You cannot bring revolution with silk gloves

(Joseph Stalin (1879-1953) Russian Political Leader)

 Lecture - 1

Nature of Public Sector and Public Administration,

State, Society and System of Administration in Pakistan

Urban Planning & Development

(GPA - 316)
Outline
◼ Nature of Public Sector

◼ Nature of Public Administration

◼ State of Pakistan

◼ Pakistani Society

◼ System of Administration in Pakistan

Nature of Public Sector
 Nature of Public Sector
◼ Service oriented, no exit unless alternate, work in monopolistic environment

◼ Politics drives the decision making

◼ Poor in supplying Goods and Services

◼ Difficult to mobilize because of its size and inefficient because of inherent

bureaucratic constraints
❑ Long Channels of approvals, written documentation and record
❑ Irksome restrictions, works under a framework of rigid laws and institutions
❑ unpleasant officials, chances of corruption in operations

◼ Public sector has an edge over private sector in the following areas:

❑ Provision of Pure Pubic Goods

❑ Social welfare, Social Protection and Equity Functions
❑ Where implementation requires force
 Advantages of Public Sector
◼ Planning for a longer time

◼ Public Welfare

◼ Maintains Equity & Equality

◼ Distribution & Re-Distribution of wealth

◼ Boost Economic Development & Growth

◼ Self-Reliance

◼ Heavy and Strategic Industry

◼ Tender Sovereign Guarantees

◼ Huge Infrastructure
 Why Governments are bad Managers?
◼ Size and Structure (Big Government is Bad Government)

◼ Management, Knowledge and Analytical Constraints in Organization and

Management

◼ Political, Legal, Institutional and cultural constraints

◼ Poor Control on Personnel [Principal – Agent Problem]

◼ Government solutions have intended and unintended consequences

◼ Spread / Diffusion of State Power – Tri-chotomy of Power

◼ No cost effectiveness , national exchequer

◼ Political Interference in managerial affairs

◼ Limited autonomy and strong accountability

◼ Spread and Diffusion of Power

 Broad Functions & Roles of the Government
◼ Safety and Security (Physical & Social)
◼ Maintains Law and Order
◼ Regulate Market
◼ Regulate Society
◼ Rights Assignment
◼ Maintain Equity and Equality
◼ Dispense justice
◼ Disasters and Epidemics
◼ Development
◼ Defense
 Role of the Government
◼ Government is everywhere, but to what extent
Government act/intervene, that is to be decided by the
Government

◼ Government Interventions:

❑ Market -- Option Managerial Domain

❑ Non-Market -- Compulsion Administrative Domain

 Range of Government Market Interventions

◼ Inform or Persuade [Remove Information Asymmetry]

◼ Regulation: Setting Standards [Inspection & Enforcement /

regulatory cost]

◼ Incentives: Subsidies/Cushions

◼ Penalize: Negative Externalities -- Taxes/Duties

◼ Provide Goods: Provision through Government

Information Public Provision

 Key Questions in
Government’s Market Interventions
◼ Biggest dilemma in the Public Sector:

❑ Whether to act or not?

❑ How to exit, what would be the alternate then?

❑ How to motivate and replace profit making Private Sector?

❑ How to achieve Public Welfare without compromising the

Economy and Efficiency – Conflicting Objectives?
 When Governments Would Act

◼ Market Interventions:
❑ Private Market is not doing anything about it

❑ Private Market is in, but is imperfect

❑ Supply of Pure Public Goods

❑ Set price of Inelastic goods

❑ Private Market has failed on the issue

❑ Externalities in the market

❑ Information Asymmetry
 When Governments Would Not Act

◼ Alternate is available

◼ No Barriers to entry and exit -- Free Market

◼ Governments do not set price of elastic goods

◼ Truth and Liability Laws – Information Symmetry

◼ Transaction Cost is either zero or low

◼ No externality

◼ Neither urgency nor priority

◼ Scale an d scope of issue is small and limited

 Government Interventions

◼ Following are set of Government interventions:

❑ Market Interventions:
◼ Regulate Private Market – Remove Imperfect Competition
◼ Regulate Private market and Businesses
◼ Backstop Private Market Failures

❑ Non-Market Interventions:
◼ Provision of Pure Public Goods
◼ Dispense Justice
◼ Social Welfare Functions -- Social Protection and Equity Administrative
◼ Regulate Society and maintain law & order Domain

