Question

Do you think only loss-making companies should be privatised? Why?

Answer 1

No, privatisation should not be decided solely on whether a company is making a loss. Some loss-making public enterprises may provide essential services or perform an important social or strategic function. Such enterprises may need restructuring rather than privatisation. At the same time, the government may disinvest in a profitable enterprise for other economic reasons. Therefore, privatisation decisions should consider efficiency, public interest, strategic importance, and long-term benefits, not profit or loss alone.