Public-Private Partnership:

Pakistan is a growing nation with a slew of social and economic problems. It is a democratic country where residents elect their government in the hopes of improving their living conditions. Unfortunately, Pakistan's level of living has deteriorated in recent decades. Pakistan is placed 147th out of 170 nations in the 2019 Human Development Index, showing low human development. Pakistan has a population of 220.9 million people. (According to the World Bank, 2020). With limited resources, the government faces various obstacles in providing services to its inhabitants. Pakistan's public services are nevertheless beset with failure. Successive administrations have failed to provide a reasonable degree of service to the general populace, whether in the fields of health, education, water supply and sanitation, or security. Health, education, infrastructure, and transportation are examples of service delivery. These services are supplied by the public sector, the private sector, or a Public-Private Partnership, which is a partnership between the public and private sectors.

Public Sector:

It is the portion of an economy that the government controls or owns. The quality of government-provided public services in Pakistan continues to deteriorate. The wealthy gain more from public services than the poor. Poor people, for example, waiting for hours in public hospitals while the wealthy and powerful breeze through their visits. Pakistan's public sector is inefficient, accountable, and transparent. There are several instances of corruption in Pakistan's public sector. Pakistan is rated 124th out of 179 nations in the CPI (Corruption Perception Index) for 2020. In the public sector, there is no accountability. More than two dozen governmental institutions have refused to have their finances audited, according to the AGP (Auditor General of Pakistan). National Bank of Pakistan, Ministry of Religious Affairs, Ministry of Water Resources, Pakistan Railways, Peoples Primary Health Initiative Baluchistan, Khyber Pakhtunkhwa Oil & Gas Company, and the Khyber Pakhtunkhwa Labor Department are among those affected. In Pakistan, governmental officials frequently accept bribes in order to complete tasks. The dishonesty of public servants with their tasks is one of the key causes of bad service delivery. There are almost 11,000 ghost schools in Sindh. Teachers are paid by the government, yet they do not have any pupils to educate. These teachers are nothing more than a drain on the state's scarce resources. According to The Express Tribune, there are 1.8 schools for every 1,000 children in rural Sindh. Two instructors are found in only 15% of elementary and secondary schools. Not only that, but the schools are also in desperate need of basic supplies. Drinking water, bathrooms, playgrounds, and boundary walls are all lacking in a huge number of schools. Although public schools are less expensive than private schools, their educational quality is poor. Pakistan's public schools lack qualified teachers and basic resources. Pakistan too has a shaky infrastructure. The rise of infections like hepatitis-C and other diseases has been attributed to insufficient water supply and sanitation services. Electricity and gas load shedding are also causing problems for people.

Some Public sectors have made efforts to improve their services like Nadra, Pakistan Post office. Government has also taken some good initiatives for the welfare of the public like Pakistan Citizen Portal, Metro Bus, Ehsaas programme, Sehat Sahulat programmes. But still efforts are required from Government to ensure efficiency, transparency and accountability in Public sectors.

Public Sector Services:

Public sector services and organizations include:

• Education (Schools, Libraries)

• Electricity

• Emergency Services

• Fire Service

• Gas and Oil

• Healthcare

• Infrastructure

• Law Enforcement

• Police Services

• Postal Service

• Public Transit

• Social Services

• Waste Management

Apart from the services mentioned above, the public sector also consists of public infrastructures, such as public roads, tunnels, sewage systems, and electrical grids.

Private Sector:

The private sector is the component of the economy that is operated for profit by individuals and businesses rather than by the government. As a result, all for-profit firms that are not owned or run by the government are included. (Investopedia, 2020). The private sector, in contrast to the state sector, is more efficient and responsible. Although private sector services are more expensive, their quality is far superior to those of the public sector. Pakistan has increasingly depended on the private sector to produce products and services since independence. Today, the private sector owns approximately 77 percent of commercial banking, 100 percent of textile and telecommunications, and a large portion of the cement, sugar, automotive, and fertilizer industries in Pakistan. Aside from telecommunications, the private sector has been active in the electricity sector when it comes to infrastructure development. It is a major generator of energy and, following the privatization of the Karachi Electric Supply Corporation, has also joined the electrical distribution business (KESC). Private sector spending accounted for over 80% of Pakistan's GDP growth rate, with public sector consumption accounting for only 13% of the country's annual growth rate. Pakistan has a sizable private health-care industry. According to national surveys, more than 70% of health consultations take place in the private sector, and more than 90% of total clinics/first-level care facilities are in the private sector, according to official mapping studies. People who cannot afford cancer treatment can receive it for free at Shaukat Khanum Memorial Cancer Hospital. Over 75% of cancer patients have been evaluated for free at Shaukat Khanum in Lahore. In 2017–2018, 72 percent of patients were treated at the hospital totally free of charge. Even in the field of education, private schools and universities have been shown to provide higher-quality education than public schools and institutions. The majority of Pakistan's best educational institutions, such as Agha Khan University, LUMS, and Beacon House School, are private. However, given Pakistan's current condition, only a small percentage of the population has access to these institutions. The majority of Pakistanis cannot afford to send their children to these institutions. Treatments at most private hospitals are also too expensive for the poor. To help Pakistan's inhabitants, we need a Public-Private Partnership.

