THE caretaker government is gearing up to issue an ordinance aimed at preventing high courts from entertaining cases related to the privatization of national assets. This decision comes on the heels of the Lahore High Court issuing notices to the government in response to a petition challenging the proposed privatization of Pakistan International Airlines (PIA).
There is no denying the privatization of state-owned enterprises (SOEs have faced numerous obstacles, including staunch opposition from political parties and objections raised by different unions regarding the selection of entities for privatization. Legal delays and litigations further compounded the issue, causing potential investors to approach the process with caution. Consequently, many SOEs have transformed into financial burdens, requiring regular bailouts from the federal government. With a majority of SOEs beyond the point of feasible reforms, expediting the privatization process becomes imperative for Pakistan’s economic health. These entities, once assets to the nation, have become white elephants draining public finances. Fast-tracking privatization not only alleviates the burden on the government but also injects efficiency and competitiveness into these enterprises by bringing in private sector management practices. While the need for swift privatization is apparent, it is equally crucial to ensure transparency throughout the process. The government must conduct privatization in a manner that is beyond reproach, leaving no room for accusations of corruption or impropriety. A transparent approach will not only build investor confidence but also mitigate public concerns about the fairness of the privatization process. Then interests of those currently employed in the SOEs slated for privatization must also be protected. Measures should be implemented to ensure that no employee is unfairly laid off, and their rights and benefits are protected during and after the transition. This not only fosters social responsibility but also prevents potential backlash against the privatization initiative. The establishment of the Special Investment Facilitation (SIFC) was a positive step towards attracting investment. However, its focus should remain on encouraging investment in new industries rather than merely facilitating the sale of existing entities. By attracting investment in new sectors, we can diversify its economy, stimulate growth and create additional employment opportunities.
