Speaking in a candid discussion with VCast Online, Zafar Masud, Chairman of the Pakistan Banks’ Association (PBA), stressed that societal backing for privatization is not just desirable but essential if Pakistan hopes to secure a sustainable economic trajectory for its future generations. He cautioned that continued resistance to necessary reforms will only entrench the very crises that have repeatedly undermined national progress.
Masud’s remarks come at a time when Pakistan faces daunting fiscal and structural challenges, particularly tied to its power sector and broader governance inefficiencies. The country’s recurring circular debt, sluggish state enterprises, and mounting budget pressures have created a fragile economic environment that cannot be stabilized by short-term fixes alone.
During the conversation, Masud pointed out that privatization, if implemented with proper regulatory frameworks and transparency, could bring much-needed efficiency and accountability. This, he argued, would ease the chronic burden on public finances and reduce the dependence on bank-led bailouts that have become all too frequent in recent years.
He also addressed a common misconception that privatization is a purely elite-driven agenda or a foreign demand imposed through lending programs. Instead, Masud framed it as a societal necessity, arguing that without decisive reform and modern governance models, Pakistan risks depriving future generations of economic opportunities and prosperity.
Highlighting the case of the power sector, Masud said public resistance to restructuring and privatization of distribution companies (Discos) continues to stall critical improvements. These inefficiencies feed into the country’s ever-growing circular debt, ultimately constraining resources that could otherwise be directed toward health, education, and digital infrastructure development.
He underscored that banking institutions, while playing their part in stabilizing the financial landscape through historic transactions such as the recent Rs 1.29 trillion deal to manage circular debt, cannot be the perpetual safety net. Masud warned that without broader societal acceptance of difficult but necessary reforms, including privatization, these financial maneuvers would only serve as temporary patches.
Masud’s comments also touched on governance, noting that meaningful privatization is inseparable from regulatory strengthening and digital oversight. He advocated for leveraging technology to monitor compliance, track financial flows, and ensure that privatized entities adhere to service quality and performance standards. In his view, digital transparency can help build public trust, countering the skepticism that often clouds privatization debates.
He further cautioned that delaying these reforms will ultimately come at a much steeper cost. The country could face repeated cycles of debt crises and underinvestment, eroding the very foundations needed for sustainable economic growth. This is especially concerning as Pakistan seeks to position itself within the evolving global digital economy and attract international capital that demands operational and regulatory clarity.
Masud’s conversation with VCast Online served as both a warning and a call to action. It underscored that Pakistan’s economic resilience hinges on collective will — from policymakers to citizens — to embrace change that, while uncomfortable today, promises a more stable and prosperous tomorrow. By aligning public support with well-designed privatization and governance reforms, Pakistan can begin to break out of its cycle of crisis and move toward a future that safeguards opportunity for generations to come.