This study investigates importance of privatization, changes in the
performance of organizations after meeting the privatization policy
and overall effects on the growth of economy of the country. It is
described by Farazmand (2001) that privatization has been
rationalized by its advocates, policy makers and international
agencies on various grounds ranging from economic efficiency to
income distribution. It is observed that lot of research has been
done on the performance of privatized entities but this research
analyzes the growth of macroeconomic factors after privatization,
especially in case of large unprofitable state-owned enterprises.
Privatization of state-owned enterprises has been investigated in
this research with a case study of already privatized banking
sector. The theory of privatization has been tested with the
performance of private banks as compared to the public banks using
the profitability ratios. The statistical result obtained from the
profitability ratio show improvement in the performance of banking
sector due to privatization in Pakistan and there is evidence of
growth of the economic indicators especially FDI in the financial
market.
General
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