Can You Explain The Advantages And Objectives Of Privatization?


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Haider Imtiaz Profile
Haider Imtiaz answered
1. Improve performance: The main aim of privatization is to improve the performance of the banks. When ownership is in private hands, they work for profit and try to improve the performance.
2. Promote competition: Due to lack of competition, the banks were not attending to the services they provide to depositors. The purpose of privatization of banks is to promote competition.
3. Reduce burden of government: The most important factor of privatization is that these banks had been an extra burden on government. The privatization of banks reduces the burden of the government. It is in the interest of the country to sell banking business to private persons.

4. Increase the process of industrialization: The sale of banking business to private owners is helpful in increasing the process of industrialization because the banks extend credit for setting up industrial unit in different parts of the country.
5. Promote capital market: When the shares of privatized banks are soled to general public, the capital market become strong due to increase in number of shares in stock market.

6. Service motives: Due to the nationalization, the service motive was decreased instead of increasing. Workers do not care for any depositor. The purpose of privatization was to increase the service motive.
7. Economic growth: Privatization will promote credit creation which will be helpful in rapid economic growth of Pakistan.
Anonymous Profile
Anonymous answered
Routes of privatization

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