The aim of privatisation is to make loss-making enterprises and utility corporations efficient, self-sustaining and profitable. However, the policy is subject to some very important conditions. First, the reasons these companies incur losses have to be determined. Is it a perennial problem or is it a recent phenomenon? Were these corporations profitable? If the answer is yes, then can they be turned around by better management? Is the privatisation process transparent? Above all, is privatisation being done by keeping national policy objectives supreme or are there personal agendas involved?
These are some of the most crucial questions to be answered. We know that organisations like PIA and the Pakistan Steel Mills had been profitable and efficient once. Most public sector organisations have been ruined mainly by bad management, politicisation and excessive recruitments. There is no reason why they cannot be turned around once again by better management.