Privatization alongside globalization has created an immense amount of problems to developed countries and more so to developing countries; whereby citizens have paid the expense of high profits by elites. Non-governmental organizations such as the IMF and World Bank have insisted privatizing state owned enterprises in developing countries, rather than helping poor countries to modernize and strengthen public services. Structural Adjustment Policies (SAPs) put forward by IMF and World Bank have been widely criticised for its economic failures, which have displaced millions into poverty with harsh economic reforms- mainly involving privatization. Despite the evident failures of SAPs the IMF and World Bank proclaims it’s “success”.
Despite the ongoing failure of promoting privatization globally, the Pakistani government has recently made it an agenda to endorse privatisation through the country. In Pakistan, privatization began with the conditionalities that the IMF and World Bank had set up in accordance to awarded loans. Currently 31 profitable enterprises such as, oil and gas, banking, real estate worth billions of dollars has been up for sale in the name of privatization under the rule of IMF.
The main question lies, whether privatization provides a means of development? If the case in Pakistan is to be analysed privatisation seems to be taking its toll on the nation, this is clearly recognised by the decrease in social development causing a lot of the citizens to lose out on the modern day normalities such as education and health care. Also income inequalities have become an increasingly worrying epidemic in Pakistan as the public all believe that the visible gap between the poor and rich has continued to grow and projects the future will continue in the same trend of power and wealth in the hand of corporate elites. However, a means of development has been up stood globally yet merely as an advertisement considering how the ease of access across the world is very limited which in my opinion is solely down to common financial absence amongst the people.
Privatization believes to create efficiency, although in Pakistan like many other countries have shown the contrary. This is identified in the redistribution of public assets that has been gained by the rich, while the public as a whole become poorer. It is apparent that the citizens of Pakistan have become the loser and again the corporate elites have won in the global political economy.