Special Edition-07.pdf - Lahore School of Economics

Reforming the Government in Pakistan: Rationale, Principles & Proposed Approach 5
(C) Changes in Pakistani Scene
We now turn to the diagnostic studies and the changes that have
taken place in the landscape in Pakistan in the past several years and are
likely to affect the functioning of the government in the future. A number
of commissions, committees, task forces, and working groups have examined
and made recommendations about the changes in our administrative system.
These recommendations and studies have been scanned and sifted and the
proposals that are still relevant and useful will form part of the NCGR’s
recommendations. But in addition to the historical reasons there have been
at least seven new developments in the last few years that clearly point to
the need for reforms in the structure, processes and human resource
management policies and practices.
First, it is becoming increasingly apparent that the benefits of
economic growth have not been distributed equitably among the lower
income groups, backward districts, rural areas and women. Although the
government has used the channels of devolution and poverty targeted
interventions to spread these benefits, the results have been less than
satisfactory. Almost all studies point out that the institutions of governance
i.e. the governmental machinery at the Federal, Provincial and Local
Governments have become largely dysfunctional due to the protracted
neglect of our institutions. Almost all comparative country rankings,
whether originating from the World Bank* or Global Competitiveness
Report of the World Economic Forum or other think tanks and institutions
consistently rate Pakistan quite low in Public Sector Management,
Institutions and Governance. Along with the low Human Development
Indicators this weak institutional dimension makes the task of poverty
reduction, income distribution and delivery of public services quite difficult.
The impact of good economic policies upon the lower strata of our society,
particularly those who are illiterate and are not well connected, thus gets
muted. The widespread hue and cry about the absence of a trickle down
effect of good economic policies is a manifestation of the dysfunctional
nature of our public sector governance. Government institutions have to be
strengthened to meet this challenge.
Second, the responsibilities of the government in the field of
owning, managing and operating public enterprises and corporations have
undergone significant change both in the thinking as well as action during
the last sixteen years. A large number of government owned corporations,
businesses, industrial units, banks and financial institutions and service
providers have either been privatized or are in the process of privatization.
This will reduce the burden on the administrative apparatus at all levels of