Privatisation puzzle

At a time when Pakistan is staring down the barrel of economic prudence, privatisation has become an economic imperative. With IMF placing it squarely at the heart of structural reforms, and the country's public sector bleeding taxpayer money, there is little doubt about what needs to be done. And yet, decades into this realisation, Pakistan has not managed to privatise even a single major loss-making entity.

Now, the government has unveiled yet another roadmap — a five-year, three-phase plan to privatise 24 SOEs. These include PIA, First Women Bank, House Building Finance Corporation, power distribution companies like IESCO and FESCO, and later, large players like State Life and key power generation firms.

The plan looks ambitious, but the question is unavoidable: if the state has failed to privatise even one perennially loss-making airline after years of effort, what makes this new timeline any more credible? PIA alone has drained hundreds of billions, with no functional service or reform to show for it.

The deeper problem is not in designing privatisation plans but in executing them. Each past attempt has collapsed under the weight of political indecision and bureaucratic red tape. Powerful unions, legal entanglements and the fear of public backlash have repeatedly brought the process to a halt.

Given the track record, Pakistan's ability to successfully carry out its ambitious privatisation plan remains highly uncertain — akin to pulling a rabbit out of a hat. But one must not lose hope. If a structural plan is followed with disciplined execution and the right political will, privatisation can still succeed. The key lies in breaking the cycle of short-term thinking and establishing a clear, transparent roadmap.

A phased approach, like the one outlined, provides a chance to build momentum and gain public trust. Starting with less contentious entities and gradually moving to larger, more complex ones like PIA could ease the political resistance.