OBJECTIVE OF PRIVATIZATIONThe objective of privatization is to improve the efficiency, performance and profitability of publicly-owned enterprises while keeping in line with its long-term goals and objectives.KESC FIRST OF PRIVATIZATION KESC was founded in 1913 as a limited liability company. At the time of Pakistan's independence, the generation capacity of KESC was 35 MW and the annual production was 12,000 KWh. The Government of Pakistan took control of KESC in 1952, there were two plants: the diesel plant and the steam plant, these were the generating plants of the company. The diesel plant had a capacity of 6 MW while the two steam plants had an installed capacity of 23.5 MW. KESC was owned by the Government of Pakistan, primarily with 91% shares held by the government, 63% directly and 28% indirectly through public sector organisations. The remaining 9% of the shares were held by private individuals. In the 1960s the total capacity was 267 MW and in the ten years from 1955 to 1965 the electricity consumption rose from 72 KWh to 229 KWh considering the fact that the country was facing a reduction in growth rate of 9% in 1965. In 1970, annual production amounted to 1,386 million units for a demand of 254,225 consumers and suffered losses by 19%. In 1973, the impact of the oil crisis showed itself on KESC rates and as a result in 1974 the company's rates rose to around 30%. In the year 1971-78 new consumers totaling 209918 were added and in 1977 an additional capacity of 110 MW was also added. FINANCIAL PERFORMANCE The company suffered losses of 19% in 1970. After which it rose to 22% in 1977. During the period from 1972 to 1978 the net profit margin on sales after interest reduced and the company faced financial losses. During 1990 the p...... half of the document ......KESC. To conclude, the privatization of energy distribution has failed in 95% of cases in the world and governments have been forced to take over the management of it. Control of this is mainly due to the fact that the private sector management takes measures that aim to focus only on huge profits. The performance of such publicly owned enterprises is not of good quality due to increasing government interference in decision making leading to corrupt and socially irresponsible practices that hamper the efficient performance of any enterprise. Similar was the case of KESC, the privatization of KESC which took place in 2008 presented improvements but was not without flaws. In addition to this, KESC's privatization process, which began in 2005, when a Saudi-based company made the highest bid and subsequently refused to buy KESC, was not adequately transparent..