Public Administration Notes

• How to read an Act

• Policy Making Cycle and Planning Commission
• Budget
• Public Personnel Management
• State owned Enterprises
• Public Administration & Accountability
 Act no X of It is the 10th law passed by the parliament in 2017 and always donated by
Parlaiment roman
Long title The long title is the formal title intended to provide a summarised
description of the purpose or scope of the Act. It is important because it can
be used in Court to interpret the Act.
Short title short title is the name used when referring to the act in write ups. title by
which a bill is known during its passage through Parliament. this is the name
by which the Act is known (and includes the year in which it was passed).
Preamble This is a preliminary statement explaining why the legislation was thought
desirable. It so the rationale and defines the reason and purpose for enacting
the law3e
Extent Which places in Pakistan will it be applicable, if only Islamabad then it is
means it is a devolved subject and you can check through the constitution, if
issue is devolved yet it extends to whole of Pakistan then must be provided
rationale as Pakistan's compulsion under international agreements
Commencement When will it come into effect, immediately or after some months
Sections Each section has a heading, which is intended to indicate what that section is
about and so may help the reader to identify the relevant provisions more
quickly

Main body with Main body - the main body of an Act is divided into
sections, sections (1, 2, 3, etc.),
paragraphs and subsections ((1), (2), (3), etc.),
definite paragraphs ((a), (b), (c), etc.)
Each section has a heading, which is intended to indicate what that section is
devolved subject- check through the
constituion about and so may help the reader to identify the relevant provisions more
if it a devolved subject and yet extents to the
whole of pakistan, must be orovided with quickly. The main body of an Act may be divided into Parts if it deals with a
internatinal agrements
number of different matters, and Parts may be further subdivided into
Chapters.
Paragraphs Section follows alphabetical order and (a) (b) are called paragraphs.

Definitions (a) (b) Definitions are powerful provisions because they control the meaning of
terms used throughout a legislative text

What is the difference between Policy and Law

Policy
Policies are only documents and not law
• Power to make policy depends on the
subject it addresses (Some policies
require approval of Cabinet others may
require approval of the minister etc.) Ie
• Federal cabinet has given the green
light to the country's first-ever National
Security Policy
Law
• These policies can lead to new laws.”
• “Laws are set standards, principles,
and procedures that must be followed
in society
Power to make Law rests with the Parliament
and any member of the Parliament can
introduce a bill which if passed will become the
law of the land.
Policy: Pakistan forest policy 1991
recommended integrated use of forest
resources in conformity with wildlife
conservation, environmental and social need

power - parliment
any can introduce a bill
power- subject
approval cabinet
minister
 Law: Pakistan Environmental Protection Act,
1997.
Law is bigger than policy

Planning Commission of Pakistan planning development and reforms

• Planning Commission (denoted as PC) is a financial and public policy development

institution of the Government of Pakistan.
• The Commission comes under Ministry of Planning, Development and Reforms
• An apex body and a think tank for the government in the fields of economic planning and
development
• a Development Board was established in 1948 in Economic Affairs Division to deal with the
economic development of the country
• a permanent Planning Board was established on April 20, 1957
• re-designated as the Planning Commission on October 23, 1958
• Composition has changed few times to improve coordination and increase its powers and
now Prime Minister is the Chairman
development board- established in 1948
planning board
Project planning and management

▫ Projects are unique project is distinct and has its own unique set of characteristcis to br fdleivered
special goal and objectives to be delivered
▫ Specific special parameters that determine projects originality and authenticity

▫ have a definite starting and ending point; . The end is reached when the project's objectives have
been achieved or when the project is terminated because its
▫ Temporary in nature; objectives will not or cannot be met, or

▫ Carried out to manifest an organization’s strategic objectives;

▫ Measurable in its costs and returns;
▫
alocated cost
Normally have a geographical location or an area of geographical concentration
▫ The rationale of the projects to be undertaken should cnearly ,enioned
speicif and uniure
tenm in nagtyre end start\ o be clearly mentioned and supported by well-designed development programmes, consident
utilisation
easurable cost
rational: o must be consistent with short, medium and long-term perspective plans of the
clearly c supported well deisgne ddev programs
deicjed considtent long term country
resoirces
o For proper utilization of limited development resources and public money cannot be
materialised in its true letter and spirit economic high griwth and macroeocnoic stability

Construction of Peshawar Karachi motorway

▫ shall reduce the traffic congestion drastically, particularly on n5 highway

▫ undertaken by China construction company in the world. Imporvig Pak China relationships
▫ project has employed more than 9800 local people.
▫ Approved Cost: Rs.298008.47 million 298,000 milliom
final exp
▫ Final Expenditure: Rs.267577.32 million 267,000

▫ Date of Commencement: January, 2016
▫ Date of Completion: November, 2019
PSDP-public sector development programme
After the completion, the original 11-hour drive between Peshawar and Karachi
will be shortened to four hours, thus improving the overall traffic conditions in
2016 january
Pakistan. and is on par with several of the world's leading motorways.
nvember 2019
"Definitely, it is the most comfortable road in Pakistan. And local people believe
that PKM is the road of friendship between China and Pakistan," Xiao said

F- financial otlay
• an annual financial outlay in the form of a document that lists all the public sector projects
form document
public d=seto prgrammes
and programmes with the specific allocations made for each fiscal year;
allocation
• portion of the country's annual budget which deals with development expenditure;
A- annuagl bduget deals e=dev expensitue
I-nfrmation

financial outla
portion of government budget
necesary omfpr,atipm
 total cost
forgin loan comppennt
fate pf approva;
end of the precedingf iscla year

