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should pakistan privatized its state owned enterprises

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should pakistan privatized its state owned enterprises
Introduction:
PRIVATISATION is a process of transfer of ownership of property or business from a government to a private entity. Privatization is not a new phenomenon in Pakistan. Since 1990, Pakistan sold off 167 state-owned enterprises (SOEs) at a price of Rs476 billion. The first phase of privatization in 1992-96 included partial privatization of banks; this was followed by the second phase (1997-2000), resulting in the complete denationalization of the banking sector. And the last phase of privatization from 2001 till 2008 selling off non-banking sectors.
Currently, the government has selected sectors for the new phase of privatization policy 2013 are PIA, Pakistan Steel Mills (PSM) and public-sector power projects, including Pakistan Transmission and Dispatch Company (PTDC). Government sources suggest that more than 23 loss-making companies will go under the privatization in order to support a struggling economy.

Establishment of Privatization commission:
It is established under ordinance of 2000 by the president of Pakistan. The Commission is governed by a nine (09) member Board with Minister for Privatization as Chairman. The board is independent and is denominated by member of private sector.
The private commission performs following functions;
Recommendation of privatization policy guidelines to the Cabinet;
Preparation of privatization programme;
Planning, managing, implementing and controlling the privatization programme, approved by the Cabinet;
Taking operational decisions on matters, i.e. Restructuring, deregulation and regulatory issues.
Privatization Policy of Pakistan:
The privatization policy of Pakistan was based on the following principles:
1. Privatization will be conducted to provide benefit to all, not to give advantage to few.

2. Privatization should make local industries and services more efficient and competitive.

3. The whole procedures of privatization should be transparent and it should free from


References: Fatima.M (1996). Privatization in Pakistan-I. Pakistan & Gulf Economist. 15(5): 35-37 GOP Pakistan Labor Gazette (1995). Report of July 1994 to June 1995, Ministry of Labor, Government of Pakistan. ILO (1996). Pakistan Privatization, Employment, Retraining and Social Protection. A Report Prepared by ILO Seat under UNDP Technical Support, ILO Geneva. Annual Reports Privatization Commission of Pakistan 2000, 2001, 2002. Asian Development Bank, Impact Analysis of Privatization in Pakistan, October, 1998. Economic Survey 2001-02, Government of Pakistan, Islamabad. Annual Report of the State Bank of Pakistan, 2002.
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