Not everything in a country can run by a government so which itself enough why we need private sectors to keep things in balance, of course government bend their rules in favour of them for whatever reasons while private sectors create job opportunities that again help someone to make money and they will spend the money they earned so that will obviously help in the development of economy in a country.
If anything governments should stay away as much as possible from intervening on the economy, this is because most governments are incredibly inefficient by design, by creating a lot of government jobs that are not really needed, but that are given to friends or political allies as quotas.
And we have evidence of this with the many governments that have their own state companies and that are run terribly, often presenting losses and remaining afloat thanks to the taxes their citizens pay and not because those companies are run as they should be.