Privatization contributes to the economic growth by decreasing borrowing requirements and eliminating unnecessary spending.A set of prices was established in the market ，The use of advanced technology that minimizes the economic costs .The production of products and services at a required level.
The government of UK has implemented rules and regulation to improve the performance and efficiency of the state-owned enterprises. Privatization reduces or eliminates corruptions in public sector, improves customer service, eliminates unnecessary “red-tape” and focuses on customer tastes and preferences. The people of the country are also empowered as they participate in the management of the companies.
The governments of all the countries are facing many challenges which includes rapid population growth, ageing infrastructure, surpassing service delivery, slow economic growth, high sovereign debt, mounting wage bill in public sector, increase the power of the labour unions in the public sector, increase in corruption within the economy, mistrust and difficulties in finding different ways of managing and funding government activities such as defence, health care, infrastructure. The government has moved towards privatization to overcome such challenges.