Good news!
A famous question regarding privatization of state owned enterprises: What comes first, privatization or market deregularization/liberalization? Most agree both are necessary for more free markets.
"The Government of Pakistan has begun the phased privatisation of three state-owned power distribution companies to minimise sector losses and address recurring debt.
Privatisation can certainly enhance efficiency when firms operate in a competitive and well-functioning market. However, Pakistan’s energy sector continues to be operated in a single-buyer structure, with strict administrative controls over pricing, market access, and electricity transactions.
This raises a critical question about the order of reform: should the power sector move towards privatising distribution companies before creating the conditions necessary for competition? PRIME’s (2024) report “Breaking Monopolies Deregulation Before Privatisation” argues that deregulation should proceed [precede?] privatisation.
Without market liberalisation and required market reforms, privatisation risks replacing public monopolies with private ones, leaving consumers with limited choices and weak competitive pressures. ..."
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