• PSDP document consists of all necessary information pertaining to the projects and
programmes including the total cost, foreign loan component, forum date of approval,
expenditure incurred up to the end of preceding fiscal year and allocation, in terms of both
rupee and foreign aid component, for the respective fiscal year

Importance of PSDP

• PSDP provides much needed physical and social infrastructure in the country for uplift of the
port qasim plant
spcial infractruture
economy objectives link

poverty alleviation
• 22,000 million was earmarked for the installation of 2,600MW Coal Fire Power Plan 2 into 660 mwm
gdp growth
• The 300MW coal-fired Gwadar power plant would cater the needs of some 150,000 local
people by the end of 2023
• The power plant was one of the key energy projects under the China Pakistan Economic
P- povert alleviatin and emp genertaion
Corridor
S- provides pyshcial and socil
D- incres epeding gdp growth
infradtrucyrue(CPEC),
uplift od thehe added. The project is aimed at improving reliability on local power supply
econmy

A-
aligned towards objectiges
that would help to resolve power outages in current economic development and urban
targets of annual 5 yr plan
throughimp priev6s expansion in Gwadar region
• The official also hoped that the discussed plant would be operationalised soon to solve the
port’s power scarcity issues. Power plant is of great significance to deepening the energy
cooperation between China and Pakistan, boosting the development of the Belt and Road
Initiative, improving the overall power structure of Baluchistan, and promoting local economic
development in Gwadar Port.
• PSDP is source of employment generation and poverty alleviation
• Increase in PSDP spending results in corresponding increase in GDP growth.
• PSDP is aligned towards objectives / targets of annual / five-year plans / vision through
implementation of viable projects

all of Rs2.1 trillion have been proposed for the Public Sector Development Programme (PSDP) for the
fiscal year 2021-22 by the federal government, with Rs900 billion for federal and Rs1.235 trillion for
provincial development programmes
princplal acc officers
sectrtayr of minstry
PSDP Cycle

• Development Expenditure Budget Estimates to be finalized by Principal Accounting Officers/

Secretary of Ministry concerned
• The M/o PD&R has been entrusted with the responsibility to authorise release of
development funds to the PSDP-funded projects budget estimate- rincuple ac officers
• Allocations are released in a quarterly basis sec of ministry cncerfne
release- ministry of planning finance and reveneu '
allocaitons quartry nsis

PSDP:
The development projects are prepared on the approved format, that is, PC-I proforma. Five PC
proforma (PC-I, PC-II, PC-III, PC-IV and PV-V) along with proforma for summary for the ECNEC and
working paper for the CDWP, for new projects and revised projects

Project Cycle: Planning, Implementation, and Monitoring Cycle, adopted for the PSDP funded
projects, is represented in figure-2
 Pc Identification and Feasibility study and preparation of projects
FORMULATIOM
1/pc evaluation
2
Appraisal and Approval and authorisation
approval
pc3 implementation monitoring and controls and activation
pc4 completion closure
pc5 Ex post evaluation Annual operational report and verification of income
output and impact
Role provides timely and useful advices / guidelines feedback and systematic collection and analysis
of information as the project timely completion of the projects. Effiecinet utilaidaiton
resources imn
keep the work on track, and can let management know the problems and help them in taking tansparent manner
feeback'gudilejesn
necessary corrective actions. It enables to determine the efficient utilization of the available
resources being used in a transparent manner.

Monitoring & Evaluation According to the ECNEC decisions, Planning Commission is responsible for
third party monitoring and evaluation of PSDP Projects

comparison of the actual project outcomes against the planned target. Looks at project items
deliverable in terms of input output comparing them with the actual accomplishments

sees. Planning Commission has also started mid-term & ex-post evaluation of ongoing and
completed development projects for assessing their efficiency, effectiveness, relevance, impact and
sustainability in relation to planned targets, goals and objectives. A number of completed
development projects Ministries/Divisions/Agencies, of different are being evaluated since 2006,
which was almost nonexciting earlier. The approach of project evaluation was progressed to the
program evaluation and subsequently to the institutional evaluation. The recommendations
contained in the evaluation reports are mandatory for implementation by the
Ministries/Divisions/Agencies.
APPLICATION OF A POLICY MAKIG

1- Problem identification
issue
Shipper glacier flooding natiureshort tem lomg term
hisyrycal evalutaion
• Nature: disaster & disaster response
• History: is it a recent phenomenon? 4has
times in 2 years
damaged bildings trhe houses 2 power plants and
• Identification of the Stakeholders: local community, local & provincial administration
local citiszens buainessman

Problem identificaiton ifaie

policy formualitron i fai extremely hot
policy adoption'o polcy aking
policy implemnetiOn
policy evaluation
 • Short-term: evacuation
• Long-term: prevent future events

why
2- Policy formulation how tourism is impacted and tourists are
blocked a s the bridget ahs been
Discussion & debate among stakeholders destrpyed
discussion amomng debate amomg curgig od the trees and deforetaioj no
forest cover and nor oots to hod the soil
• Encroachments the stakjeholders abiut relocation
pop gwoth
oeole and
• Trash dumping site
• Population growth
• Greenhouse gas emissions tourism'trahs dumtoung
encroachmentrs
• Tourism curring trees
increase in staff
• Cutting of trees Raise in salaries of existing staff
Increase in utility bills
Inefficient technologies
Discussing the responses of previous questions Increase in perks like car+ fuel etc.
3-Policy adoption Design appropriate policy Increase in publications
Increase in seminars etc.
Alternative policies evaluated & best one selected

4- Policy implementation

• Coordination & communication between all stakeholders to implement the chosen policy

5-Policy evaluation
less burning of h=fosisl fuels fo eles grenmshous effect
• How far the policy met its objectives

