Pakistan’s economy is spiraling deeper into crisis, with state-owned enterprises (SOEs) bleeding billions due to chronic mismanagement, political meddling, and outright chaos. Rather than fixing these broken giants, successive governments have opted for a quick fix: fire-sale privatization. A recent report in Pakistan’s Express Tribune lays bare this disastrous pattern, where companies are propped up with public money until they collapse under debt, only to be offloaded at bargain-basement prices.
The rot runs deep across sectors. Professional management gives way to political cronies, commercial discipline evaporates, and years of neglect culminate in massive losses. When privatization finally happens, the public foots the bill for failures while private buyers scoop up the assets. This isn’t strategic reform—it’s a desperate bid to salvage national pride amid economic freefall.
Take Pakistan International Airlines (PIA), once a proud regional carrier. Overstaffing, interference from politicians, and a disregard for business basics turned it into a money pit. Governments poured billions into keeping it afloat, even as service quality plummeted and competitors surged ahead. Privatization wasn’t a planned revival; it was an admission of governance bankruptcy.
Proponents point to PTCL, the telecom giant, as a success story. Post-privatization, it modernized networks and expanded services, boosting performance. Yet, even here, the flaws glare: thousands of ex-employees and pensioners are still tangled in lawsuits over pensions and rights, highlighting a process that prioritizes deal-closing over human costs.
K-Electric, the privatized power utility, shatters the myth that privatization automatically lowers consumer prices. Tariffs have skyrocketed to record highs, burdening households while the company struggles. Pakistan’s track record shows privatization as reactive panic, not thoughtful policy. Without real governance overhaul, selling off SOEs will only deepen the crisis, leaving taxpayers shortchanged and the economy vulnerable.
