Call to improve governance in public sector enterprises

LAHORE

Privatisation of PIA or other public sector enterprises is tantamount to selling the country. The better solution to the problem is to improve governance in such institutions by involving all stakeholders. 

These views were expressed by the experts at Jang Economic Session on ‘Revival or Privatisation of public sector enterprises - what should be the priority?’ here on Wednesday. The panelists were Iftikhar-ul-Haq, Aima Mehmood, Farooq Tariq and Javeed Qureshi while the session was hosted by Sikindar Lodhi.

Iftikhar-ul-Haq said performance of public sector enterprises depended on good governance. 

“If good and unbiased governance exists in the country then all the institutions will perform well.

Governance system remained weak which affected all the institutions and created negative image. If private sector gives better returns, the economy can grow and governance could not be improved when merit is violated.

Institutions could not be improved without good governance while regulatory authorities should also play their active role,” Iftikhar-ul-Haq said. 

Aima Mehmood said privatisation had never been 100 per cent successful in Pakistan while 90 per cent factories and institutions had closed after privatisation, increasing unemployment and ending right of unions.

“Privatisation neither reduces government deficit nor improves the performance of public sector institutions and economy.

The government should learn from the past experiences and introduce effective reforms in these institutions,” she said. 

Economy faces losses due to mismanagement and incompetence in these institutions, but not due to strikes against privatisation, she said. 

Farooq Tariq said: “Provision of basic facilities and employment is responsibility of the state.

Privatisation affects labour class and the economy. Basic service providing institutions should not be privatised.

Remarkable benefits were not achieved from privatisation of PTCL and other public sector enterprises in the past. The government should talk with joint action committee. 

Javeed Qureshi said: “Privatisation damages economy. PIA is the country’s identity and it should not be closed through privatisation. Its performance should be improved.

Better performance and good governance in public sector enterprises is necessary. Privatisation of PIA should be transparent if it is inevitable.”