This study focuses on impacts of privatization on profitability. The purpose is to check the effects on profitability of post privatization and pre privatization. For examining the financial performance of listed companies in Pakistan stock exchange, firms from manufacturing sector are taken in to our study. Sample includes firms from energy and cement sector which are privatized during the year 2000-2015. In study the data is collected from the financial statements of the firms from year 2000-2015. Data was analyzed using financial performance measures that are grouped in to five different categories which are liquidity, solvency, managerial performance, profitability and growth. After running the tests on the data we find that the profitability and the performance of the firms increases after the firms are privatized. And they become more profitable than before in most of the cases. Thisresearch provides an insight in privatization of firms and its impact on efficiency and effectiveness of the firms in monetary terms. Supervisor:- Dr. Abdul Rashid