Posted on February 10, 2011
Filed Under >Adil Najam, Economy & Development, Law & Justice
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25 responses to “Devising a Growth Strategy for Pakistan (3): What Would You Do With PIA?”

  1. Salman Javed says:

    Privatise it for up to 51% and let the government keep the rest. With the private having the controlling share they will work for profits. The only trouble is there might me people losing jobs. Which in all fairness I think is needed to a certain extent. Also, perks for the employees will have to be slashed, no more free tickets, etc. The perks are mind blowing I dont know any airline in europe offering that many and so exotic.

  2. nhmukhtar says:

    Privatize. The government has failed to turn this loss-making enterprise around; let the private sector have a shot.

  3. Asad Mansoor says:

    PIA should be shutdown now as it no more “great people to fly with” it is not a honor to fly with. She is just a white elephant now. It is just snatching money from its natives only as compared to other air line’s facilities

  4. Some comments from the ATP Facebook page:

    – “PIA has been the hatchery for some of the world top class airlines (EMIRATES, ETIHAD etc)! And now the hatchery itself has more hens, cocks and doodles then it needs!! All I can do for PIA now is PRAY!”
    – “The PIA called the mother of airlines and now what our people trying to do with PIA??? Who is behind all this??? never understand the people of Pakistan…………”
    – “just i can do pray for PIA.because in Pakistan day by day problems are increasing ,,”
    – “I think a certain BREAK DOWN IN COMMUNICATION might be behind all the mess at PIA. PIA should be managed like a proper corporation and not a charity organisation that hires for the sake of hiring,for instance.”

  5. banjara286 says:

    conceivably, privatization could offer one way out, but it is a dicey affair in a political set up such as ours.

    in order for any privatized organization to turn the corner and become profitable, the new management would have to drastically cut the number of useless employees and hire fewer more competent professionals instead. understanding why this must be so brings us face to face with the real reasons for why these organizations turn into white elephants and become financial disasters.

    the biggest single reason why this bloated over staffing happens is political patronage. crown corporations (like pia) are used by the governments of the day to grant massive political favors (in the form of unnecessary jobs) to their supporters irrespective of their ability (any kind of a job) or the needs of the organization. i honestly believe that not only pia, but pakistan railways, steel mills, wapda and any number of other public corporations under govt control, have at least three times the number of employees than are actually needed to run them profitably.

    this real problem of political patronage will not disappear by somehow trying to find a magic solution for pia. the rot prevades through and through, and a massive overhaul of the political culture is necessary.

    however, for political parties to privatize means taking a major hit in support from their vote banks, not to mention the street violence that any efforts to streamline the corporations generate. we saw this happen recently when kesc cut down staff, and it is now happening much more forcefully with the pia saga.

    next to no taxation revenue plus bloated payrolls in the public sector is a sure fire recipe for disaster, don’t u think?