Contradiction between Efficiency in Privatization with the Goal of Pursuing Income and Profit

The purpose of this article is to evaluate the question that “does pursuit of income, avert the privatization away from its main goals?” While in the process of selling state owned enterprises (SOE) to private sector the government inevitably gets some income, and this is unavoidable, this article will show that when income becomes an important goal in privatization process, it can meaningfully affect on the other purposes of privatization. This article presents theoretical reasons for this claim and evidences from privatization in Iran that confirm it. This article recommends that in privatization process focus be on the efficiency and performance of enterprises rather than income or profit acquisition.