It is an unfortunate fact but a fact nonetheless that countries have to make difficult decisions when it comes to finding their unique path to development. Many countries in the global south shy away from making these strategic decisions because it shakes the status quo and hence their own interests, but those countries that have sacrificed their today for a better tomorrow are certainly now better off than those that continue to refuse to plan for tomorrow. When Deng Xiaoping led Chinese economic reforms, he faced a backlash both from his party hardliners and the populace but, by moving away from populism and inherently unsustainable socialism, he was able to lift the curtains to a new, better — admittedly not perfect — China.
In no way am I comparing the Chinese paramount leader to Nawaz Sharif but what I plead is the need for cautious, forward-looking decision making by all relevant stakeholders so that Pakistan can look back from a point of progress, not that of despair. So far, the Sharif administration has made some very positive reforms, which certainly is a moment for cautious optimism. One of these is the willingness to reform the ownership of Pakistan’s inefficient and overstaffed state owned enterprises. A state that struggles to provide the basic services of education, healthcare and security to its citizens has no right to linger on loss-making corporations that need millions of dollars every year to sustain their otherwise failing operations.
The recent wave of protests against the privatisation of Pakistan International Airlines (PIA) by its employee union is nothing new, and to an extent it is understandable. A large number of them have been appointed due to their political affiliations, many have roles that could much cheaply be outsourced or replaced by modern technology, while others simply are uncertain of their fate, which feeds their desire to maintain the status quo. It is certainly the duty of the government and the management to ensure that no employee is unfairly treated or has to go through the torture of an uncertain future, but what should be made clear to all of the employees of PIA is that the airline can no longer be bailed out by the people of Pakistan.
There is no doubt that if it were not for the federal government’s repeated bailouts, PIA would have never survived, but it should also be without doubt that, without the political interference of the political parties into the management, of what was until late 1980s a fairly decent carrier, PIA would have never become the airline in crises that it is now. It is time to get rid of both the bailouts and the political interference, and the only way to do both is to hand over the management of the national flag carrier to a private party, so for once PIA gets to learn to play by the rules of economics.
Will everyone in PIA lose their jobs? Certainly not but some trimming of fat is a necessity. The employee per plane ratio — standing at a staggering 780 employees per plane, compared to Emirates’ 220 per plane — is outright unsustainable. If the PIA unions believe that the people of Pakistan will sit back and continue with this mockery, then they are wrong. Indeed, I sympathise completely with the plight of the workers’ union; no one wants to lose their livelihoods and essentially they should not, but unwise decisions by former governments have left no choice than to make some unfortunate but in-eliminable decisions. Certainly, it should be made certain that those non-core departments that are broken off or eliminated, such as catering or ground services, do not encourage unnecessary layoffs and do not ignore the rights of employees, including pensions and access to heath insurance. PIA needs strong reforms like these. The unions cannot be allowed to take the management hostage but, at the same time, the management cannot ignore the rights of the employees.
What is needed for PIA now is massive investment and tough but fair decisions that can turn the airline into a sustainable and globally competitive carrier. This sort of investment is unwise for the government to make because at the end of the day its political motives will outweigh sensible economic decisions — take the 2010 164-page comprehensive restructuring plan that recommended the elimination of 4,300 staff positions but, like almost all other plans for the airline, was never implemented. If PIA has any hope of survival it is time to privatise it so a culture of compliance and a structure of meritocracy can be built. The only way forward for the government is to maintain its position of a pathway privatisation that allows for a majority of its employees to retain their jobs and all of them to retain their dignity while turning the airline into a profit-making entity. Simply put, business is not the government’s business. It is time Pakistan woke up to this reality.
The writer is the CEO of the Centre for Youth Activism of Pakistan. He is pursuing a degree in International Development from the University of London. He tweets @shahrukhwani