PSEs and law of diminishing marginal utility


The government and the opposition are engaged in a war of words over the former’s decision to fire more than 4,500 employees of Pakistan Steel Mills (PSM), which is one of the largest public sector enterprises (PSEs) in the country.

The government has defended its decision on the ground that it was occasioned by the need to slash heavy losses in PSM as part of economic reforms, which include the restructuring of PSEs, leading possibly to their privatisation.

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