History of Privatization in Pakistan
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 partition the public sector consisted only of the railways, telephone and telegraph department, the post offices, the Karachi port, radio Pakistan and some coal and salt mines.
The concept of privatization is not new to the policy make of this country. It may be followed as back as in 50s; When Pakistan Industrial Development Corporation (PIDC) was established in the country in 1952 to boost up the industrial development in the country, which in favor of the privatization.
Privatization in 1958-1969
The private sector policies continued under the region of Marshal Ayub Khan’s government that ruled Pakistan from 1958 to 1969. In this period we saw first expression of privatization as a public policy tool. When some industrial units that included jute, paper and sugar mills that were setup and successfully run by Pakistan Industrial Development Corporation (PIDC) were disinvested to the private sector.
But political and economic fallout of the 1965 and 1971 war was surprisingly well weathered by the private sector and the economy of Pakistan continued to grow and gain to this. The flow of western aid and the rising importance of Pakistan as a major domino in the cold war were important to support the economy and the private sector
“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 partition the public sector consisted only of the railways, telephone and telegraph department, the post offices, the Karachi port, radio Pakistan and some coal and salt mines.
The concept of privatization is not new to the policy make of this country. It may be followed as back as in 50s; When Pakistan Industrial Development Corporation (PIDC) was established in the country in 1952 to boost up the industrial development in the country, which in favor of the privatization.
Privatization in 1958-1969
The private sector policies continued under the region of Marshal Ayub Khan’s government that ruled Pakistan from 1958 to 1969. In this period we saw first expression of privatization as a public policy tool. When some industrial units that included jute, paper and sugar mills that were setup and successfully run by Pakistan Industrial Development Corporation (PIDC) were disinvested to the private sector.
But political and economic fallout of the 1965 and 1971 war was surprisingly well weathered by the private sector and the economy of Pakistan continued to grow and gain to this. The flow of western aid and the rising importance of Pakistan as a major domino in the cold war were important to support the economy and the private sector