Privatization in Pakistan for Economic Prosperity Under Islamic Economics A Qualitative Analysis

Abstract

Abstract

Privatization is the process of transferring organizations, assets, activities and functions from public to private sectors. Privatization enables the markets to work more appropriately. State-centered policies faced challenges like bureaucratic inefficiencies and dissatisfaction among citizens that resulted in prompting the adoption of privatization process in order to enhance the dynamics of  market. The shift towards market-oriented policies, including liberalization, particularly in developing countries, has significant political, social, and economic implications. In developing nations like Pakistan, the privatization process, initiated in 1988, aimed to address certain issues like corruption, administrative mismanagement, and fiscal deficits. Advocates emphasize the economic benefits of  privatization process such as increased growth and efficiency. On the other hand, critics highlight the main concerns about monopoly and institutional problems. This multifaceted impact of privatization underscores the intricate relationship between economic policies and broader societal challenges. This research paper shows a brief figure of the impact of privatization in Pakistan. During this analysis we have pointed out  weaknesses  prevail in not achieving better results of privatization. Our main thesis is that these weaknesses can be handled  by Islamic Economic principles. 

Keywords: Privatization, Fiscal Deficit, Liberalization, Monopoly, Islam, Islamic Economics.