ECONOMICS AND BUDGET- Mcq key characteristics

• The British economist John Maynard Keynes showed how government spending could be
critical in managing an economy, by stimulating demand when resources were underutilized
and unemployment was high.
• His thinking created the notion of budgetary policy as an instrument—in some respects the
primary instrument— by which a nation could execute macroeconomic policy.
• Hayek’s book, which can be condensed into five words—government planning leads to
dictatorship because iz e most effective instrument of coercion and the enforcement of ideals and, as such, essential if central
planning on a large scale is to be possible

Objectives/Dimensions of Budgets

• Allocation: Ensuring that an appropriate level of funding flows into sectors of the economy
where it is required.
• Distribution: Ensuring that the balance in public funding between regions, between classes
public vs pribvate
of people in society, between public and private sectors, and between government and gvt b\and buseiss
business reflects public policy. r
regions clase
• We should keep in mind the distribution and redistribution so the welfare is maximised Ie refeckstcv
wheat price increase so keep in mind that doesn’t burden all
• Stabilization: Using public spending to stabilize the macroeconomy (or in some cases parts
of it)

Allocation
Accountability
Stab
Dis
Rs589.9 million has been allocated for the Poverty Alleviation and Social Safety Division. Similarly,
Federal Minister for Poverty Alleviation Shazia Marri distributing cheques among deserving women
under Interest Free Loan programme by Pakistan Poverty Alleviation Fund.
• Growth: Using the power of government spending to facilitate economic growth and wealth
creation.

Rs3.55 billion have been allocated for the Aviation Division, Gwadar International Airport will play a
major part in the development of infrastructure in Pakistan.

The new airport will strengthen Pakistan’s position as a future aviation hub.

It will also reduce the country’s dependence on other regional airports, shorten flight distances and
reduce fuel costs, lead to increased economic activity.

New Gwadar International Airport NGIA Project. the airport will help jump-start the process of trade
and commerce throughout the region. It will increase trade between China and Pakistan, as well as
other countries

• Accountability: An accounting instrument that holds government officials responsible for the
expenditure of the funds with which they have been entrusted.

Pad allocation of the billion-tree tsunami project ‘Ten Billion Tree Tsunami Programme’ of the PTI
government, and has earmarked Rs9.45 billion under the PSDP 2022-23 sindh forest deparmtn has been
allocated with the fundd miilions kf
dllars as salare but when asked
Key Characteristics of Budgeting System cover a=u to sot the iability of
Annularity: Prepared every year; covers fiscal year for Pakistan it is every 1st July cutting of trees
AUU
Pakistan fiscal year starts at 1 July

Unity: Public revenue, expenditure and financing are considered together to determine annual budget targets.
Presents a consolidated picture of the fiscal operations of the Federal Government.

Universality: All resources form part of a common pool which comprises Federal Consolidated Fund and Public
Account. All the money should come from the same source
FCF AND PA

The main issues preventing effectiveness & efficiency of public expenditure in Pakistan
%. The increasing tensions between India
and Pakistan post-Pulwama and the
money ti be oad by the hoevrmnet Kashmir issue are one of the main reasons
Large recurrent expenditure behind this increase in defence spending.

National security threats little toom for public investjment in infratsrcur ean
dhuman rsurce dev
Natural disasters

• The Government of Pakistan has announced a Rs1. 2 trillion economic relief

packages to help support businesses in response to the Covid-19 outbreak.
• No allocations have been suggested for the Covid-19 response and natural calamities in the
upcoming financial plan for the fiscal year 2022-23. However, the finance managers are
proposing to set aside Rs2.42 billion for the aviation division.
• leave little room for public investment in infrastructure and human resource
development

Weak monitoring and evaluation of projects by PC

• Pakistan spends billions of rupees in infrastructure development projects through PSDP every year
asad omar. federal planningminister

weak Monitoring Evaluation (ME) system in Planning Commission always resulted in

delay/inefficiency in PSDP projects implementation, causing massive overrun, increase in
cost, and wastage of taxpayers’ money as well.
 Pakistan had the largest number of less than successful projects (7 out of 12). ADB PROJECTS

• these projects are delayed due to bad planning and a lack of proper monitoring and evaluation
mechanism. Delay in completion of projects results into time over-run, which leads to cost over-run
thus putting unnecessary burden on the national exchequer.
• M&E system ensures strong check and balances on the responsibilities and its absence breeds
corruption. The basic purpose of monitoring and evaluation is that it helps learning from past
experiences, improves service delivery and provides better planning and proper allocation of
resources. The development community strongly believes in results, which reflects the accountability
to key stakeholders.

Duplication of development programmes

• It takes place when similar projects addressing similar propjets addressing similar
issues are approved which leads to duplication
• Example climate change ministry this year proposed a project on drinking water
whereas similar schemes also included in ministry of water respires PSDP

Public Expenditure-Situational Analysis

• Federal Government’s expenditure on
o Debt servicing
o Givenement6 has earmarked trillion for interest rates and repayments on
domestic and foreign loans (debt servicing)
o . The government spent a huge amount of Rs3.555 trillion on public
debt servicing
o The public debt of an economy increases when it is unable to meet
its expenditures through its own resources (tax and others) and to
bridge the gap (fiscal deficit), it borrows more from local and foreign
lenders
o Defence
Interna and external security measures

Pakistan still deploys thousands of troops to deal with the threat of

terrorism. Similarly, the tensions between Pakistan and India
Salaries of public sector employees-
o According to the budget 2021-22 480 billion allocated to pensions Assistance
Fund e, Full pays an allowance of the families so the government till the day
of superannuation,
o Free education to all the children of the deceased government employees up to graduation in any
public/ government educational institution including expenses of tuition fee, books related material
and living allowances etc.

