History of Privatization in Pakistan

1751 Words Jul 1st, 2012 8 Pages
History of Privatization in Pakistan
“Privatization is the act of reducing the role of government or incoming the role of private sector, in an activity or in the ownership of assets.”
The policy of privatization has been used for improving the efficiency and profitability of improving enterprises, which are not performing well. The privatization of government owned enterprises is now a days a large-sale process for the transfer of state owned enterprises to the private sector. Privatization use as an instrument for development of the industrial sector in developing countries and throughout the world.
Privatization in 1947-1958
Pakistan founded in 1947 with the historical traditions of a free and competitive private sector. At the time of
…show more content…
The private sector was further encouraged by the introduction of fiscal incentive in 1982-1983, such as tax holidays and rebates in custom duty. The sixth five year plan (1983-1988) specifically adopted privatization as a central theme.
Privatization in 1988-1990
In the first term of Benazir Bhutto’s Government in April 1989, with four months of coming into power, Benazir government employed N.M Rothschild and sons for the study of privatization strategy and selection of suitable projects for privatization. The advisor, who submitted report on 22nd May, 1989 suggested a strategy of widespread ownership and identified 14 units for privatization.
These units were Muslim Commercial Bank, Habib Bank, Pakistan International Airline, Pakistan State Oil, and Sui Northern Gas Pipeline, Sui Southern, Pakistan National Shipping, Pak-Saudi Fertilizer, National Refinery, Pak-Suzuki Motors, Gharibwal Cement, Al-Ghazi Tractor, Millat Tractors and Mustehkam Cement.
But Benazir could not privatize the Sui Southern Gas Company. So the proposal to privatize Sui Southern was dropped and it was decided that 10% shares of PIA, 30-40% shares of Pak-Saudi Fertilizer and 60% shares of Muslim Commercial Bank will be privatized. But the government could not complete the proposed plan and only 10% shares of Pakistan International Airline were disinvested before the government of Benazir Bhutto was

More about History of Privatization in Pakistan

Open Document