Public-Private Partnership:

Collaboration between a government agency and a private-sector enterprise that may be utilized to fund, create, and run projects such as public transit networks, parks, and convention centers is known as a public-private partnership. (Investopedia, 2021). Pakistan's infrastructure, electricity, and education sectors are all severely lacking. Collaboration with the private sector can help the government enhance the quality of its services. Many PPP initiatives are organized and funded by the private sector. This means the government won't have to rely on its own income (taxes) or borrowing to meet its financial obligations. Collaborations between private companies and governments are advantageous to both sides. Private-sector technology and innovation, for example, can help improve the operational efficiency of government services. The public sector, for its part, provides an incentive for the private sector to complete projects on time and within budget. Furthermore, growing the economy increases the country's competitiveness in terms of fostering infrastructure development and strengthening related construction, equipment, support services, and other businesses. The Pakistani government is a strong proponent of public–private partnerships (PPPs). Between 1990 and 2019, Pakistan has 108 financially completed PPP projects with a total investment of $28.4 billion. Nearly 88 percent of these projects are in the energy sector, which has attracted more than $24.7 billion in investment, followed by investments in the port sector. The Public Private Partnership Authority (Amendment) Act 2021 was enacted in early 2021 after the parliament accepted revisions to the 2017 PPP Law. This strengthens the legal and regulatory climate for forming and implementing public-private partnerships, hence increasing private sector investment in public infrastructure and related services. There are several PPP ventures;

1. The construction of the Sukkur Hyderabad Motorway
2. The construction of the Sialkot Kharian Motorway (expected cost around US$225 million);
3. The construction of a teaching and research hospital;
4. The construction of an innovation’s ecosystem (science and technology park);
5.  The conversion of a guesthouse located in Lahore (the provincial capital of Punjab province) into a hotel;
6.  The creation of a mass transit facility in a major city, the Karachi Circular Railway; and
7.  The modernization of the current Karachi–Pipri Rail Track.

 

Punjab's government has also established a Public Private Partnership Cell. The Flyover over Railway Crossing Khana Kachha Lahore and the Lahore Ring Road Southern Loop (SL-I & SL-II) have been made successful through Public Private Partnership under the Punjab Vehicle Inspection Certification System (VICS).

As a result, Public-Private Partnership, in my opinion, is the key to Pakistan's prosperity. Pakistan's private sector is quite robust. Government should take steps to engage with the private sector not just on infrastructure development, but also on education and health care development.

According to the World Bank, “Public-private partnerships (PPPs) can be a tool to get more quality infrastructure services to more people. When designed well and implemented in a balanced regulatory environment, PPPs can bring greater efficiency and sustainability to the provision of public services such as energy, transport, telecommunications, water, healthcare, and education. PPPs can also allow for better allocation of risk between public and private entities”.

Agreement between the government and the private sectors for the provision of the public goods and services by the ends. It involve private financing, construction and management of key infrastructure etc. The private partner invests in the application software design, development, implementation and operations, the government maintains the responsibility to deliver services to the citizen. Private sector just work for gaining more profit with invest minimum resources and the public sector not work for gain maximum profit because the main motive of the public sector to provide the best services to the citizens.

References:

https://www.worldbank.org/

https://www.usaid.gov/pakistan

https://www.researchgate.net/publication/316856423_PUBLIC-PRIVATE_PARTNERSHIPS_IN_PAKISTAN_A_NASCENT_EVOLUTION

https://thelawreviews.co.uk/title/the-public-private-partnership-law-review/pakistan.

Name: Bilal Akram.

BS G&PP 6TH Morning.

Roll No: 21843.