Marriage grant of 0.80 million of the maria Eo Fone daughter

o Government’s support to loss making public utilities
o Costs of untargeted, hidden and cross subsidies
untargeted subsidies require higher levels of taxation than are necessary to achieve the
desired policy objective. I
The Metro Bus service in major cities of Punjab is another example of a subsidised
programme. Such types of subsidies are called untargeted subsidies. These directly
contribute to increase in inequality
 In the past, the government has run programmes like Sasti Roti. The Metro Bus service Under
the Sasti Roti programme of the Punjab government in 2008, the price of bread was restricted to
Rs2 per piece. All individuals were paying the same price whether those living below the poverty
line or those having earnings well above that threshold.
Unfortunately, even after decades and trillions of rupees in subsidies for major industries of
Pakistan, these industries have failed to record sustained growth

(2009 study identified Pak’s policies taxing farmers and supporting wheat millers)
FEDERAL BUDGET
Such types of subsidies are called untargeted subsidies. These directly contribute to increase in
REVENUE: inequality. Even an individual who can easily afford market prices is also enjoying the benefits of
cheap rates. Subsidised industrial inputs distort the price mechanism. This promotes perverse
• Tax Revenue economic decision-making on the part of economic agents which cannot be sustained in the long
run.
o Tax collected by FBR
o Petroleum, gas levy etc.
• Non-tax Revenue
o Dividends from SOEs
o Profits of SBP
o Royalty from oil & gas
o Income from services provided
EXPENDITURE

• Current
o Debt Servicing
o Salaries and pensions
o Subsidies
• Development
o PSDP programmes Ie the tree tsunami, the Karachi Peshawar etc
o Ehsaas programme

the government has allocated budget for poverty alleviation and to

provide relief to the low-income people through Ehsaas programme
“Through Ehsaas Kafalat Programme, providing this financial facility in 124
districts to the low-income people in different regions of the country.,
‘Ehsaas undergraduate programme’ was also approved to provide
thousands of undergraduate scholarships to students from different
regions of the country in the upcoming budget.
Financing of Budget Deficit
• External borrowing
• Domestic borrowing from SBP
• Domestic bank borrowing from commercial banks
• Non-Bank Borrowing
 policy setting
preparation
1- Policy setting authorisation
implemnetaion
reporting and monitroing

Policy setting
2- preperation Prep
Auth
Impl
Rep n monitoring

Policy setting 28th Feb statement laid in the national assembly

as required by the public finance management
act 2019.
Preparation Ministry of finance, spending ministries
Authorization
Implement Cabinet national assembly, president
Reporting and monitory Ministry of finance, spending minstries4
Review PAD, spending ministries
The end there is a meeting and review takes
place where have the planning commission,
Finance ministry
31st march there is meeting and review take
place where have the planning commission Nd
finance ministry
Understanding and Budget Documents

Budget Speech

• The speech is of 2 hours

• The speech is given By Finance Minister/ someone authorized by Leader of the House
• Review of economic performance

Annual Budget Statement-

• It is in article 80
• The Annual Budget Statement is presented in the National Assembly of Pakistan by the Minister of
Finance every year
• Writes the expenses and revenue of the government
• The Federal Government is responsible and it is laid before the National Assembly
• statement of the estimated receipts and expenditure of the Federal Government for that
year, in this Part referred to as the Annual Budget Statement
• The Annual Budget Statement shall show the sums required to meet expenditure described
by the Constitution as expenditure charged upon the Federal Consolidated Fund; and
 • b. the sums required to meet other expenditure proposed to be made from the Federal
Consolidated Fund; and shall distinguish expenditure on revenue account from other
expenditure.
• The rules and regulation of the National assembly also suggest that on the day the Budget is presented,
no other business, including questions, calling attention notices, question shall be transacted except
introduction of Finance Bill.
• Budget not to be discussed on presentation: Except for the speech of the finance minister when
presenting the Budget, there is no discussion on the Budget on the day on which it is presented to the
Parliament.

Budget in Brief

• Review of current year’s budget

• Salient features of next year’s proposed budget. Economic Survey of Pakistan
• The Budget-in-Brief attempts a presentation of the budget in a simple language. This
document contains the brief features of revenue/ expenditure. It also contains the main
features of past year achievement/ performances. This document is printed both in Urdu and
English
The Economic survey provides the assessment of overall performance of the economy during
Economic Survey of Pakistan the year along with the background knowledge of the financial developments in the countr

National Finance Commission (NFC)

• it is constituted by the president consisting of the Minister of Finance of the Federal
Government, the Ministers of Finance of the Provincial Governments and such other persons
as may be appointed by the President after consultation with the Governors of the provinces
• NFC to make recommendations to the President on:
o Talks about how there will be the distribution of taxes between the Federal
distrubitoj n
federation government? Federation and the province. Ie if borrowing between each other or
and
provinces
federal government, how to be done
the net o The making of grants-in-aid by the Federal Government to the Provincial
proceedd tax
Governments;
o The exercise by the Federal Government and the Provincial Governments of the
borrowing powers conferred by the Constitution; and
o Any other matter relating to finance referred to the Commission by the President.

