It seems that the focus on the issue of the privatisation of PIA has shifted more towards an academic debate over the merits vs demerits of privatisation. Looking at the peculiar situation of Pakistan, PIA enjoys almost a monopoly position on domestic routes. When the market is not competitive, creating a private monopoly may harm consumer interests. Therefore, in this case, privatisation might create a private monopoly which could seek to set high prices. It is better to have a public monopoly rather than a private monopoly which can exploit the consumer.
On the other hand, experience has revealed that in government-run industries, the government may be reluctant to get rid of the ‘deadwood’ and surplus staff because of the negative publicity involved in job losses. A private firm is interested in making profits and so it is more likely to cut costs and be efficient. What is needed is to revisit the strategy and method of privatisation.
Dr Najeeb A Khan
Islamabad
I would like to congratulate Dr Ikhtiar Baig on his successful win from NA-241. As a resident of this constituency, I...
When our neighbour’s house was being renovated, one worker had the job of taking a load of bricks to the upper...
It has been around a year since the government established the Special Investment Facilitation Council to attract...
The PML-N has been given another chance to serve the country but does not appear to have learnt any lessons from its...
Over the last decade, there has been a mushroom growth of private housing schemes across the country. No doubt, the...
This letter refers to the news report ‘Punjab cabinet approves Nawaz Kisan Card’ . While it would be all right for...
