ABSTRACT
As elsewhere, privatization has become the cornerstone of the economic reforms programme in Pakistan. The avowed objectives of the policy are: to reduce the fiscal deficit partly by reducing the drain on government resources caused by the persistent losses of public enterprises; to achieve more efficient production and greater employment; to promote saving and investment, especially foreign private investment; and to broaden the base of ownership of assets. Due to privatization, the rent-seeking activities of the government are expected to be replaced by the profit-maximizing activities of the private investor. In the end, the government’s ownership and management of assets should remain confined to areas which are strategic to the interest of the state, or to areas where private and social profitability diverge – e.g. the development of physical and social infrastructures, education, health, etc.