◼ Development
◼ Guarding Public Interests and Nation
 Working of the Public Sector

◼ Public Sector works through complex system of :

❑ Institutions --- Hardware

❑ Public Policies --- Software

 Public Sector Dilemma

◼ How to determine Public / Social Choices

❑ Political parties don’t know what citizens want

❑ Citizens don’t know what government intends to do

❑ There is an Information Asymmetry between Government and Citizens

 Aggregating Social / Public Choices

◼ Determining what is “good”

◼ What is “good” to one person may be viewed as bad for others

◼ Difficult to ascertain consensus of 220 M people, what the

Government should do

◼ You can try in this small class

 How to aggregate
Private Preferences to Social Choices

◼ Public Choice Theory: Individuals are the best judges of

their own well being – Rational individuals – Economic choice
of majority is the right choice.

◼ Public Welfare Theory: Welfare of the community depends

upon the welfare of individuals in that community – If
preferences are leading to welfare of majority , opt for it.

◼ Pareto Principle – If at least one person is better off from a

policy action and no person is worst off (PPF), then the
community as a whole is better off and the action should be
taken
 Pareto-Optimal Vs. Nash Equilibrium

◼ A Nash equilibrium may not be Pareto optimal.

◼ Nash equilibrium is when no player in a game can

increase his or her payoff by unilaterally changing their
actions [ Both players have to change their position].

◼ Majority of the political decisions are based on “ Nash

Equilibrium” rather than Pareto-Optimal Solutions
 Trade off and Opportunity Cost

◼ Public Administration cannot make every body better off,

without making someone worst off

◼ Operate under scarcity of resources, cannot give people

everything they want

◼ Multiple choices and alternatives, all options cannot be availed

◼ There is Trade – off in delivery of goods and services

◼ Trade – off leads to opportunity cost

2/6/2022 21
 Public Sector Organization
◼ Public Sector works under a complex system of institutions
and Laws/Rules (Public Policies):
◼ Institutions:
❑ Executive working under the overall supervision of the
Parliament
❑ Government headed by P.M and his Cabinet, principle of
collective responsibility
❑ Ministry headed by the Minister (Policy Guideline only)
❑ Ministry/Division headed by the Administrative Secretary (PAO)
◼ Legal (Public Policies)
❑ Shariah
❑ Constitution
❑ Acts/Ordinances
❑ Rules/Regulations
❑ Policies/ Manuals/ SOPs/S.Is
 Legal Hierarchy
◼ Constitution: Supreme law of the land/ Substantive legislation

◼ Acts/Ordinances/Order/Code: Subordinate legislation

◼ Codes: Collection or compilation of laws on a subject like

CPC, PPC, Cr.P.C , Special Laws, Fiscal Laws etc.
◼ Rules: Explanation of Laws, under express authority of law
◼ Regulations: By-laws/Rules/Regulations made by the authority

◼ SOPs: Standard Procedure

 Legal Hierarchy
➢ P.A works in accordance with Law.

Law

National/
International
Domestic

Public Private Public Private

C-S C-C S-S C-S

Criminal Laws
Family Laws
Const. Laws IHL IHRL
Contract Laws
Admn. Laws
Nature of Public Administration
 Administration

◼ Derived from Latin Word “Ad- Ministrare” means to serve,

look after and manage, hierarchy lower than Minister

◼ “Administration is action taken in pursuit of a conscious

purpose. It is the systematic ordering of affairs and the
calculated use of resources aimed at making those happen
which one wants to happen.”

◼ Administration is the use of resources to accomplish the

purpose

◼ Getting things done , managing the affairs

 Public Administration

◼ Study of public administration prepares individuals to serve as

managers/ administrators in the executive arm of government

◼ Fundamental goal is to manage Government’s affairs and

implement Government’s policies, so that government can
function per agenda

◼ Public Administration is simply an Administration of state and

society

◼ Life of the Citizens is affected by the type of Public

Administration

◼ Indispensable part of the modern society

 Political Science, Public Policy and Public Admn.

▪ Political Science:

✓ Study of the struggle for Power i.e. Politics

✓ Mother discipline of Public Administration

✓ Focus on electoral behaviour, political institutions, participation, political
parties, social movements, bureaucracy. power struggle.
▪ Public Policy:

✓ Study of how to solve collective problems. How collective problems are

defined and practically addressed
✓ Problem definitions, agenda-setting, formulation, implementation, evaluation.

