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Shortages of Necessary Items and
Privatization Policy
Under World Bank and IMF
pressure, government of Pakistan started privatization policy in
early 90s. This policy continued throughout 90s and later until
Supreme Court of Pakistan nullified several privatization deals
due to grave unscrupulous conditions during last days of
Musharraf regime. By the time, Supreme Court of Pakistan acted,
the major damage was done to Pakistani economy under
privatization policy.
Today, when we see various
broken systems, shortage of supplies of items of basic
necessities of life in the market, we fail to point out why as a
nation we are facing this music. Surprisingly no body is making
its connection with the privatization policy whereas the fact of
the matter is privatization policy is the key reason for all
these broken systems and economic failures.
Understanding the nature and
extent of damages done by privatization policy is little
complicated matter and beyond the comprehension of our economic
managers, because the extent of our financial stupidity does not
even allow us to understand simple things like we borrow money
from IMF and World Bank and proudly announce that our foreign
exchange reserves have risen to 14 billion from 12 billion.
Is raising liabilities a matter
one should be proud of? Sure, if one does not intend to pay this
money back, but if one has to pay it through his nose what is it
to be proud of?
Coming back to the privatization
policy and current economic fiascos, our economic managers must
understand, in third world countries' unregulated economies
where businessmen and manufacturers enjoy unlimited power over
market forces, governments must maintain pressure on these
manufacturers by staying involved in production process of items
of fundamental necessities of life.
As long as government owned
electricity, cement, oil, sugar and flour mills, not only the
government kept private manufacturers under control through fair
competition, the people of Pakistan also had more consistent
supplies of items of basic necessities of life in the market and
they purchased these commodities at reasonable prices.
Privatization policy damaged
government control over manufacturing process. It eliminated a
powerful competition of these manufacturers from the market,
which on one hand gave these manufacturers a free hand over
consumers and on the other, the people of Pakistan constantly
faced the crisis of shortage of these items. Whereas for
government, these pure economic matters are turning into a law
and order issues.
Since third world countries do
not have perfect government management systems, and Pakistan is
no exception, for these governments hundred percent
privatization policies is nothing but a serious catastrophic
strategy.
After several reoccurring
shortage crisis of these items of basic necessities, the
government must end its privatization policy in electricity,
cement, edible oil, sugar and flour manufacturing. Without
reversing this policy and without government’s direct investment
in these sectors, the people will continue facing these crises
of shortages of these items of basic necessities of life and
consecutive governments will not only face serious criticism
they may crumble due to such shortages.
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