The Pakistan Government is Universally Less Efficient

Government Higherarcy

The Pakistan government is universally less efficient in running any business. Private ownership is miles ahead in doing the same things better. The problem here is that the government controlled entity when it makes a mistake doesn’t go bankrupt as the funds keep being funneled in by the government, whereas a private firm is put in severe jeopardy when profits are not secured.

Were the question only of a slight difference in efficiency it wouldn’t be a big deal. The real question is about the kind of product that the consumer receives. A government owned entity can be profitable, because of having a monopoly over an essential resource. Pakistani commerce is highly regulated and protectionist in nature. This at times artificially boosts the profits at the expense of the consumer. Ultimately it’s the consumer and the normal people who benefit from this handing off of the control into private hands.

The bureaucracy in the government hierarchy wastes more resources on have management personnel instead of real workers. It’s the delegation of work down the order that is rampant and the cause of such waste.

One would think that private owners are going to be greedy and exploit the consumers. What we are after isn’t to curb the greed of the private owner, but rather to channel that greed into something productive. It happens automatically in a free market, where a shoddy product or service makes the customers go a competitor. This settle the issue for the greedy owner, who now must do something to ensure the customer is not turned away. This serves the customers and brings the prices down while pushing the quality up. This also makes available goods and services that were less available to those who couldn’t afford them earlier.

This is not the case only in Pakistan that the government is universally less efficient. Across the world the same problem exists. The political control of people’s property and resources by a select few has created a situation where innovation is getting stifled because of the power the government. Any dissent or disagreement is increasingly being met with greater interference by the government. A situation like this leads to private owners fleeing with their capital rather than focusing their energies on providing for the needs of the consumer.

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