Public Private Partnership has Future || In context of Pakistan || Yasir Hassan

 This Blog will cover the following topics 

• Definition of public sector
• Definition of private sector
• Definition of public-private partnership 
• What is the condition of the public and private sectors in Pakistan
• My Analysis of the public and private sector in the context of Pakistan

 

Let's start with a short definition of these sectors 

 

Definition of public sector

 whenever we are talking about the public sector it means public goods and government services such as education, health care, infrastructure, law enforcement, etc. public sector provides services to every citizen of the country no one can be excluded from its services. And the public sector is services-oriented, not profit-oriented. and this sector is own by Government 

 

• Definition of private sector

The private sector is opposite to the public sector. The private sector is referred to as the citizen sector, the private sector is owned by the private groups, people. The private sector is intended to earn profit. It is profit-oriented.

 

• Definition of public-private partnership 

The public-private partnership (PPP) is defined as the arrangement between two or more public and private sectors of a long term nature. in this sector both public and private sectors contribute to proper work with efficiency, this sector is services oriented as well as profit-oriented and this sector is considered as the ideal for the progress of the developing countries.

 

• Condition of the public and private sector in Pakistan

Pakistan is a developing country in the South Asian region that got independence in 1947 from the colonial British rules and is marked with turbulence, poverty, ethnic violence, social and economic disparities, and unstable governments and dictatorships. The public sector in Pakistan is not very efficient where there is a lack of transparency, political influences, lack of resources, delayed projects, large and unskilled workforce, low earnings and wages, unjust employment opportunities, and promotion criteria. On the other hand, the public sector is required to “serve” the “common people” and protect their interests by facilitating them indiscriminately. For this very objective, public sector organizations must adopt “good governance” practices in these organizations to be efficient and effective. While, Board of Investment (BOI) is one of the public sector organizations in Pakistan, with broad-based responsibilities of “promotion of investment” in all sectors of the economy; facilitation of local and foreign investors for the speedy materialization of their projects and to enhance Pakistan’s international competitiveness and contribute to economic and social development.

 

And if I talk about the private sector in Pakistan The Pakistani Private Sector: Since its inception in 1947, Pakistan has relied on the private sector as the primary producer of goods and services. The early 1970s, however, witnessed a crippling shift towards a command economy and a subordinated private sector manifested through a policy of nationalization. The 1980s and onwards witnessed a reversal of this paradigm and the private sector again began to emerge and lead investment and economic activity. Beginning in the early 1990s, the Government of Pakistan pursued a strategy of privatization, deregulation, liberalization, and good governance to promote private sector development. However, macroeconomic instability and political turmoil, and uncertainty stood in the way of the successful implementation of this strategy. Under a new Government in 1999, major structural, governance, and economic reforms began to be implemented with a focus on generating macroeconomic stability and creating an environment to encourage the private sector to become the growth engine in the economy. The Privatization Act 2000, creation of a Ministry of Privatization and Investment, setting up of a Board of Investment, legislative changes to the State Bank of Pakistan (SBP) Act empowering the SBP/SBP Central Board to formulate, conduct, and implement monetary policy, the creation of a Monetary and Fiscal Board to ensure formal monetary and fiscal policy coordination, and a Fiscal Responsibility and Debt Limitation Act 2005 mandating reduction in revenue deficit and reducing total public debt were important steps that underscored the Government’s recognition of the importance of macroeconomic stability and a clear and transparent legislative framework to support a conducive business environment in the country. The improved economic conditions and investment climate generated both the fiscal space as well as opportunities for private sector-led economic growth through the acceleration of the process of privatization, enhanced private sector investment, and greater foreign direct and portfolio investment. As a result of the successful experience with privatization, in Pakistan today, over 77% of the commercial banking sector, 100% of the textile and telecommunications sector, and a significant part of the cement, sugar, automobile, and fertilizer sector are in the private sector. Within infrastructure development, besides telecommunication, the private sector has been active in the power sector. 

 

• My Analysis of the public and private sector in the context of Pakistan

As I explained the history of the private sector and public sector in Pakistan. If we try to find out which sector is suitable for the progress of Pakistan which sector must lead to deliver all services private sector, public sector, or private-public partnership. So for that first, we have to understand the current situation of Pakistan. If we discuss the current situation of the public sector of Pakistan recently Prime Minister of Pakistan said in a speech that “ our public sector is so big that our countries half of the money spent on them so we left with not enough money that we can invest it on development of Pakistan” so our prime minister rightly said that after independence our leader never works with a strong will to rise the private sector. We have to understand that it is not the responsibility of the public sector to give jobs to every citizen of Pakistan private sector must play its role. So this is the current situation of the public sector let's discuss the current situation of the private sector in Pakistan. If the government give the full authority to the private sector to deliver all services it is not possible in the context of Pakistan because in Pakistan poverty rate is 39.3%   so the poor peoples can’t afford to take services from the only private sector it’s the responsibility of the government to facilitate the poor peoples. In my point of view, the public-private partnership (PPP) is best for Pakistan. Why because the public sector in Pakistan is not very efficient where there is a lack of transparency, political influences, lack of resources, delayed projects, large and unskilled workforce, low earnings and wages, unjust employment opportunities, and promotion criteria.

And the private sector is not afforded by the poor people so the public-private partnership is the last option for the progress of Pakistan. Currently, public-private partnership (PPP) projects are 118 and total investment in public-private partnership (PPP) is $33225 Dollars done by public-private partnership basis and if we talk about the current Active projects they are 117 and Active investment is $3357 Dollars some of them are as below

 

PROJECT NAME	SECTOR	FINANCIAL year	INVESTMENT
China Power Hub Generation Company	Electricity	2017	$1,940.00
Thar Block-I Coal-Fired Power Plant	Electricity	2020	$1,912.00
Suki Kinari Hydropower Plant	Electricity	2017	$1,888.20
Karot Hydropower Plant	Electricity	2017	$1,700.00
Matiari-Lahore Transmission Line	Electricity	2019	$1,658.00
Hub Power Company	Electricity	1994	$1,632.00
Karachi Electric Supply Company	Electricity	2005	$1,301.80
Pakistan Deep Water Container	Ports	2010	$1,200.00
Engro Thar Coal-Fired Power Plant Phase 1	Electricity	2016	$1,108.00
Lucky Electric Coal Power	Electricity	2018	$1,080.00

 

 

 

 

 

 

Written By Yasir Hassan || Bs 6th || Governance and public policy