Public sector, private sector or public private partnership

Public sector, private sector or public private partnership

Table of content 

Definitions 

1 Public sector 2 Private sector 3 Public private partnership

Analysis 

Fact and figures, Reports, Examples. 

Private sector in Pakistan 

Public sector 

The Public sector is usually comprised of organization that are owned and operated by the government and exist to provide services for its citizens (Jan Erik).public sector provides services to every citizen of the country no one can be excluded from its services the public sector is services oriented not profit oriented, The public sector is monopolistic, providing essential services, while the private sector is competitive, with alternative sources for the goods and services it produces.

History shows us that many wars are being fought on the bases of cultural and religious bases where majority seems override the minority. Sense of being superior to suppress others is a human behavior from very being of the humanity. Historical lessons and social experiences shows us that central strong government is very much important not just too administered country peaceful and but also for it inclusive growth

In the representation of economic actor, the public sector (state) is defined as "the set of all activities developed by the State", which includes the following bodies

Public institutions the resources of which come from the public budget.

Central and local governments producing public goods and services aimed at the society. 

Social protection bodies answerable to the public power and its decisions

Public enterprises obtaining income (resources) from the sale of own production, 

Public sector services:

In Pakistan 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

In most of the countries, the public sector comprises the national, regional, and local governmental authorities, including the policy measures defined and adopted by those authorities, in order to provide public services. 

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

Disadvantages 

In Pakistan the public sector is very weak as it has no accountability, no transparency, no rule of law and check and balances 

Health sector indicator Pakistan is ranked 147th out of 170 countries in 2019 HDI

Pakistan ranked 124 out of 179 in term of corruption (corruption perception index 2020)

Loopholes in public sector 

Inefficient management 

Lack of efficiency 

Delayed decision 

lack of innovation

Excessive government control

Political interference

Many influential people in the government work for their personal gain or make sure that others are working for their personal gains by exploiting these public institutes 

Fact and figures 

There are almost 11,000 ghost schools in Sindh. 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.

Advantages 

It can’t be conclude that all the institutions are inefficient many institutes are working effectively such as NADRA NH&MP BISP and PIMS this all institutes make success story  

According to the Pakistan institute of development economics, approximately 56% of people are employed in the public sector, 18% in the private sector, and 26% are working in the informal sector

Fact and figures 

According to 2016 statistics, Pakistan has more than 1200 public hospitals and 700 private hospitals. Besides these hospitals, there are also small Medical Clinics plus Maternity & Child Health Centers in different areas of Pakistan. The fees of public hospitals are marginal and affordable for all. We have massive examples such as PIMS Islamabad, Jinnah hospital Lahore, Punjab institute of cardiology, Children’s hospital Lahore, Federal government services Lahore, Civil hospital Karachi, services hospital Lahore

According to Pakistan Education Statistics (2016 - 2018), the education system of Pakistan comprises 305,763 institutions accommodating 51,835,089 students and 2,073,433 teachers. The system is composed of 189,748 (62%) public institutions and 116,015 (38%) private institutions, which also include 31,115 Deeni Madras. To make sure that the children of the state get quality of education and there should be no discrimination in the standards of education, the government is working on multiple education policies like the single national curriculum and many others. Education system of Finland and China which has been proven to be best system and totally based on central system owned by public sector which is check by public representatives.

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.

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

As a cornerstone of my policy, we will substantially expand public-private partnerships to maximize the amount of investment and funding that is available for space exploration and development”. (Donald Trump)

Some of the advantages of PPP include

Access to private sector finance.

Increased efficiency in the private sector.

The use of funds has become more transparent.

Procurement is a time-consuming activity that involves substantial transaction expenses.

Contractual uncertainty

Monitoring and enforcement are both important.

Fact and figures 

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. In November 2007, the government of Pakistan introduce an initial policy on public private partnership, this policy aims to promote the public-private partnership in the country in the light of providing more efficient, affordable and timely infrastructure services. In early 2021, Parliament approved the amendments to the 2017 PPP Law, enacting the Public Private Partnership Authority

Public-private partnerships are typically found in transport infrastructures such as highways, airports, railroads, bridges, and tunnels. Examples of municipal and environmental infrastructure include water and wastewater facilities, with the support of Pakistan's government, public-private partnerships are becoming increasingly commonplace. Additionally, a Public-Private Partnership Cell has been established by the Punjabi government. The Flyover over Railway Crossing road Lahore, Lahore Ring Road Southern Loop (SL-I & SL-II) have been completed through a Public-Private Partnership (PPPP). If the government works with Pakistan's strong private sector, the country can emerge from its current crisis and move forward with its military campaign

Private sector 

The private sector is referred to as citizen sector, the private sector is owned by the private group’s people the private sector is intended to earn profit it is profit oriented. The private sector is the part of economy  

The private sector is a very diverse sector and makes up a big part of many economies. It is based on many different individuals, partnerships, and groups. The entities that form the private sector include:

Sole proprietorships

Partnerships

Small and mid-sized businesses

Large corporations and multinationals

Professional and trade associations

Trade unions

The private sector plays an important role in the economy through the following functions:

Job creation through generating employment opportunities within private companies

Contribution to tax revenues and capital flow through the economy

Provides goods and services to both consumers and businesses

Attracts investors both domestically and internationally

Finances business diversification and competition between companies

 “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’’ Prime Minister of Pakistan

Private sector is free and competitive from the emergence of Pakistan from the rule of Mughal Empire in India they produce goods and services, the subcontinent have vibrant private sector The public sector is in very less at the time of partition such as railway telephone or telegram department the post office, Karachi port trust radio and some coal and salt mines. From 1958-1969 the rulers of Pakistan are in the favor of private sectors it was the period of un parallel growth the first expression of privatization as a public policy instruments occurred in aye tenure since 1999 the government policy of economic structural transformation based on deregulation decentralization economic liberalization and privatization has aim to expand the role of private sector. Today, both Public Sector & Private Sector have become an integral part of the economy. There may not be much difference in working of these sectors in advanced countries, 

Advantages 

According to official map studies the private sector account 70 percent of all health in the United States, through the economy it Provides goods and services to both consumers and businesses it attracts investors both domestically and internationally.