Public Finance Management Act, 2019

• It manages and strengths the management of public finances, how to take and utilise the
public finances including checks and balances of the government so it manages the public
finances smoothly
• improving implementation of fiscal policy for better macro-economic management,
• to clarify institutional responsibilities, and
• strengthen financial and budgetary management

Fiscal Responsibility and Debt Limitation Act, 2005

• To provide for reduction of Federal Fiscal Deficit and ratio of Public Debt to Gross Domestic
Products (GDP) to a prudent level by effective Public Debt Management
• One of the checks and balance top ensures you downvoter borrow
 after the
budet soeech
annual bhdvget sttament
budhet brief

No taxation without representation

• Budget is introduced in the National Assembly as a Finance Bill under Constitutional

requirement
• Senate can only make recommendations which are debated in Senate’s Standing
Committees on Finance & Planning and within

Problems with Budgetary System

1- Limited role of Parliament

o Government wants to pass it within 1 month of introduction in National Assembly so
little time. The budget is released on the first week of June and senate has to pass
till 30 June. There is less than a month to debate on the budget
o Senate can only make recommendations which are not even binding
2- Inadequate participation of citizens
3- Bureaucratic Exercise
4- Tedious Processes
o Line wise review very difficult
5- Supplementary Grants: article 84
• The amount authorized to be expended for a particular service for the current financial year
is insufficient, or that a need has arisen for expenditure upon some new service not included
in the Annual Budget Statement for that year;
• Money has been spent on any service during a financial year in excess of the amount
granted for that service for that year;
• need permission for supplementary grant. They shouldn't give it and if not approved then
the project stays in between.
• It is the additional grant required to meet the required expenditure of the government\
• In 2019, r major supplementary grant was sought for the Ministry of Federal Education and
Professional Training.
• The finance ministry also issued supplementary grants to the aviation division to meets
expense overruns by the Airport Security Force

6- Excess expenditure also given approval in a rush

Relevant Legal Provisions name 2-3

• Constitution of Pakistan, 1973
• Federal Treasury Rules
• Rules of Business, 1973

Federal Consolidated Fund Vs Public Account

Custody of the Federal Consolidated Fund and Public Accounts of the Federation shall be regulated
by the Parliament

• Federal Consolidated Fund

o All revenues received by the Federal Government
o all loans raised by that Government
 o and all moneys received by it in repayment of any loan shall form part of
consolidated fund to be known as the federal consolidate fund
o When return or loan or if any loan is granted
• Public Account of the Federation
o Money received by or deposited with the Supreme Court or any other court
established under the authority of the Federation shall be credited to the Public
Account of the Federation.

Organizational Structure of the Accounting System

• The Accounting Side
o The Auditor General of Pakistan & the Controller General of Accounts (CGA)
o The Auditor General Pakistan Revenue (AGPR)
• The Executive Side
o The Principal Accounting Officer= Secretary of Concerned Ministry
o The Drawing & Disbursing Officer

Public Personnel Administration (PPA)

Public Personnel Administration is a branch of human resource management focusing on the

o Acquisition;
o Utilization;
o Compensation; and
o Development of a public organization’s workforce

Its purpose is to keep personnel way that organisation meet its objectives

If they don’t work properly then opinion about the government deteriorate, even if it is one
person's only

Importance of PPA
• Work of government depends on workforce hence it aims to employ and develop employees
for the benefit of thru organisation since they are an important asset
• Ensure public organization has competent staff to carry the tasks of the organising
• Improve contribution of public servants

Entry into Public Service Political Appointees- Cabinet Level

• General Civil Service System- through competitive exams
• Career system outside General civil service system

ENTRY IN THE CIVIL SERVCIE

Political Appointees- Cabinet Level

General Civil Service System- through competitive exams
Career system outside General civil service system
 JOB
DADS
PPASCO

Yō sees the job requirement Abd determine which type of job you need Ie, a forest officer at
Margallo hills

Determination of qualifications: should be a chairperson with experience in national park, climate

environment. If they have worked in national park, it will be more advantageous

Advertisement:

You will have an age relaxation Ie 40/50 years and not 65 and then make an advertisement and
specify the requirement

Shouldn’t have a stringent criterion, as no applicant will come

Scrutiny of application:

You should scrutinise the applications

Ie, if one is in park, one involved in the policy made of the forest then you should scrutinise and e

Placement

Examination and interview should be taken and medical rest see and no conflict of interest should
exist while doing the placement

Probation

Check and balance meaning that if they work for a one year period they have to follow certain sops

District minister is tenure specific and if their performance is not up to the mark then they have the
right to fire you

Kept so that the organisation has the margin to get rid of the people who don’t perform well

Appointment

Selection

Conducting examination

Orientation

You take them in park visit

Constitutional/ Legal Provisions

 • Article 240 of the Constitution provides basis for Civil Services at federal & provincial level
• Civil Service Act 1973
o Provides legal basis for civil services
o Applies to all civil servants

Overview
Total 1-22 classes
• All jobs in the Federal Government are classified in terms of grades ranging from 1st
to 22nd called Basic Pay Scale (BPS)
• Grades 1-4: unskilled tasks Ie guests providing tea, mess Chacha
• Grades 5-15: clerical tasks Ie numbering of pages, recording a tallying the files and
typing or the dictating staff
• Grade 16: Superintendent (Overseeing 1-15)
• Grades 17-22: Officers, Ie they are on the policy side
22- secretary of the ministers and special secretary
Central Superior Service Examination Prerequisites
o Written Exam
o Medical Examination
o Psychological Assessment
o Viva Voce
o Max Age 30
o Citizen of Pakistan/ AJK
o Minimum Bachelor's Degree

Central Superior Service Examination

• Entry in BPS 17/ Grade 17

• In any one of the 12 occupational groups including
o The Commerce and Trade Group (CTG)
o Information Group (IG)
o Postal Group (PG)

Training & Development of Public Servants

 CSS – step special training for the department which is od 6 months
To move from 18 to 19 grade you need mm training
Move from 19-20 SMC has to do training
ADVV PROMOTION
20 onwards you need NMC training Seniority Principle: length of service
Merit Principle: performance
Seniority cum merit principle: both