▪ Public Administration

✓ Implement and execution of solution of problems (Public Policies)

 Difference between
Public and Private Administration

◼ Activities are urgent e.g. Law & Order, Fire & Rescue, Disaster
Response, Defense
◼ Law/Rules are supreme , no change, no flexibility
◼ Monopolistic Environment , measurement of efficiency is difficult
◼ Provision of goods and services through non market mechanism
◼ Actions under Public and Judicial Scrutiny
◼ Formal Authority

2/6/2022 29
 Broad Categories of Public Administration

◼ Operational Administration

❑ Day to day affairs, Status-quo

❑ Efficiency
❑ Running the affairs as per law Urban Admn.
❑ Doing things right

◼ Development Administration

❑ Goal Oriented, Result oriented, Change oriented

❑ Effectiveness Urban Planning
❑ Project Management, Development theories
❑ Doing right things
 Government Operations

◼ Primarily run by the Bureaucracy/Civil Service called steel frame

of the State:

❑ Ministers --- Set Policy Direction

❑ Bureaucrats -- Trained Workforce, execute Policies

❑ Supporting Staff --- Supports the Bureaucracy

 Reasons of growth of
Public Administration
◼ Socio-Economic disparities – Distribution and Re-Distribution of
Wealth

◼ Emergence of Welfare and Democratic State

◼ Population Growth -- Pressure for Social Welfare Functions

◼ Natural and Manmade Disasters – Disaster Management

◼ Violence and Extremism – Law & Order

◼ Economic Planning – Economic Management

◼ Socio-Economic and Infrastructure Development

 Public Service – A Career

◼ The call to public service is one of the highest call you can hear
and your country cam make. You must and foremost respond.

(L.H Hamilton – Congressman)

◼ What made you to choose this career is what made me to go

into politics – A chance to serve, to make a difference, it is not
just a job, a cause, a goal and destination.

(Tony Blair - Ex- P.M of U.K)

State of Pakistan
Society, State and the Government
 What is a State?

◼ Max Weber defined the state as a

◼ “Human community that (successfully) claims the monopoly of the

legitimate use of physical force within a given territory.”

◼ A State is an independent, sovereign government exercising control

over a certain spatially defined and bounded area, whose borders
are clearly defined and internationally recognized by other states

◼ Territory , Authority (Sovereignty) and People (May or may not be a

Nation)

Government
 Nation State
◼ A State inhabited by homogenous people of same ethnic and
cultural background (Nation), socially, cohesive and coherent unit. A
concept that conjoins political entity with cultural entity.

◼ Important Characteristics:

❑ Territory
❑ Sovereignty (Westphalian System)
❑ Homogenous Culture

◼ You can have a state without a nation [Afghanistan], and you can
have a nation without a state [Jews]
 State of Pakistan
◼ Article-1 Pakistan shall be Federal Republic to be known as the
Islamic Republic of Pakistan
◼ Federating Units : 4 - Provinces plus [Erstwhile FATA -
25th CA] ICT and Special Regions
◼ Special Regions: 2- Regions AJ&K, GB are yet to be
fully federating units, have
independent status
◼ Article-2 : Islam shall be the State religion of Pakistan (Cultural
ideology)
◼ Islamic Republic of Pakistan
❑ One of the four Islamic Republic in the world (Pakistan + Iran +

Afghanistan + Mauritania), out of 52 Muslim countries

◼ Article -7
❑ State means Federal Government , Parliament , Provincial

Government and Provincial Assemblies, any other local authority

empowered by law to impose Tax.
 Strategic Framework of Pakistan
◼ Vision of the State
❑ Objective Resolution
◼ Vision of the Government
❑ Vision - 2030
◼ Mission of the State
❑ To be an Islamic Welfare State
◼ National Moto and Core Values:
❑ Unity, Faith, Discipline
◼ National Slogan:
❑ Pakistan Zindabad
◼ National Signs & Symbols:
❑ National Emblem
◼ National Colours:
❑ Green and White
 Strategic Framework of Pakistan
◼ Mission of the Government
❑ Create a model like “Riasat-e-Madina”
◼ Goal(s)
❑ Economy
❑ Security
❑ Welfare
◼ Objectives:
❑ Reduce Fiscal Deficit, Unemployment
❑ Double Economic Growth etc.
 State’s Boundaries
Pak China
Border 523
Km

