Importance of Keeping a Government Share in Pakistani Companies after Privatization

This study investigates the operational and financial performances of private and semi- government companies in Pakistan. Our sample consisted of 80 private and 12 semi government companies for which we used the word “government companies ” or SOEs or “public companies”. With computer aid we calculated different Profitability Ratios, Activity Ratios, Long Term Solvency Position Ratios and Liquidity Ratios for both types of companies during the period of 1999 – 2006. Results of analysis showed that public owned companies have achieved better performance than private companies in terms of profitability, long term solvency position and liquidity. However no significant differences were found between private and public companies in respect of turnover ratios.