Issues with public personnel management in Pakistan

• Generalist model:
s a problem Presently, government of Pakistan is following a generalist model for the Secretariat,
solving model whereby, career civil servants rise through the ranks and hold the position of the Federal
in social work
that is most Secretary.
often used in
the social • These position in Secretariat starts from the induction level at BS-17, which is known at
work Section Officer.
profession.
• This gives rise to mismatch between the core competencies of the officer and the
requirements of the job. Under the present system, an officer having background of Finance
may end up in Religious Affairs or Culture Divisions

Means that our secretary of grade 22 that heads the organization are not competitive heads and
during the course of service, choose and prick for different organisations. Since the secretary is the
minister head and if he is not competent, he doesn’t know everything. Ie if he hasn’t read a word
about finance and has only the Knowledge of the briefing not okay. For climate change you need to
have knowledge and briefing is not enough aloe

Carbon theory: the skill set is compromised and a broad skillset is required rather than a narrow one

Huge reliance on support staff

• The total strength of the civilian employees at the Federal level was 491,860 in 2009 and has
risen to 663234 by 2019—an increase of 35 percent.
• 85 percent of the total wage and salary bill is claimed by the support staff who account for
95 percent of the total employees while 15 percent goes to the officers in Grades 17-22 who
form 5 percent of the total strength
 • Typing, file maker and no need to have so many people in the office
generalist
Risk averse rely
risk
polticose
• Civil servants have become risk averse and avoid taking timely decisions.
• Fear of inquiries by opposing political governments leaves little incentive for civil servants to
show initiative and undertake innovative project

Prioritisation of civil service decision making

POLITICISATION
• Politicisation- Political Interference has reduced the effectiveness and professionalism of the
civil service.
• The threat of frequent transfers and unfavourable postings acts as a disincentive to restrict
political interference.

How to solve this issue?

Issues with currency system and way forward

CURRENGT
• The tasks should be computerised
• Then those people who are removed and free, the government building space can be rented
and a lot of rent will be generated can be given to those people so their situation gets
better.
• The introduction of e-government should reduce the need for support staff which, in turn,
would lower the recurring expenditure of running of the Federal Government
• Cluster of Divisions and the ministries should be in in clusters – specific skill set is given so
their pomace increases
• Officers could be transferred and posted in the same cluster
• Example
o CLUSTER A: Technical Ministries / Divisions I) Aviation ii) Communications iii) Climate
Change iv) Housing & Works v) Information Technology vi) Law and Justice vii)
Maritimes Affairs viii) Power ix) Petroleum x) Railways xi) Science and Technology xii)
Water Resources
o CLUSTER B: Economic Ministries / Divisions I) Commerce ii) Economic Affairs iii)
Finance division iv) Industries v) National Food Security vi) Planning, Development
vii) Privatization viii) Revenue
• State-owned enterprises
they (SOEs) are classified as those enterprises in which the state exerts
significant control through full, majority, or significant minority ownership. This
definition includes SOEs that are owned by the central or federal government as
well as the ones owned by regional and local governments (Sturesson, McIntyre,
and Jones 2015) state experts
ignificant ckntro
owed central
SOE landscape
• At Independence, Pakistan inherited 12 SOEs
• This number rose by a bit in the 1950s and 1960s as some development authorities and
corporations (e.g., PIDC and WAPDA) were established.
 • Then an explosion in numbers took place in the 1970s with the nationalization of large-scale
industries, banks, insurance companies, and educational institutions.
• A process of reversal eventually began in the 1990s.
• Between 1991 and 2015 as many as 172 privatization transactions were completed.

Most companies were nationalised in 1970

Timeslot for privatisation 1991-2015

Active privatisation- 1991-2015

213 federal level soe and 85 commercial and 44 non-commercial. 84 subsidiaries

Include transportation and railways, engineering, service sector Ie water supply and medical and pack
steel mill

• Soe account to the total employment at under 1 percent.

• In Pakistan, the majority of SOE employment is in gas- WISCO and electricity sector
• in Pakistan a large share of SOEs is loss-making total
• there are 213 federal-level SOEs operating in various economic sectors, made up of 85
commercial SOEs, 44 non-commercial SOEs (trusts, universities, training institutions, and
welfare funds), and 84 subsidiaries of commercial SOEs

Importance of SOE

• SOEs are different from private enterprises in that they are often granted favourable
emplyemeny genertauon treatment such as subsidies, debt waivers, favourable loans, and protection against
bankruptcy. As such, they are also expected to provide pivotal public goods and services to
their citizens, which is often not financially profitable. Since we know that the private sectors
aim and objective is profit maximisation so they have an incentive to produce goods as they
public s delivery are not financially profitable. The population's access to water, electricity, sanitation
and transportation is almost entirely dependent on the state.
• triple role of the government as the regulator, enforcer of those regulations, and owner of
SOE assets in their respective country can sometimes undermine the SOEs’ competitiveness
and efficiency because of corruption, mismanagement, and technical incompetence of their
staff. oenwr of soe asers
power s am endoes of policies through pwoer
owner and can elad prolems SPILL OBVER EFFECTS OF SOE
Some examples

Despite their important role in the economy, financial performance of many SOEs is weak, with one-
third of them consistently generating losses. the top ten soe contributing to loses include national
highway authority, power sector distribution companies (DISCOs), Pakistan Railways, and Pakistan
International Airlines that owns the Roosevelt Hotel in New York and the Scribe Hotel in Paris are
among the major ones.

