Akash

Ijaz

PrivatizationDefinition:

1. Privatization means selling of Nationalized industries and other parts of the Public sector to private businesses and individuals.

2. Privatization is the denationalization of an industry transferring it from public to private ownership.

Objectivesof

Privatization

Improve Performance

a) The purpose of Privatization of Bank is to improve performance.

b) When ownership is in private hands they work for Profit.

c) The operational efficiency increases due to proper control.

Promote Competition

a) The purpose of Privatization of Bank is to promote competition.

b) The owners are interested to increase the Rate of Deposits.

c) The larger the Deposit the larger the Profit.

d) The sense of competition develops among bankers.

Reduce Burden of Government

a) The business is conducted by Private sector & reduce the burden of Government.

b) The Government can frame rules for proper working.

c) It is not the duty of Government to own & run financial institutions.

Release of Funds for Social Sectors

a) The Privatization of Bank is to provide funds to Government.

b) The capital increased in Bank is available for social sectors.

c) The Government can set up Schools & Hospitals for Welfare if General Public.

Accelerate Pace of Industrialization

a) The sale of Banking business to Private Parties is helpful to accelerate pace of Industrialization.

b) The Funds invested in Banking sector becomes free for development of Physical & Technological infrastructure.

Remote Capital Market

a) The Privatization of Bank is useful for promotion & strengthening of Capital Market.

b) The shares of Privatized Bank are sold to General Public.

c) The Capital Market becomes stronger due to increase in the wealth of shareholder

thAnkyOu