Since 1990 Pakistan has sold 166 state-owned enterprises for Rs. 476.5 bn (PKR) to finance deficits and increase efficiencies of the mismanaged corporations to spur economic growth. It is said that strategic monopolies like PTCL should not be privatized because foreign intelligence can gain access to confidential telephonic conversations between Pakistan and foreign countries which can hurt Pakistan and its economic growth. A sale like PTCL has not been practiced anywhere else, which includes both equity and management control, and the buyers have not paid the full bid money even after five years of process completion. It is quite debatable whether the privatization deal has favored new buyers at the expense of public and national interest.

Privatization of state-owned enterprises is considered as the most challenging task of corporate governance, especially in developing countries (Ramamurti, 1991). It requires formulation of an overall privatization strategy in carrying out effective, smooth and transparent privatization of public enterprises. The paper discusses the privatization of Pakistan Telecommunication Company Limited (PTCL), a well-known case referring to the noncompliance of corporate governance during the hasty transfer of PTCL to new administration.

The present study employs the case study methodology. Case study is an empirical inquiry that investigates a contemporary phenomenon in depth and within its real life context, especially when the boundaries between the phenomenon and the context are not clearly evident.

Corporate Governance Journal, Privatization of PTCL, Corporate Governance Failure, Pakistan Telecommunication Company Limited (PTCL), Pakistan Telecommunications Authority (PTA), Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).