One concern is that many SOEs tend to have relatively weak performance which can have
macroeconomic implications: IIneffetive- poor;ymanaged unreliable provision of resources

• SOEs are the dominant in the provision of water and public transportation and electivity. If
the state-owned enterprises are ineffective and unreliable affecting the economic sectors and
industries well as the economy. We can see since that are the providers of electricity, poorly
managed soe can lead to unreliable provision of services Ie there may be power shortages r
 electicity, lain off and henc lerss empoormrnt

ineffecto and
unreliable- unrelaible high input cost. We can also witness how there and there is widespread loadshedding in daily
proviisokn of servcide
life. Prime Minister Shehbaz Sharif increased electricity load shedding in July. These
undrsupply constant loadshedding affects the industries where they t decrease in the overall sales and
no comeititon ad
missalocation have to lay off workers as well. It can also affect household, for example daily lives impacted.
resources and • Also, not reliable as, if the SOEs undersupply core public services, like public utilities and
producivly loss
transport and ineffectiveness impact us
• If SOEs are less efficient than private competitors but are protected from competition it can
undermine productivity in the economy as a whole. One channel goes through the
misallocation of resources and can be an important source of aggregate productivity losses
(Restuccia and Rogerson 2019; Song and others 2011) no profit max- no copetition

•
undermine roductive
hefty cost to the budget
The main problem is that the government ha sot financially supports the SOEs at a hefty cost
alrge soes losse bail to the budget. A large share of SOEs suffer from persistence loses across all sectors as
governments may need to bail out firms which wouldn’t exist in case of a private sector. They
also pay subsidised and government support is through foreign and domestic loans which
causes increase in the Fregin and domestic debt
• Many SOEs face soft budget constraints as, contrary to their private peers, they can survive
for long with systematic losses. that governments may need to bail out firms. Soft budget
constraints may be exacerbated by complex holding structures, which make them less
transparent and difficult to monitor. Pia and wade are in loss
• Javed Hassan The top ten loss-makers, International Airlines (PIA), Pakistan Railways,
National Highway Authority, account for around 90 percent of the total losses each
year. Despite attempts by successive governments to turn them around, they have
failed in making these entities even break even.
• The risks from the sheer size of SOEs operations implies potentially large risks including the
credit and operational risk (Figure 2).
• \circircularcler debt is another issue as if debt is not played the government body if becomes
greater
• The risks are exacerbated by three is e limited transparency on their operations and there is
no s financial accountability in the process of staffing and recruiting and it is not based on due
diligence, instead they are nut hired on outer motives and not for reorganisations benefit and
how they can impact the health of the overall public sector.
• Moreover, since they know they will be saved by government, Soe therefore are inefficacies
and lag knowing they will get away and these the losses result into dependence on Gopp
support or lead to gradual erosion of eye. Budgetary grants to Railways and other enterprises
are in addition to this amount of Rs. 1 trillion shown in the SOE Annual Report in 2020

What to do with the state-owned enterprises

• The authorities have recently undertaken a comprehensive exercise to examine SOEs based on their
functions and financial performance to identify those to be
o (1) retained under state ownership;
o (2) restructured; and
o (3) privatized

Retain soe

Fulfil Public Policy Objectives- as enshrined in the Constitution through principles of policy
or security of the country (defence) or provision of a service like infrastructure project which
is not commercially viable for a private sector organization (example National Highway
Authority-projects in Baluchistan)

Restricting
There should be restructuring of the railways and human resource needs to be restructured
and there should be skill development of the ones already hired rather than haring new
staff

• Workforce restructuring, including a basis for computing early retirement

compensation, rehabilitation and retraining of displaced employees; Rationale
Workforce at Pakistan Railways
• business-restructuring measures while taking into account existing or new
businesses, existing or new technologies, and keeping in view environmental issues,
investment requirements, and emerging market trends over the next 3–5 years;
Freight Trade
• financial restructuring measures that include debt restructuring, capital
restructuring, and financing investment plans;

Privatisation of soe

• Evidence from OECD countries also strongly suggests that privatization leads to
“significant” increase in profitability, real output, and efficiency of privatized firms
• Across the globe t is very difficult to end soe and according to IMF studies, they do
exist in China Asia and Africa and by virtue can't end soe
• Even in 2008 financial cirri's the government bailed out many private companies an
at the emend of the day government has to step up
• However, efficiency gains from privatization are largely dependent on continued
political commitment by the government to overcome bureaucratic inertia, ensuring
a transparent privatization procedure, clearly delineating privatization motives and
goals to the concerned stakeholders, and allocating the necessary human and capital
resources to achieve those goals
• Overall have to find a middle ground
why privatisation may not be best for developing countries

• Most SOEs, especially in developing countries, are not just expected to be financially
profitable, but are also tasked to provide crucial public goods. (Like provision of
clean water, electricity, and sanitation services in remote towns and villages), might
not be as financially profitable as they would be in big towns, but they are equally
essential for both sets of populations.
• Unpopular for governments in developing countries to remove subsidies and charge
market rate.
 lack of legoslariton ion areas and is a matetry l=too litrtle ltoo layte

• Some countries may be unwilling for security reasons to privatize, even partly, their
“strategic” industries—those that a government considers to be very important for
the country’s economy or safety (Cambridge Dictionary 2017).

These issues, among others, suggest that privatization of SOE shares might not always best
option
Pakistan state owned enterprise act 2021

• introduced in the National Assembly but not yet passed

• The Federal Government owns and controls a number of SOEs established under various
laws and incorporated under the Companies Act, 2017.
• Clause 4 that the shareholding responsibilities of the Federal government with
respect to its state-owned enterprises are clarified
• One act covering all the aspects of the state-owned enterprises
• They will see which are important immigrate a then negotiate on the
important aspect and then keep ones and discard the rest
• In order to ensure
o Good quality of services
o Fiscal discipline
o Improve Accountability

Governance
• ‘The manner in which power is exercised in the management of a country’s economic and
social resources for development.’
• Governance consists of the traditions and institutions by which authority in a country is
exercised. This includes:
o the process by which governments are selected, monitored and replaced
o the capacity of the government to effectively formulate and implement sound
policies; and
o Effective functioning of institutions that govern economic & social interactions
among citizens and the state.
o and the respect of citizens and the state for the institutions that govern economic
and social interactions among them.

