AS the government prepares for crucial discussions with the International Monetary Fund (IMF) to secure much-needed bailout package, the spotlight is once again on the imperative of privatisation for economic stability. Finance Minister Muhammad Aurangzeb’s assertion at the pre-budget conference 2024-25 in Lahore underscores the significance of this strategy in the current economic landscape.
Privatisation has emerged as a focal point of the Prime Minister Shehbaz Sharif-led government’s agenda, aimed at alleviating the burden on the national exchequer and addressing the pressing financial challenges confronting the nation. Central to this discourse is the recognition that it is not the government’s role to engage in business ventures. Rather, the government’s duty lies in providing an enabling environment for businesses to thrive. Privatisation aligns with this principle by transferring the ownership and management of enterprises from the public to the private sector, fostering efficiency, innovation and competitiveness. However, past experiences with privatisation in our country have been fraught with challenges, primarily stemming from political interference and opaque processes. The lamentable fate of vital assets such as Pakistan Steel Mills and Pakistan International Airlines (PIA), mired in financial mismanagement and inefficiency, stands as a stark reminder of the perils of politicising economic decisions. The potential benefits of privatisation are manifold. By divesting loss-making entities to the private sector, there exists a genuine opportunity to transform them into profitable ventures, thereby relieving the strain on the national exchequer. Moreover, the infusion of private capital and expertise can rejuvenate dormant industries, creating new avenues for job creation. It is paramount that the entire privatisation process is conducted with the utmost transparency and integrity. This not only safeguards against accusations of impropriety but also ensures that the interests of the nation are upheld. By adhering to transparent procedures and robust regulatory frameworks, we can instil confidence in investors and stakeholders alike, thereby maximizing the benefits to the national exchequer.
