THE figures shared by Muhammad Ali, Adviser to the Prime Minister on Privatization, during a meeting of the National Assembly’s Standing Committee on Privatization, have once again cast a glaring spotlight on decades of inefficiency, mismanagement and structural decay that define state-owned enterprises (SOEs).
These revelations are far more than dry fiscal data — they lay bare the alarming scale of national resources lost to incompetence and inaction.
Over the past ten years, 23 SOEs have collectively drained a staggering Rs5.5 trillion — more than $19.5 billion — from the national exchequer.
Among these, Pakistan International Airlines (PIA) has alone accounted for Rs700 billion in losses.
These are not just operational deficits.
They represent roads not built, schools not opened, hospitals not staffed and clean water projects not funded.
Had this massive sum been invested in infrastructure and human resource development, the country could have leapt forward economically and socially.
Instead, successive governments allowed these institutions to rot under the weight of corruption, outdated systems and political interference.
Rather than serving as engines of growth, most SOEs became symbols of inefficiency and fiscal irresponsibility.
The urgent need of the hour is a bold and sustained restructuring of these SOEs.
In many cases, this means privatization.
But privatization must not be pursued as a hasty sell-off or a short-term fiscal fix.
It should be a well-planned, transparent and accountable process, focused not just on transferring ownership but on maximizing long-term value for the state and the public.
Strategic investors must be vetted carefully and safeguards must be in place to prevent asset stripping and ensure commitments to performance improvement, job protection and future investment.
It is encouraging to note that there are signs of a nascent turnaround in PIA, one of the most high-profile loss-making SOEs.
This signals that with competent leadership and policy direction, even the most troubled entities can be put on the path to recovery.
It is time to stop the bleeding in other SOEs as well.
We can no longer afford to pour billions into failing enterprises while its development stalls.
The choice is clear: reform or continue down the road of economic self-sabotage.
