PAKISTAN Telecommunication Company Limited (PTCL) has reportedly been pressuring its subscribers to purchase its internet service, warning that they may lose their landline connection if they refuse. Such practices highlight the darker side of privatisation in the country.

Instead of fostering competition, privatisation can sometimes lead to mono-polistic behaviour, allowing private entities to exploit consumers who have limited alternatives.

It is also worth recalling that K-Electric (KE) was privatised more than two decades ago due to mounting losses that required heavy government subsidies. Even after privatisation, the utility continues to receive billions of rupees in subsidies each year, failing to deliver and, in fact, creating more problems for consumers.

Similarly, private power plants in the country have been criticised for receiving substantial payments even when they are not operational, owing to flawed agreements. Unsurprisingly, electricity tariffs in Pakistan rank among the highest in the region. After the privatisation of Pakistan International Airlines (PIA), there are growing concerns that air travel may become more expensive for Pakistanis.

Privatisation can only succeed when executed with genuine intent, free from vested interests, and supported by a strong, independent regulatory framework.

Unfortunately, regulatory bodies in Pakistan are weak, and tend to operate as extensions of government departments rather than autonomous institutions.

Arif Majeed
Karachi

Published in Dawn, April 15th, 2026