs just to get by.

PTCL (Pakistan Telecommunication Company Ltd) provides a lesson in state-owned success stories. It transformed into a profitable and efficient enterprise once 26 percent of its shares were handed over to a foreign investor. Hence, instead of conjuring up novel ideas of Good versus Bad PIA, peddling new models for Pakistan Railways or rejuvenating the Pakistan Steel Mills — why not privatise them all in one go? Pray the taxpayers!

The writer is a Lahore-based columnist and can be reached at pinecity@gmail.com