Pakistan Industrial and Traders Association Front (Piaf) has urged the federal government to immediately privatise the state owned enterprises running in losses so that financial burden on the exchequer could be lessened. The Chairman of Piaf, Malik Tahir Javed told Business Recorder that merely changing the board of directors or chairman could not yield positive results.
It needs a total revamping by getting rid of overstaffing, mismanagement and other issues that have trapped the national flag carrier into financial crisis, he said. The government's frequent interference in the professional and managerial affairs is another reason for adding worries to the national airline, he maintained. Malik Tahir Javed further said that frequent bailout packages to such organisations are not a proper solution of the problem. The government has to face a burden of over Rs 600 billion annually on account of financial support of loss incurring enterprises.
Despite consuming a lot of money, these organisations have not yet achieved sustainability and running in losses. "If these organisations are immediately privatised, the government would have substantial amount of funds to spend on infrastructure development and welfare projects," he added. Currently, the government attention needed towards improving law and order situation, resolution of energy issue, development of infrastructure, and initiation of public welfare schemes. Since, the government borrowing is fast rising and thus resulting in high inflation, the policy makers should evolve a comprehensive and concrete strategy to bring the country out of crisis, he said.
The Piaf Chairman also urged the Prime Minister to commence consultation process and take the business community on board for the purpose. It would help develop a consensus which would enable the government to focus on much needed health and education sector, he maintained.