Promises of prosperity often mask a chain of dependency. Across countries and through time, governments have insisted that their policies are designed to serve the common man. From the most advanced economies to the developing world, this narrative is persistent, and Pakistan is no exception.

Governments primarily generate revenue through taxation and borrowing. As such, their objectives should be twofold: to provide essential services and to invest in projects that expand the future tax base, reducing reliance on debt. Unfortunately, Pakistan’s public sector has not succeeded in both respects. The case of state-owned enterprises (SOEs) illustrates this dysfunction well. These entities were envisioned to serve the nation but have become financial black holes. Over the past decade alone, losses from SOEs have crossed Rs1 trillion.

The Pakistan International Airlines (PIA) continues to operate under a staggering financial deficit, a burden that weighs heavily on the national exchequer. It is severely overstaffed — largely due to political pressures that obstruct necessary reforms — but it is also paralysed by a systemic aversion to risk. With no incentive to make a profit and jobs being needlessly protected, innovation is stifled, and with a decision-making process designed to avoid responsibility, choices are either indefinitely delayed or doomed from the outset.

Over the past decade, PIA alone has incurred losses amounting to nearly Rs1tr, which is roughly Rs140 million, for each of its 7,000 employees. No government in the last few decades has come........

© Dawn Business