Privatization has been widely adopted as a major economic policy because of its fruitful as well as sound results. This study explores the efficiency changes in firms or units privatized in Pakistan. The interaction of political and organizational factors is seen to be contributing to these efficiency changes. The organizational and political factors are analyzed with respect to each firm using panel data for four years before privatization and sixteen years after privatization. The results reveal significant efficiency changes for banking, auto engineering and energy sector. However, for telecommunications and cement, the units under consideration are newly privatized and it has already been established that the effects of privatization are visible in the long run. Supervisor:- Dr. Wasim Shahid Malik