Corporate lawlessness

Pakistan's corporate culture needs to be reformed, in terms of accountability of management, and payment of taxes. Private sector companies and multi-nationals are motivated by profitability and fierce competition.
The board of directors have a direct stake, and any bad decision is liable to affect their investments.
Unfortunately this is not the situation in government-owned semi-autonomous corporations. The tax payers, who have a stake, have no role. The government at best can be defined as a custodian and therefore cannot be seen as having absolute powers of decision-making.
This power vests in a legitimate democratic government, which is accountable to an elected assembly. The powers of semi-autonomous corporations' CEOs, therefore has to be limited within defined corridors and regulated by a powerful regulatory body.
These organisations have been and continue to be a tool in the hands of various regimes to satisfy their constituencies.
Since the CEO is appointed by the sitting government, they are responsible for all his deeds. A non-professional CEO tends to hold the view that professionally qualified men and women from universities are not a pre-requisite for a good manager. Such outdated notions continue to be in vogue and are manifested by various appointments made in PIA, WAPDA, Railways, KESC etc.
Multinationals all over the world recruit talented and qualified men, graduating from prestigious universities all over the world. These men and women are trained and dominate decision-making corridors of these profitable organisations.
In Pakistan on the other hand these appointments are made on the recommendations of sitting governments or on the personal whims of the CEO. Such abuse of power was not confined to the two civil governments alone, but is rampant also today. What we see happening in PIA today is because of the incompetence and indiscipline of its management.
The Federal Government has pumped in billions of dollars and yet the so-called turn around was a hoax, when we gauge the value of PIA's shares.
The tax-payers money is at stake. The nominated board of directors should be held accountable for all the losses incurred as a consequence of any decision. The CEO should abide by the rules and regulations that govern recruitment, appointments, foreign postings and executive assignments.
Matters like seniority and basic educational qualifications, should not be within the discretionary powers of a management.
International practices by major organisations in the developed world should be followed, instead of our home brewed concoction, which has failed miserably and is responsible for our corporate mess.
The corporate culture of Pakistan needs a surgical revamping. Prime Minister Shaukat Aziz can and should contribute, because of his vast experience in the corporate world.