Governments are least involved in business activities in developed countries and private sector is allowed to manages businesses from food manufacturing to transportation and all other fields of the economy. The governments act as facilitators and only give playground to investors, entrepreneurs and traders to launch their enterprises. On the contrary, Pakistan has variety of business corporations under supervision and ownership of the government and causing annual losses to tune of billions of rupees to the national exchequer. Pakistan Steel Mills, Pakistan International Airline and various other organizations are burden on the government exchequer rather than asset. Business is always a private matter and involvement of the government in business activities only opens the flood gates of corruption and frauds.
The time has come for the present government to take tough stance on the privatization of the state owned enterprises. There may be some disadvantages of the privatization such as it could cause unemployment, but the government should have to get rid of the loss making entities. The expansion of business activities would automatically generate new job opportunities and capital flow in the industry. However, the process of privatizations should be transparent which is very difficult to ensure in this country. At a time when banking industry was flourishing in the country, privatization of banks multiplied not only corruption, but also a kind of financial collapse. Illegal disbursement of loans to unfeasible industrial units under political pressure put the whole economy in crisis. Billions of rupees loans have been written off until now and billion others have gone to oblivion. On the other note, independent private banks have little ratio of bad loans and they extend loans only after taking into consideration all risks. It is unfortunate that a corrupt political and bureaucratic culture prevails in the country which has adversely affected financial as well as industrial sector. Despite the establishment of the institutions such as National Accountability Bureau at the federal level and Anti-Corruption Establishment at the provincial level, it is hard to believe that transparency will be ensured during the selloff of the state owned entities. However, even than the sale of unprofitable state owned enterprises is necessary. At least the process will remove extra burden on the federal budget.
There was time when PIA was an asset and national pride, but now it causes billions of rupees losses to the national exchequer every year. Railway is another entity which needs not only privatization but also a total overhaul. The participation of foreign investors in this sector can change the lot of this nation.
