And the PIA example
The PIA chairman may, at best, have bought just a little more time by getting protesting employees to back down; till they get an audience with the finance minister, at least. But even if Dar sb can convince them that the ordinance is really only meant to convert the hemorrhaging public enterprise into a corporate entity – and not to pave way for privatisation – this question will pop up again sooner rather than later. And the fallout will be worse, of course, if it turns out that the original intent was in fact selling it off, despite the sweet talk.
It is not PIA itself that is the problem in this particular case, it is the manner in which the government is approaching problematic PSEs. And, truth be told, it will not be able to put off privatisation for too long; not with the IMF breathing down its neck. Its inability to meet IMF targets throughout the outgoing program has left it more vulnerable than before to Fund diktat. The recent Rs40b additional tax burden also stems from the same missed targets. But taking unilateral decisions and keeping the opposition in the dark about matters of national importance is hardly the right way to proceed.
By indulging in needless controversy, the government has once again triggered an opposition and employee revolt that has halted more than fifty flights and affected hundreds of passengers. How such confusion –which was a foreseeable fallout of such an approach – helps in the exercise seems lost on all save the government itself. If PSEs have to be put up for sale, they must first be turned around. For that, as much as converting them into corporate entities will help, it will be better if political appointments, corruption, etc, are contained first. And once official intent is made clear by its actions, all parties – treasury and opposition – must be taken on board to ensure all processes are transparent and fair.