Privatising Principles

It is a tale as old as time. Valuables are taken to the pawnbroker for quick cash, only for their owners to discover later that they have surrendered something worth considerably more. By then, regret offers little recourse. Pakistan must remember this danger as it pursues its otherwise commendable privatisation drive. Finance Minister Muhammad Aurangzeb plans to privatise another five or six state-owned entities this fiscal year, potentially raising more than $1 billion. Following PIA’s sale, power distribution companies and airport operations are among those under consideration. Dar urges Kabul to take verifiable action against TTP, warns of regional security threats Much of this is welcome. State-owned enterprises have long suffered from political patronage, inefficiency and financial mismanagement. Private operators can cut through bureaucratic obstacles and introduce commercial discipline where successive governments have failed. The revenue generated and efficiencies gained are both worthwhile objectives. Yet privatisation must not become an indiscriminate liquidation of national assets. Vital industries, infrastructure networks and essential services are not merely commercial holdings. They can also be instruments of national authority, economic security and governance. Surrendering too much control risks weakening the state’s ability to exercise its writ, potentially at a cost far exceeding any immediate financial gain. President receives credentials from Ambassadors of Norway, Azerbaijan and Switzerland The distinction between what the government should operate, what it should regulate and what it must retain is therefore crucial. Private management need not mean surrendering strategic oversight. Pakistan needs a more efficient economy, but it also needs a state capable of safeguarding essential national interests. The temptation to plug immediate fiscal gaps must not override the demands of long-term sovereignty and accountability. There is a fine line between prudent reform and selling the family silver to pay tomorrow’s bills. One hopes the finance minister finds it. Asim Iftikhar assumes charge as Foreign Secretary, calls on Ishaq Dar

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