5 dimensions of governance

• Efficiency: govt’s ability to est. predictability in the institutional and policy environment.
Also, clear prioritization of govt. services with respect to citizen's needs & preferences.
• Equity: existence of a fair and just legal system which provides access to all. Equitable
PATEEE distribution of public services to all.
• Transparency: availability and clarity of information provided to general public about
government activity.
• Accountability: establishment of a criteria for evaluating the performance of public sector
institutions.
• Participation: engaged civil society, media, etc.

Indicator producer and purpose

 INDICATORS OG GIEVRMNETS

ShWO HOW MUCH freedom on country

1. Annual Survey of Freedom
• Producer: freedom house
• Purpose: The survey is designed to measure progress in developing political freedoms

2- Corruption Perceptions Index

• Producer: transparency international
• Purpose; To provide data on ‘corruption in international business transactions

3- Governance Matters I-III (KK)

• Producer: world bank Insititute
• Purpose: to provide periodic cross-country point estimates of six dimensions of governance
•
i. ‘‘voice and accountability= how those who are in authority are selected
ii. ‘Political stability and absence of violence’= likelihood of govt being destabilized
iii. ‘‘government effectiveness’’ relates to quality & provision of public service
iv. ‘‘regulatory quality’ type of policies voice
pol
v. ‘‘Rule of law’’- citizens abide by laws gov
regulatory
vi. ‘‘control of corruption,’ rule of law
• Features of accountability: control
simple ask whos axation
It is external: Account is given to some other person.

• It involves social interaction and exchange One side seeks answers and rectification while
other side responds and accepts sanctions
• It implies rights of authority: Those calling for an account are asserting rights of superior
authority over those who are accountable
• Perspectives on accontbaikity Accountability has been traditionally viewed in terms of
re[sonisve to • How can parliamentarians scrutinize the actions of government including public servants and
make them make them answerable for their mistakes?
repsonibsle
actionshspoial s • How can voters make elected representatives answerable for their policies?
hospotals patient • How can members of the public seek redress from government agencies and officials?
reposnensess
• Concern for the public interest expected from public servants
• Views accountability as responsiveness :
o The extent to which governments pursue the wishes or needs of their citizens
o Two distinct relationships between officials and wider public:
o Public agencies are expected to be responsive to elected officials
o Agencies providing services should be responsive to the needs of their clients

Main sytem of administrtaive cintrol

• Internal Control natur eof edrvvie

test at hoe
o operates within the administrative organization paramtere for respomsiveness:
vome kt not
o Hierarchy in an organization hierchay and deciison to to he botton reponsivene trietrate phjone
o Annual Confidential Reports need follow
Folow authoritt
o Budgetary Controls ACR- have a oerformance rveeiw of how u work
• External Control
o Works within the general constitutional framework of the system.

not org spcificif

budgetraty control- how the budfet ia aewnapent, money spemt consitutinaly guarneted
apent ornot
vilte the law in vontent
 legislation- by arliment and the parlimentaran
can ask any in parliment quetsion from nminister- hjow mnay appl kpk hajj
money hakk
r

o Exercised by external bodies like legislature (Question Hour, Calling Attention

anymember senator ot MNA
Notices, Point of Public Importance)
pac o Public Accounts Committee (Review of financial statements of public sector
organizations, parliamentary committee also mentioned in the Constitution=
members from both Senate & National Assembly) publiac acc commmitee-piblic sw org
o Judiciary parl comitte'members
publi orgaisations rofit loss balancr hsetr csh fkiw
o Ombudsman public momney itilised not
dpeth abse discussion financial mattery

Ombudsman

• In the modern world, an ombudsman was first established in 1809 in Sweden. The word
"ombudsman" is of Swedish origin and means "representative or agent" of the people.
• An independent and non-partisan officer appointed by legislature
• Legally established,
• Answerable to the Legislature

S. No Name Nature of Work

1 Wafaqi Mohtasib Plus 4 in deals with complaints from

provinces citizens against administrative
injustice and
maladministration.
(Includes nepotism, bribery
etc. ) established in 1983
2 Tax Ombudsman to address the prevalent
maladministration in taxation
system established in 2000
3 Insurance Ombudsman The institution is meant to
provide analysis, investigation
redressal and rectification of
any injustice done to a person
through maladministration by
any of the insurer in the
private sector. established in
2000.
4 Banking Ombudsman To settle disagreements and
differences between banks
and consumers through
mediation between the two
parties so that an amicable
and acceptable solution can be
found. Established in 2005
5 Federal Ombudsman for the protection against
Secretariat for Protection harassment at the workplace
Against Harassment and recently also given
 authority to decide women's’
inheritance related cases

Benefits of ombudsman:

• Improved service delivery: Ombudsman schemes worldwide prove to be very successful, not
only in resolving disputes but also in improving service quality and efficiency levels.
• Cost saving due to quicker decisions compared to standard courts which reduces litigant's
costs.
• Compared to the arduous and lengthy legal process, the ombudsman process is informal,
flexible and quick.
• Another important and beneficial aspect of the schemes is that complainants lose nothing
and retain the right to seek legal redressal later through appeal in courts

Public control

• The public exercises control over administration through

1. Elections

2. Pressure Groups

3. Advisory Committees

4. Public Opinion