Private institution are managed by different groups in order to facilitate the public while making sure that profit is earned due to profit making scheme this sector is more effective efficient and accountable every action of institute or employee is recorded it also called easy hiring and easy firing private sector make sure that customer is well satisfied by all means private sector is more capable than the public sector but it is not free of cost private institutions have more organized structure  

Fact and figures 

With implementation of government in reform program Pakistan ranked among top ten reforming country in 2006.The privatization in Pakistan is consider as most successful experience in south Asia when the private sector does well there’s revenue for public sector Successful private sector organization are edhi foundation shakut khanum  cancer hospital chhipa welfare association aurat foundation and shahid afridi foundation many non-government organization are working for people welfare, Shaukat khanum hospital is offering cancer patient free treatment  2017-2018 72 percent received completely free treatment 

Private sector spending generated over 80% of Pakistan's GDP growth rate, followed by public sector consumption, which contributed only 13% every year to maintaining growth pace .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,

The agriculture sector with a 22.69%contribution to GDP is wholly private sector owned mining and quarrying activities are also in private sector within manufacturing with a 19.1% contribution to GDP, the private sector account for over 77 percent of commercial banking sector 100 percent of textile industries 100 percent of telecommunication sector. The banking sector privatization gave the impetus for tax reform where tax rate of banks brought down in line with collaboration rate from over 50-35% 

Participation of the private sector in the educational system and its development in Pakistan has a long history. From 1947 until 1971, the private sector contribution expanded considerably through a variety of nongovernment organizations but the process of nationalization by the Peoples Government completely eliminated the private sector from education in 1972 to 1979.

Public educational institutions in Pakistan don’t provide the same level of quality education to student that private institution do the school and colleges even don’t have infrastructure and basic things out of 317323 schools in the Pakistan 38% are private the number of low cost private schools in Punjab increased from 32000-66000 from 1990 -2016 majority of them open in rural areas private sector education have check and balance on teacher staff and students too. The major Pakistan top educational institution are LUMS BEACON HOUSE SCHOOL AGHA KHAN UNIT

PAKISTAN PRIVATE SECTOR  

Hubco is the largest private sector power generation company in Pakistan and originally established by French power companies. It is now owned in part by the Dawood Hercules Corporation

Nishat Group/Mian Mansha (Worth: $5.57 billion)Nishat Group is a business cooperation owned by the country's richest man Mian Muhammad Yahya Mansha with a worth of $5.57 billion, Mian Mansha has attained numerous UNO Position as Pakistan's Richest Man for the Last 15 years.

Engro Corporation, is a conglomerate headquartered in Karachi. Founded as a fertilizer business in 1965, it is one of the largest companies in the country that employs over 2,600 individuals across the Group and has operations in a diverse range of businesses

Habib Bank Limited abbreviated as HBL, is a Pakistani multinational bank based in Habib Bank Plaza, Karachi, Pakistan. Founded in 1940 by the Habib Family, HBL became Pakistan's first commercial bank. 

Air blue Limited is a private Pakistani airline with its head office on the 12th floor of the Islamabad Stock Exchange Towers in Islamabad, Pakistan. Air blue operates scheduled domestic and international flights, the latter to Saudi Arabia and the United Arab

Air Sial is a Pakistani airline headquartered in Sialkot, Pakistan. Prime Minister Imran Khan inaugurated AirSial, the third private airline of Pakistan, on Wednesday, 9 December 2020

Aisha Steel Mills Limited is a Karachi-based steel manufacturing company with production capacity of 220,000 metric tons per year. It is owned by Arif Habib Group. Its plant is located at Bin Qasim, Karachi and produces at a capacity of 220,000 metric tons per year.

TCS (Logistics Company), TCS stands for Tranzum Courier Service. TCS is a Pakistani courier and logistics company which is based in Karachi, Pakistan

Telecommunication companies

Jazz warid zong telenor

Ride sharing companies

SWVL CREAM UBER

Food panda is an online food and grocery delivery platform owned by Delivery Hero. Food panda operates as the lead brand for Delivery Hero in Asia, with its headquarters in Singapore. It is currently the largest food and grocery delivery platform in Asia, outside of China, operating in 12 markets across

Daraz Group is a multinational technology company that focuses on e-commerce, logistics, payment infrastructure and financial services.

Private news channels are neutral and biased than government media, because they don’t have political influence. They are independent.

Edhi founfation it is a nonprofit organization in Pakistan. The services provided by this foundation are, edhi ambulances services, funeral services, morgue services Edhi home and orphan age, soup kitchen, animal rescue center

Shaukat khanum memorial hospital In 1994 this hospital was established. About 75% of the patients get fee treatment here, this is Pakistan’s first state of the art hospital

Shifa international hospital it was established in 1987 it is a 550 bed hospital this hospital offers more than 30 medical specialties also provides quality health facilities.

Private internet connection are available on affordable rates and packages that PTCL. It has cheaper rates for every level of society to avail this facility.

Bahria town This is Pakistan’s some of the largest real estate group with a worth of $ 3.4 billion.

Beacon house school system this was established in1975 in Lahore this institute is educating more than 315,000 students in 8 countries. 146 branches are operational in Pakistan.

MALIK ZEEWAQAR AHMED 

21858 

SEMESTER 6TH PA&G