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;
- The
construction of the Sukkur Hyderabad Motorway
- The
construction of the Sialkot Kharian Motorway (expected cost around US$225
million);
- The
construction of a teaching and research hospital;
- The
construction of an innovation’s ecosystem (science and technology park);
- The
conversion of a guesthouse located in Lahore (the provincial capital of
Punjab province) into a hotel;
- The
creation of a mass transit facility in a major city, the Karachi Circular
Railway; and
- 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.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.
Very effective cp👏
ReplyDeletePPPs continue to be highly controversial as a funding tools whats yours opinion on this statement
ReplyDelete