The flag carrier in particular
Once again PIA comes close to an embarrassing (partial) shut-down because it could not meet its own date for even a tiny portion of its outstanding dues with PSO. Its receivables with the oil giant, it is reported, have risen to above Rs12.1 billion over the last couple of years. And its own promise of a Rs2 billion payment by end of business day Tuesday, just to keep the planes flying, was apparently not met. Chatter doing the rounds in newsrooms ahead of formal announcements indicates PSO will not follow through on its threat of not fueling PIA planes till the payment is made. The ministry of aviation intervened, apparently at the last minute, urging PSO officials to avoid actions that would shame the nation. It is also learnt that despite cutting losses, the airline is hemorrhaging approximately Rs20 billion annually. If such is the cash flow despite shedding weight, would it not be better to close the chapter on it and start a new national airline?
The ministry’s fire-fighting might have kept the national flag carrier from ‘going belly-up’ yet again, but unfortunately it does not seem much concerned about halting the PIA’s disgraceful and persistent decline. However it’s not clear what any recommendations from the ministry can achieve when there is little or no appetite for effective restructuring where it matters in Islamabad. Just like every party in every election campaign, the N-league made much talk about restructuring public sector enterprises. Yet those at the helm took little time remembering why they do not honour such promises as a rule. Politicisation of PSEs has been standard practice since the decade of democracy, and removing political appointees and inducting professionals requires the kind of political will that is in short supply in the capital these days.
It is little surprise, therefore, that railways continues to register losses despite tall claims by the concerned minister, Khwaja Saad Rafiq. He’s had a lot to say about politics and economy, especially the kind of politics that harms the economy, but there’s been little to impress with regard to his ministry. And the less said about the steel mills, the better, especially considering the way family silver has been allowed to go waste. Interestingly, what little advances were made on the privatisation front, too, were controversial and had to be forcefully rolled back. The government seems contradicting its own policies. Clearly the restructuring and privatisation policies were not well thought out – perhaps another one of those ‘electoral promises’ that suited the campaign. Now, after almost a year-and-a-half in office, the ruling party must turn its attention to the losses of PSE. Its position so far, especially regarding the carrier, has been cause for considerable concern.