The government should have evolved a feasible and transparent strategy for the privatisation of the PIA. Further, as suggested by IMF’s resident representative in Pakistan, it should have first created a national consensus on the issue through talks with the opposition and negotiations with the PIA union. It could have offered incentives like golden hand shake which would have made the surplus PIA employees swallow what they considered a bitter bill. The government, however, did the opposite. It gave the IMF not only an undertaking but also a cut-off date for the disposal of PIA before settling the matter with the opposition and the trade union. The Prime Minister resorted to his usual working style characterised by opaqueness.
Thanks PML-N government’s penchant for secretiveness, it has a full scale crisis has blown up right in its face which could have been avoided. What is more, it appears that the crisis will take time to subside. Meanwhile, the government has decided to defer PIA’s privatisation by six months. There is a widespread perception that the only way to get rid of the financial haemorrhage caused by some of the white elephants, like the PIA and Pakistan Steel Mills, is to privatise both. The government however needs to ensure that they fetch a reasonable price. In the case of the PIA, it should use the period at its disposal to get rid of the large number of superfluous and incompetent cronies appointed by successive governments, including the present one. It should also take other measures to bring down the losses and to make the PIA more efficient. This would make it an attractive proposition for the investors. The process of privatisation also needs to be thoroughly transparent. Among other things this would help dispel rumours that the government is planning to sell shares of the national flag carrier at a throw away price to certain investors from the UAE through a close confidante of the Prime Minister.
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