Fending for the regular folk

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.