The extent of financial misconduct and poor management at state-owned businesses, together with the associated expenses that fall on the exchequer, hurt more than anything else at a time when the majority of people are fighting to put two good meals on the table. Privatization Minister Abdul Aleem Khan disclosed that PIA’s losses have now skyrocketed to Rs830bn, or almost $3bn, during a speech on Sunday at an exhibition in Lahore. The airline, which was once Pakistan’s pride and glory, has recently suffered financial losses so great that it is mind-boggling to attempt and put them into context. According to recent estimates, the national flag airline has been losing almost Rs13 billion per month. That means that for every minute that its privatization is postponed, PIA loses enough money to feed a typical Pakistani household for a week. Moreover, the losses that the airline incurs could be used to pay for the monthly stipend that 30 families receive under the Benazir Income Support Programme.
With officials admitting that its industrial assets are “worthless in the current era,” another SOE that was equally representative of egregious mismanagement and misconduct is now officially regarded as “a piece of scrap.” A few weeks ago, Pakistan Steel Mills’ real estate assets are being divided, and the company stopped its gas supply at the end of June in order to prevent further losses, according to information provided to the National Assembly Standing Committee on Industries and Production. It appears that all that’s left for the vultures to feast on is bones following years of fruitless attempts to turn the PSM around. The entity has turned into a terrible representation of what occurs when wise choices are not carried out in a timely manner. In light of this, it is hoped that the PIA privatization proceeds as planned and that a new, capable management team with a clear vision would make excellent use of the organization’s resources, assuming any remain.
