ISLAMABAD (Urdu Times) Privatization is the only solution for Pakistan’s economic recovery

ISLAMABAD (Urdu Times) Privatization is the only solution for Pakistan’s economic recovery These government institutions, which were meant to serve the people and improve the country’s economy, have become a picture of incompetence, corruption and mismanagement. Pakistan is a country rich in natural resources, a young workforce and a rich cultural heritage. However, when we examine its government institutions, a much darker picture emerges. The average Pakistani citizen suffers daily not only from the high cost of living or lack of opportunities but also from exploitation by the government institutions that were created to serve them. Take the power sector, for example. Despite paying one of the highest electricity tariffs in the region, Pakistani citizens endure prolonged load shedding of electricity. Deteriorated infrastructure, power theft, and poor grid maintenance result in significant line losses, yet no serious efforts are made to address these problems. Instead, the government increases taxes to cover these losses, placing a financial burden on already struggling citizens. The ever-growing circular debt reflects the inefficiency and corruption that exist in both public and private power companies. Every year, this debt grows further, forcing citizens to pay the bill through taxes and high energy prices. Similarly, Pakistan Railways, once a reliable and affordable means of transportation, is in shambles. Trains are constantly delayed, accidents are frequent, and the overall quality of service is deplorable. Massive injections of public funds have done little to improve the situation, as is corruption. Poor equipment, bribery, and overstaffing are just some of the problems plaguing the institution. Train accidents caused by poor maintenance and old tracks have claimed hundreds of lives in the past decade. Yet there is no real accountability and those responsible for mismanagement go unpunished.

Then there is Pakistan International Airlines (PIA), a once-famous airline that is now a national embarrassment. Political interference has destroyed the institution, with unqualified individuals being appointed to key positions based on their connections rather than merit. The result is predictable: incompetence, corruption, and financial losses running into the billions. While the government continues to pour taxpayer money into the failing airline, its management is poor and unreliable. Flights are often delayed or canceled without explanation, and customer service is virtually non-existent. Yet the average Pakistani is paying the price for this sinking ship through taxes and expensive tickets. The situation in Pakistan’s health sector is equally dire. Public hospitals and healthcare facilities are in shambles, with a lack of medical equipment, poorly trained staff, and inadequate supplies of essential medicines. Corruption is rampant, with many public hospitals demanding bribes for basic services. The wealthy segment of society can afford to seek treatment in private hospitals or even abroad, while the majority of Pakistanis face underfunded and poorly managed state facilities. Even when funds are allocated to improve healthcare, they often end up in the pockets of corrupt officials, breaking the system. Education in Pakistan, especially in rural areas, is another area where state institutions have failed. Many government schools lack adequate infrastructure, qualified teachers, and modern materials. Ghost schools—existing only on paper and teachers who receive salaries without ever coming to work—are widespread problems. These practices are a direct result of unchecked corruption and poor oversight. Meanwhile, private schools are flourishing, creating a growing disparity in education that has created an unequal society where the rich receive quality education while the poor are left behind. The state’s failure to provide adequate education will have long-term consequences for Pakistan’s future development. The fact is that every major government institution in Pakistan has become a symbol of corruption, incompetence and public exploitation. Be it the power sector, railways, airlines, healthcare or education, these institutions are wasting the country’s resources while giving very little in return. They were originally set up to serve the public, but they have instead become parasites, enriching a small group of people at the expense of the common citizen. Privatization is the only solution. It is clear that these institutions are beyond saving in their current form. The government has no desire to reform them. Political interference, nepotism and corruption have become rampant.Only by privatizing these institutions can they be freed from the clutches of corrupt officials and political cronies. When these sectors are handed over to private companies, there will be a greater emphasis on efficiency, accountability, and customer service. Take the example of other countries where privatization has transformed struggling public institutions into profitable, well-functioning companies. Competition in such systems leads to improvement, innovation, and better service delivery. When private companies are responsible for their own profits and losses, they cannot afford the kind of incompetence and corruption that has become the norm in Pakistan’s public institutions. Privatization will create an environment where merit is rewarded and resources are allocated based on need and performance rather than political connections. Pakistani citizens deserve better. They deserve institutions that serve them, not rob them. They deserve reliable electricity, safe and affordable transportation, quality health care, and an education that equips their children for the future. Privatization offers the best way to achieve these goals. It is time for Pakistan to break free from the cycle of corruption and incompetence that has held the country back for so long. The future of the nation depends on it. One advantage of privatization is that some money will flow into the state coffers. This money should be dedicated to a fund for a useful purpose, see whether government institutions sink further into corruption and mismanagement or embrace privatization and create a system that works for the people. Privatization of government institutions is necessary. Immediate privatization of loss-making institutions and increase in exports has become inevitable. The government should immediately take steps to privatize loss-making institutions and increase in exports. In privatization, the government sells its institutions or assets to the private sector. The government contracts a private company to provide specific services that it previously provided itself. The government reduces restrictions on private sector intervention in certain industries, which increases competition. Privatization can have both advantages and disadvantages. For example, privatization can increase efficiency and improve the quality of services, but it can also lead to job losses and increase inequality.

Privatization means transferring state-owned institutions or assets to private ownership. In this process, the government sells its owned businesses, services, or other assets to private companies or individuals. The purpose of privatization is often to increase efficiency, promote competition, and reduce the financial burden on the government. Overall, the total loss of these government entities, SOEs, has reached Rs 5800 billion, which is a burden on taxpayers. The total circular debt of electricity, gas, and oil has also reached Rs 4900 billion, which is very worrying. Prime Minister Shehbaz Sharif directed that all decisions be fully and effectively implemented, and he will regularly monitor the progress of the work underway in the Privatization Commission. According to the statement, Prime Minister Shehbaz Sharif was briefed on the progress of privatization of the institutions included in the privatization list in 2024 that the privatization of the national airline and discos would be completed in accordance with the set economic, institutional and administrative targets. The Prime Minister said that the privatization of loss-making national institutions is indispensable for the improvement and development of the country’s economy, while the government’s top priority is to complete the privatization process in an effective, comprehensive and transparent manner. The Prime Minister directed the relevant institutions to fulfill all legal requirements and transparency conditions in the privatization of selected institutions. Illegal occupation of valuable lands of national institutions is not acceptable under any circumstances. However, all possible precautions should be taken in the disposal of valuable lands of national institutions during the privatization process. Shahbaz Sharif, while giving instructions during the special meeting, said that the phased privatization targets of the above institutions should be set according to the economic conditions of the market so that the national treasury can be protected from possible losses at all costs. The Prime Minister said that all decisions should be fully and effectively implemented. I will regularly monitor the progress of the work underway in the Privatization Commission. Furthermore, expert consultation and international standards should be taken into account in the process of privatization and restructuring of institutions. According to the report, the Prime Minister was briefed on the progress of privatization of institutions included in the 2024 privatization list. Commission officials said in the briefing that the phased privatization of selected institutions has been arranged keeping in mind legal, financial and sectoral requirements. Moreover, as per the program approved by the cabinet, the phased privatization of selected institutions will be completed within the stipulated time frame and all institutions included in the privatization list, including PIA and power distribution companies (DISCOs), will be privatized in accordance with the set economic, institutional and administrative targets. The meeting was attended by Federal Ministers Sardar Owais Khan Leghari, Ahad Khan Cheema, Chairman Privatization Commission Muhammad Ali, Minister of State for Finance and Railways Bilal Azhar Kayani and other concerned officials and senior officers.