In a significant development on Wednesday, Prime Minister Shehbaz Sharif’s privatisation initiative encountered its first hurdle as key ally Pakistan Peoples Party (PPP) voiced opposition to the plan. The PPP proposed an alternative strategy, advocating for public-private partnerships (PPPs) to rejuvenate struggling public enterprises like Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM), rather than outright privatisation.
PPP Chairman Bilawal Bhutto-Zardari expressed these sentiments during a gathering at the Karachi Arts Council on World Labour Day, organised by the People’s Labor Bureau (PLB). Bilawal emphasised the success of PPP projects in Sindh under the PPP-led provincial government, citing them as examples of effective collaboration between the public and private sectors.
“We propose public-private partnerships as a viable alternative to the federal government’s privatisation plans,” stated Bilawal. He pledged to engage with Islamabad to advocate for this approach, underlining the importance of Sindh’s input in decisions regarding institutions located within the province.
Referring specifically to Pakistan Steel Mills, Bilawal highlighted the Sindh government’s ownership of the institution’s land and stressed the need for provincial consent in decision-making processes. He suggested that if the federal government no longer wishes to operate PSM, the Sindh government stands ready to acquire it and implement a public-private partnership model for its revival.
Bilawal’s remarks underscored the PPP’s commitment to prioritising the welfare of the working class, indicating that salary increases would be a key focus in the forthcoming budget. He expressed confidence in the PPP-led provincial governments in Sindh and Balochistan to address this issue and pledged to engage with the federal government to ensure similar initiatives at the national level.
The PPP’s stance presents a challenge to Prime Minister Shehbaz’s privatisation agenda, highlighting differing approaches to economic reform within the ruling coalition. The debate between privatisation and public-private partnerships is likely to shape future policies regarding the management of state-owned enterprises in Pakistan.