Proposing an Enhanced Process Model of Privatization Mechanism in Pakistan

Abstract

On the commencement of privatization reforms in Pakistan, the researchers reviled the negative impacts of privatization on the economy. The main problem is that the privatization reforms could not project results at an optimum level. Thus, this study aims at exploring the shortcomings of the existing privatization process. For this purpose the researcher investigated the implementation of the privatization process. The researcher adapted four parts of the privatization process from the literature. These parts included (1) The factors from privatization policy strategy, (2) Buyer’s selection process, (3) Assets’ evaluation, and (4) factors that affect development in the post-privatization period. The data was collected by conducting structured and non-structured interviews with concerned people. N-Vivo software was used for the thematic analysis. For the identification of factors, the researcher generated words clouds and then finalized the themes in the form of the segmented nodes from the entire data. These nodes were used for making word tree analysis. The study concluded that there is a need to re-engineer the process for ensuring the desired results. The buyer’s selection process failed to select appropriate people for running the business successfully in the post-privatization period. The buyer’s operational and professional ability was ignored. Evaluation of assets was not in line with the improvement in the post-privatization period. Development in post-privatization was not found in the post-privatization period in most of the cases. For development in the post privatization period, it is necessary to keep follow-up mechanism but no follow-up mechanism for measuring the development in the post-privatization period. In some cases, te privatization commission failed to collect the agreed price after divestment of business. The findings of this study will help the policy makers for making and setting up appropriate strategies for privatization, buyer’s selection and assets’ evaluation. This study also opens a new corridor for researcher and scholars for conducting the research for exploring more factors for improvement in the privatization process.