KARACHI, Nov 15: Temporary part-time executive chairmen have been appointed in the crisis-ridden Wapda and KESC, pending nomination of permanent ones by the government.
Federal secretary for water and power Saeedullah Jan has taken over charge of Wapda and his additional secretary Riaz Ahmed Khan will act as KESC chairman.
Nominations have been held up because of differences on the choice of the candidates and whether men-in-uniform or civilians would be most effective to run the two outfits. Various factions within the coalition government have their own preferences. Both Wapda and KESC suffer from fiscal deficits, but they offer lucrative jobs.
The importance of the two utility companies for the economy cannot be over-emphasized. They are required to provide cheap electricity to enable industries to produce competitive goods for exports. Similarly, the subsidy provided to these inefficient outfits has inflated budget deficits and deprived the government of the resources that could have gone towards developmental spending, poverty reduction and creation of much needed jobs. The IMF and the World Bank have been constantly reminding the government of the need to pull out the two outfits from financial shamble.
The situation is all the more unfortunate because the latest IMF report acknowledges that both Wapda and KESC are now performing according to the financial improvement plans. If a reversal takes place at the cost of the economy because of temporary and part-time hands, it would be because of want of decision on appointment of permanent full-time chief executives.
What is happening to Wapda and KESC is one more example, though a very significant one, of the overall inefficiency of quasi-military set-up. It only confirms a common complaint among businessmen that quick decision-making is lacking. Some others lament that the country has lost its sense of direction. The special interest groups recall fond memories of the three-year military rule. They say that one may differ from their good or bad policies, but the country’s economic managers knew the direction in which they were taking the economy and decisions came quickly.
In the fast changing world, corporate managers are picked on merit so that they can deliver. As specific company culture is the driving force for any firm’s success and failure, the chief executive must be aware of the science of management. He should not only be a good practitioner, but also a “theory builder” as well for his outfit. This is happening in Pakistan as elsewhere. Even in the public sector, Dr Ishrat Husain is a “theory builder” for the State Bank, though there may be differences with his policies and approach.
In corporates, the shareholders are the ultimate decision makers within the national policy framework and the chief executive is accountable to them.
When it comes to managing the country, things change, not for better but for worse. For many rulers around the world, power comes first and economy comes later. This is also largely true for Pakistan.
What is often forgotten is that leadership is context- specific. The strong and able leadership of Winston Churchill brought victory to Britain in the second world war but he lost the elections that followed the war. Simon Atlee of the Labour Party snatched victory at the polls.
In an environment of slow decision making, the country’s economic managers face a big challenge. Helped by the 9/11, they have delivered on macro-economic stability but the issue now is that would they be equal to the task of economic development, poverty reduction and job creation. What is expected of them is quick decision making, effective monitoring efficient execution and prompt delivery. Just lamenting about institutional capacity will not help. They have to improve it. They have to keep pace with a fast changing world.
The quasi-military rule may not be such a good idea. It indicates a stagnant political culture which has stagnating influence on the national economy. The set-up is neither responsible to the parliament nor to the electorate. There is no accountability.
And the type of leadership that is needed has been described by management guru Dave Ulrich: “Future leaders would be known less for title and position and more by their enterprise and competence; less by what they control and more by what they shape.”