Why Oil and Gas Development Company Limited (OGDCL) Should Not Be Privatized

Abstract

There is so much criticism of this decision of government to privatize the OGDCL. Motivated by this scenario that either OGDCL should be privatized or not, this research was conducted.  Purpose of this research was to estimate and predict the future performance of OGDCL. In this research, major focus was on the historical financial and operational performance of the oil and gas development corporation of the Pakistan in the last decade. Different analysis on OGDCL like financial ratio analysis, competitor analysis, horizontal analysis, vertical analysis, common size analysis and trend analysis have been conducted. Although oil and gas industry is a growing and emerging industry in Pakistan and oil and gas companies are earning very attractive profit, but government of Pakistan wants to privatize the oil and gas development corporation of Pakistan limited (OGDCL).With the help of previous data and analysis, it is concluded that oil and gas development corporation of Pakistan should not be privatized as it will be not in the favor of the state as a whole and it may affect the impressive performance of OGDCL. This study provides information that why organizations which are performing well like OGDCL, should not be privatized. It also recommends that what other measures should adopt to sustain performance of such companies.

Keywords: OGDCL, PPL, financial analysis