The more things change

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Indeed, the more things change, the more they sometimes remain the same, especially in the finance ministry in Islamabad, that too when it decides on the fate of much talked about PSEs, hemorrhaging approximately Rs300 billion every year even as the economy is choked by stagflation. Finance minister Dr Sheikh did not take piercing questions on the PSE matter too well at our usual pre-budget seminar almost exactly one year ago, promising visible change before the fiscal ran its course. Yet there is no movement. There is not even a decision on the fate of these sick entities. Whether privatisation or strategic restructuring under government control, which is it going to be? The picture is no clearer than one year ago.
Yet even before crucial long term decisions are made, the initial exercise will be the same. Even if privatisation is chosen as the way forward – which is hardly likely – these money losers will first have to be brought back into shape, so much of the initial management decisions will be the same. That there is still no movement means one of two things. One, the finance ministry, and therefore also the highest offices of government, are simply not aware of the need to return to profitability, at least stem leakages. Now that is hardly likely, so reluctance must be deliberate.
Two, there is simply no government will to move forward on the PSE issue. Tough decisions will have to be made. Political appointees will have to be shown the door. Competence will need to be rewarded. Hardly an appetising election year cocktail for those in power. So the PSEs shall remain a debilitating anchor weighing down the entire economy. Even now, news reports indicating high-level ministerial committees looking into the matter are simply page fillers. True, the more things change the more they remain the same.

1 COMMENT

  1. There are several issues which need to be looked into by AGPR like previous disbursement of 500 billion against circular debt. Who is now getting the major chunk of about 300 billion against the same head.Thirdly, how Bonds have been issued against such a heavy interest rate of 8.5% and who are the 4 persons who have invested $ 2 billion.This,under these circumstances, has become necessary to investigate and bring facts before the tax payers of this country. In the process some other serious irregularities will come to light.

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