ACCELERATING PRIVATISATION PROCESS
May 3 - 16, 2010
Few days back a government supporter was highlighting the benefits of privatising on a local news channel. He stated privatisation would accelerate the development of privatised units.
Other benefits of privatisation include innovative solutions, effective & time bound results, cost cuttings, improvement in quality of work, increase in the productivity, significant growth in the business, and controlled monitoring of public property.
If an organization can get aforesaid benefits from privatisation, then one should think of privatising the government, so that the government's working can become efficient and it can discharge its responsibilities in sound and effective ways. Therefore, when it is a decision about privatising loss-making public sector enterprises, government should first come on the anvil of privatisation.
In developing countries the government is not efficient enough to offer effective good and services.
One measure to solve the problem is to sell public companies to the private sector. The process of selling this companies is crucial because most of the time the new private company is not efficient too.
In the developed countries the government can reach a level of efficiency when the society receives the goods and service and so that there is left no need of selling state-run companies to the private sector.
Privatisation Commission of Pakistan is apparently planning to sell each every assets of the government inconsiderate of its profitability and non-profitability. Theme behind this policy is that the function of the government is not to run business.
Take an example of Pakistan Railways. Its section may be privatised to generate revenues with the help of public-private partnership. This shall also help in improving the infrastructure and standards.
There has been massive corruption during privatisation process in Pakistan. It is very clear that the privatisation process has not been proved as a key to economic development as was claimed by the different governments, but instead a total disaster for the economy of Pakistan.
Privatisation is aimed at reducing the role of the state, and expanding that of the private sector.
Not all the government functions should be privatised. Any proposed area of privatisation must first be evaluated to ensure that the function could be best served privately rather than publicly.
For example, no one would suggest that national defense be privatised.
The government of Pakistan embarks on its continued spree of privatising state-owned enterprises. But the private sector is in not in better conditions itself. It is also in desperate need to have some government assistance to rescue them, to bail them out, as it is called. So who is the government befooling when it says the private sector is in a better position to run the enterprises that are failing under the government watch?
Privatisation in Pakistan is classic example of corrupt politicians and ever-corrupt bureaucrats working in concert to turn a lemon into an orange. This is how they did it.