THE Federal Cabinet, meeting under the chairmanship of Prime Minister Gilani on Wednesday, decided to bring changes in the structure of eight public sector enterprises for the purpose of ensuring good governance and fiscal discipline and this is exactly what is needed at the moment. This could prove to be a vital step in checking the sorry state of affairs in PIA, Pakistan Steel Mills, PEPCO, Pakistan Railways, Utility Stores Corporations and other organisations. The plan was conceived by outgoing Finance Minister Shaukat Tarin last year, who maintained that Rs 200-250 billion could be saved if these departments were organised along modern lines and made to work in a corruption-free atmosphere. If the government really intends to turn the tables, it is mandatory that along with transparency, professional and honest managers are put in the saddle in these organisations. Presently, for instance, the PSM has become an ill-piloted wreck, incurring huge financial losses as well as providing an example of the state entity, which has become notorious for corruption owing to the practice of appointing cronies and professionally incompetent staff. The dilapidated condition of our railway network, likewise, beggars description. More or less, same is the case with the rest of the enterprises, which needs specialists, besides a robust system of checks and balances in order to function properly. It is good to know that though the Federal Cabinet will also be setting up a Board of Directors in each of the organisations it intends to restructure, it is compulsory that the appointments should be made strictly on merit. Given the potential of the private sector, it would be worth the effort to tap the human capital it has to offer. The scourge of bad governance is one of the daunting issues we face today. The PPP-led set-up should prove that it has got what it takes to reform these institutions, not just by ridding them of corruption but also by making them truly useful for the public and profitable.