How will the privatization of Mexico's PEMEX affect government revenues?

The overreliance on oil revenues has had considerable negative impacts on Mexico's economic performance, especially during extended durations of diminished global oil prices. Moreover, PEMEX is struggling in terms of capital and technical capacity to increase production to a level that can sustain the desirable economic growth in the country. In this regard, for the state to stabilize and increase revenue, privatization, which will introduce additional resources, including technology and capital, is inevitable.

Additional investment capital, along with technology, will help the country to increase production, hence escalate the total revenue earned from oil and natural gases. Furthermore, privatization will enable the government to reduce the country's dependence on oil, by enhancing budgetary allocations in other sectors, including agriculture and construction. Thus, by privatizing PEMEX, the government of Mexico can increase economic activities across the board of all industries, hence earn increased revenue, as well as stabilize the economy, by reducing the country's dependence on oil.