Privatization

Society Pakistan & World Affairs
1

Just wondering what are the disadvantages of **PARTIAL PRIVATIZATION **of national industries, such as PIA, Steele Industry, etc?

When i say PARTIAL, I mean we can either sell / lease off partial shares. Give command (temporarily) over to someone else (inside/outside) the country for a limited period of time. We can POSSIBLY still hold majority / equal share (and always have the option of buying back the shares).

What are the cons associated with it (other than it feels unpatriotic)?

2

Re: Privatization

Partial privatisation is a poor idea.

If the government holds a majority of shares, then the business cannot be run as the private sector wants because the government still has veto power.

If control is given for a limited amount of time to the private sector, the private sector has no incentive to invest in the continued long-term success of the business and will fleece it for as much money as possible in the short term before they lose control.