PUBLC VS PRIVATE PARTNERSHIP

 

HASSAM ASHIQ KHAN
BS GPP 6th

PUBLIC SECTOR

The public area of an economy is the area that gives a  range of governmental services. This can include infrastructure, framework, public transportation, government funded training, medical care, police and military administrations.

Although the public areas varies  among nations through  the regulation and laws that oversees the state associated institutes. Particularly, in low-pay nations with immature economies, mostly it focuses on providing services that can benefit the entire society rather than just those who are using the service.

Non-profit organizations and the public sector work towards the provision of health-related commodities. In the developed economies, the state sector works towards the design of strategies that can drive growth in the economy. State-owned organizations focus on the implementation of economic development strategies to seize new opportunities and anticipate development challenges. The Public Sector is usually comprised of organizations that are owned and operated by the government and exist to provide services for its citizens. Services like health care, national defense, public education, water management, and similar are typically provided by the public sector.

Examples of the Public Sector

Examples of public sector services and organizations include:

•          Training (Schools, Libraries)

•          Power

•          Crisis Services

•          Fire Service

•          Gas and Oil

•          Medical services

•          Foundation

•          Regulation Enforcement

•          Police Services

•          Postal Service

•          Public Transit

•          Social Services

•          Waste Management

 

Levels of Government

Public sector organizations usually exist at three levels:

·         Federal or National

·         Regional (State or Provincial)

·         Local (Municipal or County)

PRIVATE  SECTOR

The private area is benefit driven, taking on a focal job in the country's financial system. The private sector refers to the part of the economy that is not controlled by the state. It includes to gain profit by running businesses. Businesses controlled by the government are part of the public sector, while charities or other non-profits are part of the voluntary sector. Private sector plays an important role for any country.It is also the backbone of any country. In developing countries most of the companies and welfare organizations are working to provide goods and services to the people.

The essential drive behind any business in the private area is benefit. While there might be different objectives required as a component of center organization values, private area organizations strive to see a return on investment and increase year-on-year net profit. Private sector organisations are owned and controlled by entrepreneurs, private individuals, or groups of people. They are not owned or managed by government entities. There are many ways for a private sector business to obtain start-up capital, whether it’s through shareholders, private loans or investment activities.

Private sector examples

Ø Non-profit organisations: while they may receive special tax considerations or government grants, many charities are privately owned and operated.

Ø  Privately owned corporations: larger firms in the leisure, retail, and hospitality industries Like AIR BLUE

Ø Partnerships: examples include small legal firms, accounting practices, and dental offices.

Public and private sector comparison

a private sector business, the public sector also employs workers to accomplish its tasks. However, workers are employed at the federal or local government level. Public service jobs typically involve administrative, healthcare, teaching, armed forces, and emergency services. Workers are paid through government funds, often tax dollars. By contrast, private sector employees are paid from company profits.

PUBLIC PRIVATE PARTNERSHIP

A Public-private partnership (PPP) is often defined as a long-term contract between a private party and a government agency for providing a public asset or service, in which the private party bears significant risk and management responsibility (World Bank, 2012). It relies on the recognition that public and private sectors each have certain advantages relative to other in performing specific tasks. The responsibilities of the private sector could entail finance, design, construction, operation, management and maintenance of the project.

PRIVATE SECTOR

According to my understandings PRIVATE SECTOR ORGANISATIONS are better in our country because they are providing goods and services effectively and efficiently to the people.

I guess in developing countries like PAKISTAN Private Sector organisations earn profits because they are doing  business and they had invested lot of money in this but it is also true that these organizations are doing best.

If I talk about the Non Profit Organizations like EDHI Foundation ,Sayalani international welfare trust, they are providing very basic and fundamental services to the society.The private sector plays an important role in the economy through the following functions:

Ø Job creation through generating employment opportunities within private companies

Ø Contribution to tax revenues and capital flow through the economy

Ø Provides goods and services to both consumers and businesses

Ø Attracts investors both domestically and internationally

Ø Enhances business diversification and competition between companies

Ø Essentially, the private sector is a fundamental component of a free economy, driving development through business opportunity.

