Nationalization, Denationalization, Privatisation

PIDC:

PIDC was established in order to invest in industries where the private sector did not, for example, fertilizers, textiles, cement, chemicals, paperboard or sugar

When these were established they were transferred to the private sector. The performance of the Private Sector was encouraging, and it brought about the era of industrialization.

All of this happened during the Era of Ayub Khan

Nationalization:

During the era of Zulfiqar Ali Bhutto, the government kept in line with the socialist policies of China and the USSR by Nationalizing industries, 10 major industries were taken by the government

The result was chaotic as the government could not handle all these new industries. As a result, foreign investment declined sharply

Nationalization means immediately taking over the industries. There is no private sector, the government owns everything

Denationalization:

It was brought in the Era of Zia-ul-Haq. The nationalized industries were given back to their former owners.

Denationalization can bring polarization of wealth

Privatization:

The privatization of state-owned enterprises was done in the era of Nawaz Sharif. An example of privatization is electricity in Karachi

In privatisation, the companies which should be run by the state are given to private investors. Nationalization is when a private company is taken over by the government, while privatisation is when a government-run industry is given to private owners

Why Privatisation:

Better opportunities, expansion and modernization of the industries, improved productivity and profit. I reduces the burden on the government and creates opportunities for the private sector. Rapid industrialization can be achieved

Notes by Miss Maliha Ghazanfar (2022), compiled by Rayyan Jamil Khan of Class X-T Karachi Grammar School - College Section