The companies that were privatised became more efficient outfits
ISLAMABAD: This refers to a topic that recently appeared in the press about the benefits of privatisation. As it turns out, it is not the business of the state to undertake the running of commercial organisations. Time has proved that companies that were in the government sector always proved white elephants and a burden for the state. It has been found that those companies that were privatised, became more efficient outfits, such as those in the banking industry, telecommunications industry and in the supply of electricity.
The glaring examples of the Pakistan International Airlines (PIA) and the Pakistan Steel Mills are also before us. Both entities are creaking under the burden of state ownership. If they are to be profitable and more service-oriented, then the only way out for them is privatisation. The mention of the possibility looks like anathema to the employees of PIA. It seems they would rather close the airline and lose their productive jobs than allow the airline to even accept a strategic partner, much less allow privatisation.
Iftikhar Gul
Published in The Express Tribune, April 2nd, 2016.
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