STATE OWNED ENTERPRISES AND PRIVATE FIRMS IN A COMPETITIVE ENVIRONMENT: A CASE OF PAKISTAN

Abstract

This study is about the impact of privatization on the state owned corporations in
Pakistan. The data set includes a four years before and after measures for operating
efficiency. Profitability, output, capital investment and leverage are used as measures
for efficiency. The Wilcoxon Z test is used for the comparison of variables before and
after the privatization process in Pakistan. The data is selected from various major
sectors like cement, oil and gas, banks and financial sector, chemical and auto. The
study revealed that no significant financial and operating improvements were exhibited
after privatization of these state owned enterprises.