ECONOMY OF TOMORROW Economic and Social Consequences of Privatisation in Pakistan By Dr. Pervez Tahir December 2014  The Government of Pakistan has embarked on a fresh programme of privatisation of state owned enterprises and properties for reducing public sector debts and fiscal deficits. The government expects that the privatisation process will increase the efficiency of all economic sectors by invoking private sector's technical competence.  The decision has raised questions on privatisation as an over-relying option to overcome structural challenges in economy and governance. Drawing on murky experiences of recent past, nationally and globally, analysts have expressed reservations on the motives of privatisation as a viable policy option or imposed conditionality of international lending institutions. The concern has also been pointed on the visible lack of political and social consensus on privatisation due to involvement of cross-cutting stakes and ownerships within the Federal structures as well as in society and industrial relations partners.  The paper disputes the merits of the privatisation policy by reviewing its performance in the past and explains that consequences of mere ownership swap from public to private sector failed to achieve the desired objectives of reducing fiscal deficits and debts, enhancing efficiency of the privatised firms, improving regulatory mechanisms, increase in investment, employment, social expenditures and reduction of poverty. It warns the adverse fallouts of the repetition of policy on existing and future opportunities for decent jobs, labour market governance including workers' rights and working conditions as well as living and operational costs for consumers and economy.  Opposing disposing public assets to reduce public debt burdens, the paper stresses focused attention by the government on inevitability of enhancing revenues through broadening equitable tax base, removing management deficiencies in public sector enterprises and improving the role of regulatory bodies. The paper advocates vigorous role of elected representatives to examine the needs of privatisation while upholding the economic and social wellbeing of the people as citizens, workers and consumers.