Charter of the Economy Sub-category 2(c): Sub-category 2(d): SOEs which are potential privatization candidates • 10 SOEs included consisting of ADBP, NIT, SSGC, SNGC, USC, NESPAK, PTDC and others. SOEs under liquidation • 1 SOE, only, the IDBP The total number of SOEs are 84. According to the above categorization, out of the triage evaluation of 84 SOEs, 39 are to be retained in state ownership and 45 are to be privatized or liquidated. However, the criteria enunciated for privatization are primarily. Criteria 1, 6 and 3 out of the eight criteria in Chart 14.1. 14.3. Evaluation of the Privatization Program As highlighted above, SOEs impose a big burden on the Federal Budget. Therefore, efforts need be made to reduce these liabilities to bring down the size of the fiscal deficit. Extent to which the liability can be reduced by privatization of SOEs, wherever justified and feasible, needs to be examined. Criteria for Privatization Some criteria are suggested for evaluating the case for privatization of an SOE. The criteria are presented along with the score in Chart 14.2. The maximum possible score is 10 and the minimum is 0. A SOE can be seen as a candidate for privatization if it has a score of 6 or above. Chart 14.2: Criteria for Evaluating Case for Privatization S.# Score S.# 1. Profit-Making 5. Outstanding Liabilities • If losses 1• If no or small liabilities • If small profits ½• If large liabilities • If large profits 2. Monopoly • If in a competitive market 0 6. 2 Performance of Core Social or Economic Functions • If functions not performed • If performed • If a monopoly 0 7. Over employment 3. Regulatory Authority • If large over employment Score 1 0 3 0 0,5 142