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CSS Economics of Pakistan P-II QUESTION #1701
Question 1
Among the most persistent structural criticisms levelled at Pakistan's privatisation drives since the 1990s, which of the following has been the most prominent?
  • Significant decline in government tax revenues post-privatisation
  • Absence of transparency, competitive bidding, and accountability in the divestiture process✔️
  • Excessive regulatory burden imposed on newly privatised entities
  • None of these
Correct Answer Explanation
The most consistent and widely documented criticism of Pakistan's privatisation policy is the lack of transparency and accountability — assets were often sold below fair market value, through non-competitive processes, to politically connected buyers. The privatisation of entities like PTCL, Pakistan Steel Mills deliberations, and banking sector sales have all attracted scrutiny on these grounds. Regulatory capture of privatised sectors, not over-regulation, has also been a concern.