Deepening economic woes in Pakistan have governments turning to privatization not as a bold reform, but as a last-ditch effort to mask colossal failures in state-owned companies. Express Tribune’s analysis reveals a vicious cycle: political interference poisons management, losses mount unchecked, and when debt becomes unsustainable, assets are dumped on private hands at rock-bottom rates to avoid total humiliation.
This isn’t unique to one industry. From airlines to power and telecom, the story repeats. Political appointees replace skilled executives, accountability vanishes, and public funds prop up zombies until privatization ‘solves’ the mess. The public absorbs the pain of inefficiency, while buyers reap windfalls from undervalued assets.
PIA exemplifies the tragedy. A former aviation leader, it was crippled by excess staff, meddling ministers, and ignored market realities. Endless bailouts failed to stem the decline in service and competitiveness. Privatization emerged not from strategy, but exhaustion after decades of bungled oversight.
PTCL offers a counterpoint, with privatization sparking operational upgrades and service growth. But lingering disputes over employee pensions and regularization expose systemic shortcuts—transaction over transformation. Human and legal liabilities were sidelined in the rush to privatize.
Consumers hoping for cheaper services? K-Electric proves them wrong. Despite going private, electricity rates have exploded, hitting new peaks. Pakistan’s privatization history underscores a harsh truth: without confronting governance flaws head-on, offloading SOEs merely shifts losses from state balance sheets to citizens’ pockets, perpetuating the economic downward spiral.