Pakistan is a country blessed with natural resources, a young workforce, and a rich cultural heritage. However, when we examine its state-owned institutions, a much darker picture emerges. These institutions, meant to serve the public and uplift the country’s economy, have become synonymous with inefficiency, corruption, and mismanagement. The average Pakistani citizen suffers daily, not just from the high cost of living or lack of opportunities, but from the systematic looting and exploitation by the very institutions that were designed to serve them.
Take the power sector, for instance. Despite paying one of the highest electricity tariffs in the region, Pakistani citizens endure erratic power supply and long hours of load-shedding. Outdated infrastructure, power theft, and poor grid maintenance result in significant line losses, yet no serious efforts are made to address these issues. Instead, the government raises tariffs to cover these losses, pushing the financial burden onto the already struggling citizens. The ever-increasing circular debt, now Rs 2.63 trillion, reflects the inefficiency and corruption prevalent in both public and private power companies. Each year, this debt balloons further, leaving the citizens to foot the bill through taxes and higher energy prices.
Similarly, Pakistan Railways, once a reliable and affordable mode of transportation, is now in ruins. Trains are constantly delayed, accidents are frequent, and the overall quality of service is deplorable. Massive injections of public funds have done little to improve the situation, as corruption and inefficiency reign supreme. Faulty equipment, bribes, and overstaffing are just some of the issues that plague the institution. Train accidents, caused by poor maintenance and outdated tracks, have claimed hundreds of lives over the past decade. Despite this, no real accountability exists, and those responsible for the mismanagement go unpunished.
Then there’s Pakistan International Airlines (PIA), a once-renowned airline now reduced to a national embarrassment. Political interference has decimated the organization, with unqualified individuals being appointed to key positions based on their connections rather than merit. The result is predictable: inefficiency, corruption, and financial losses that run into billions. While the government continues to pump taxpayer money into the failing airline, it remains poorly managed and unreliable. Flights are often delayed or canceled without explanation, and customer service is practically non-existent. Yet, the average Pakistani continues to pay for this sinking ship through taxes and inflated ticket prices.
The situation is just as grim in Pakistan’s health sector. State-run hospitals and healthcare facilities are in shambles, with a lack of medical equipment, poorly trained staff, and inadequate supplies of essential medicines. Corruption is rampant, with many public hospitals demanding bribes for basic services. The wealthier segment of society can afford to seek treatment in private hospitals or even abroad, while the majority of Pakistanis are left to suffer in underfunded and poorly managed state facilities. Even when funds are allocated for healthcare improvements, they often disappear into the pockets of corrupt officials, leaving the system broken and neglected.
Education in Pakistan, particularly in rural areas, is another area where state institutions have failed the people. Many public schools lack proper infrastructure, qualified teachers, and up-to-date materials. Ghost schools—schools that exist only on paper—and teachers who receive salaries without ever showing up to work are widespread issues. These practices are a direct result of unchecked corruption and poor oversight. Meanwhile, private schools flourish, but only for those who can afford them. This growing disparity in education has created an unequal society where the rich receive quality schooling while the poor are left behind. The state’s failure to provide adequate education will have long-term consequences for Pakistan’s future development.
The choice is clear: continue with the current system and watch as state-owned institutions sink deeper into corruption and mismanagement or adopt privatization and create a system that works for the people.
The sad reality is that every major state-owned institution in Pakistan has become a symbol of corruption, inefficiency, and public exploitation. Whether it’s the power sector, railways, airlines, healthcare, or education, these institutions are draining the country’s resources while delivering little in return. They were originally established to serve the public, but they have instead become parasites, enriching a small group of people at the expense of the average citizen.
Privatization is the only solution. It’s clear that these institutions are beyond saving in their current form. The government has neither the will nor the capability to reform them. Political interference, nepotism, and corruption are too deeply embedded. Only by privatizing these institutions can they be freed from the grip of corrupt officials and political cronies. When these sectors are handed over to private companies, there will be a greater emphasis on efficiency, accountability, and customer service.
Take the example of other countries where privatization has transformed struggling state-owned enterprises into profitable, well-functioning companies. In such systems, competition drives improvement, innovation, and better service delivery. When private companies are responsible for their own profits and losses, they cannot afford the kind of inefficiency and corruption that have become the norm in Pakistan’s state-run institutions. Privatization would create an environment where merit is rewarded, and resources are allocated based on need and performance rather than political connections.
Pakistan’s citizens deserve better. They deserve institutions that serve them, not loot them. They deserve reliable electricity, safe and affordable transportation, quality healthcare, and education that equips their children for the future. Privatization offers the best path to achieving these goals. It’s time for Pakistan to break free from the cycle of corruption and inefficiency that has held the country back for so long. The future of the nation depends on it.
One of the benefits of privatization is that some money would come into the state coffers. That should not be the main motive. Anyway, the fate of previous privatization proceeds has been to be wasted on plugging the budget deficit. Instead, the money should be devoted to a fund for some useful purpose, like the proposed Pakistan Sovereign Fund. Above all, national assets must not be given away for peanuts to the cronies or frontment of those in power.
The choice is clear: continue with the current system and watch as state-owned institutions sink deeper into corruption and mismanagement or adopt privatization and create a system that works for the people.
