Incorporation of Privatization Commission of Pakistan and the Impact of Privatization of SOEs on the Economic Conditions of Pakistan

Abstract

Privatization is an initiative or process in which the selling-off of the state owned enterprises (SOEs) occurs. This process can also be seen when the government of a certain country contract outs the state services. Pakistan, as one of the developing country in the world enjoys a specific status due to its geographical locations, does not stand as a nation that participates unduly in privatizing the government assets. Today, despite the government's urge, some unforeseen circumstances and incidents that happen in Pakistan are not to attract the foreign direct investment from the investors, who desire to invest in SOEs. The aim of this research is to explain the impact of the incorporation of Privatization commission of Pakistan and the impact of selling-off of SOEs on the economic growth of the country and on other macroeconomic indicators. The data has been collected from different articles and from the government released statistics keeping in view the reviews of international organization such as World Bank and International Monetary Fund (IMF), catering the time period from 1991 to 2018. The figures of revenue from the sale of SOEs in different time periods are taken from the annual report of 2018 from the ministry of Privatization and could be relied upon. The research study has found a consistent rise, over the period of time, in rate of GDP, while the floats of privatization remained unsteady.