 

REFRENCES

ADB (Asian development bank)

https://www.indeed.com/career-advice/career-development/private-sector

https://www.wallstreetmojo.com/private-sector/

https://www.privacysense.net/terms/public-sector/#:~:text=The%20Public%20Sector%20is%20usually,provided%20by%20the%20public%20sector.

Brain storming

Own under standing

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 

 

 

Public Sector Only Solution for problems of Pakistan.

 

PUBLIC SECTOR

 

The most suitable system to be executed in Pakistan is Public Sector. Country with very much diverse nature, inhabitants from different cultures and traditions gives strong sense of central united system. 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. Diversity and pluralism gives place beauty of garden filled with different flowers and everyone being around. This garden is how ever took care by one gardener who is strong to counter all the external invasions which may cause distraction to garden i.e. Government.

Public sector with strong institutions however is the only solution to problems of country. Country from north to south and east to west full of colors which need to be framed in a picture with a meaningful purpose. Public sector can be that regulator which not only just make it able to fill the requirement but build a nation. Public sector organization which we needed is as follow;

1.      Education: A centralize education system build up the narrative and mindset of people of that country. It makes them realize the responsibilities towards the country. Education being a fundamental human right should be same across country, which gives sense of equal opportunities. For example 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. 

2.      Health: Health is the wealth, indeed this caption address why this sector needs to be public. Citizen with the healthy minds and bodies will play vital role in running of country successfully. Private mafia’s making it places of money printing and personal gains. For example government hospital’s and laborites.

3.      Infrastructure Development: Resources plays key role in development, private firms using illegal means extract resources from places leaving behind no any changes in development of people of that places. As we had experienced in colonial system where tons of resources being stolen by private companies leaving behind nothing but poverty. For example Motorways, airports and tourists spots.

4.      Social welfare: Poverty being one of the leading issue of this region from decades. Being rich with resources still not able to delivered ways to tackle this issue need why public sector is important. Programs that work in inclusive growth and raise life of poorer segments reasons national growth. Programs like BISP helps people to raise their lives with no resources with scholarship for educations and small business loans.

5.      Transportation: Inflation has very direct link with transportation. Due to globalization flow of goods and services being very normal and country with higher fares of transportation however discourage moment of people for different means. High speed transportation means higher means of income with less wastage of resources. For example Metro Buses and Government buses for schools, colleges and universities where affordable transportation provided.

6.      Business: Country has some economies which needs a regulations else it will turn out to be jungle where market work as accordingly their own means. Profits will be the targets by any means which will causes disastrous situation in country. Market with set marks indeed very much requirement due to monopoly of few market companies just like Toyota and Suzki in Pakistan who raises prices as accordingly.

7.      Agriculture: Food is the basic need for survival of human being on this Earth. Many experts are of opinion that world war 3 would be food shortage as the hike of population has been seen in last few decades. It would be very much hard for countries without centralize system to address this issue. As we have example of sugar and wheat scandals in past years how private companies build temporary demand and civil unrest build within country.

8.      Tourism: Globalization makes ways for people to interact with each other for different purposes. Internet has connected person of one corner with person of another. Exploration and entertainment means make people to visit each other. This has become one of the mean of earning for country. Where some countries’ economies has only rely on tourism. For example mountaineering, summer holidays on beaches and educational institutions.

9.      Water: It is basic necessity of life. Countries facing huge water crisis where private firm getting great profit margin e.g. Karachi tanker mafia. Pollution not only disturbing wild life but also whole ecosystem of which human is also a part. Water reserves country need to fulfill life requirement but also fill other requirement life construction and industrial. E.g. dams and barrages etc.

10.  Justice and Police: No country can be run without any rules and regulation. Accountable and transparency in a country makes it sure that right person is for right job. Without any regulatory body it is hard to manage the affairs of country because human by nature has unlimited needs and to fill that he try to do anything. Survival mindset needs a system where needs are being put a barrier which will make society balanced and at large society needs are being address e.g. civil court.

Blog by: Afaq Sarbaz (BS 6 Morning)