Privatization of National Assets: Solution to Fiscal Deficits

Abstract

This paper is exploratory in nature and shall investigate the nature of privatization law keeping in focus the impact this law has created on the fiscal deficits. State Owned Enterprises are the surfeit of a nation which provides those goods and services which the market sometimes is unable to provide. These enterprises have a large share in the macro-economic structure of a county that aims in providing goods and services at a rate that is affordable for everyone. Through this paper the attention of the concerned authorities shall be drawn towards the fact that privatization is not the ultimate solution to all economic problems and that there are numerous other options and choices which will to cater the declining nature of our economy and increase in the heavy debts. This paper also has some factual reasoning regarding the enterprise which have been privatized but are not working up to the mark. Hence the gap in the nature of the policy making must be addressed looking for policies that will revive the working of SOE’s. the recommendation proposed in this paper allows foreign investors to invest in the public assets as it would increase the trading between the countries.