Pak Afghan
Border 2640
Km [Durand
Line]

Pak-Iran
Border 909
Km

Coastline
430 Nautical
Miles = 796
Kms

Pakistan
India Border
1600 km
[RadCliffe
Line] 41
 Boundaries

◼ Line of Control (LoC)

❑ Boundary Between AJ&K and Occupied J&K (Both
sides disputed territories)
◼ Working Boundary
❑ Boundary Between Pakistan and Occupied J&K (One
side disputed territory, other side Pakistan)
◼ International Border
❑ Boundary Between settled Pakistan and India
North Eastern Border

Working Boundary

International Border
North Western Border

44
44
 State Boundaries
◼ Territorial Boundaries of Countries:

❑ According to UN Convention on law of sea -1982

❑ State sovereignty and territorial boundaries extends to 12

NM in the sea a from the MSL /Coastal Baseline

❑ Maritime Boundaries [Exclusive rights over minerals and

Natural resources] (24-Nautical miles = 45 Kms)

❑ State Economic Zone [Exploration and Exploitation of

marine resources] (350 NM = 650 kms)

❑ Air space boundaries, no law at the moment. States

sovereignty in air space over territory, aviation law
 Factors Defining State Strength
◼ Physical or Hard
❑ Military might
❑ Economic Infrastructure
❑ Geographical integrity
❑ Level of Technology
State Strength: Relative Concept

❑ Human Capital
❑ Institutional Strength
◼ Non- Physical or Soft
❑ Nationalism – attachment to the very idea of a state.
❑ Political Stability
❑ People’s Characteristics
❑ Socio- Cultural Stability
❑ Socio-Economic justice and Fair Play
Pakistani Society
 Nature of Pakistani Society
◼ Over- Populated [ Population Density 2017- 245/Sq.Km] – 208 M (2017)

◼ Predominantly Rural Society [63% lives in villages]

◼ Diverse Society , Pakistani Culture based on ethnic grounds

◼ Predominantly Sunni Muslim (97%), 3% Non - Muslims

◼ Lack of Cohesion , various centrifugal forces at work

◼ Socially attached to land , gender issues

◼ Materialism is the hallmark of the society

◼ More than 60% is under 40 years, state needs one M job per year , >7% EGR

◼ Enough Natural, Human capital ,lacks in Financial Capital

 Demographic Profile

◼ Population (2017) 208 M Est. 220M in 2021

❑ Punjab 110 M
❑ Sindh 48 M
❑ KPK 31 M
❑ Balochistan 12 M Most Populous Territory
Punjab, least populous ICT
❑ FATA 05 M
❑ ICT 02 M

◼ Annual G.R 2.4 %

Source: (6th Population Census – 2017)

 Culturally Diverse Pakistan
• Diverse cultural groups
• Identifiable by their languages, dialect changes after every 5- kms

Broad Ethnic Groups organized on common language:

Punjabis, Pashtuns, Sindhis, Saraikis, Balochis, Hindkos, Chitralis,

Gujarati, Kashmiris, Kalashi, Brahui, Hazara, Shina, and Balti

• Castes organized on blood lines OR hereditary professions

• Each ethnic group has its own culture , which collectively forms
Pakistani Culture, uniformity in diversity
• Bouquet with variety of flowers
• Religion is the common thread , used as a state tool to unify Nation
 Socio-Economic Profile
◼ Percentage of world’s population 2.3%
◼ 5th most populous country in the world ( 2017 – 208 M)
◼ Average Population Density 245 persons/Sq.Km
◼ Average Population Growth 2. 4%, > 7% Economic G.R required
◼ Ranking among Muslim Countries 2nd after Indonesia
◼ Most urbanized country in South Asia 37%
◼ Rural – Urban Population 132 M + 76 M [ 63 % - 37 %]
◼ Slum to urban population 48% [ Approx. 35 M]
◼ No. of HHs 32 M
◼ Average HHS 7
◼ Age structure – Active Labour force 60 % (15-64)
◼ Literacy Rate 58 %
◼ HDI (2018) 0.560 (150/189) -- MDC
Source: (Economic Survey – 2018-19)
 Role of Administration in Society
◼ Public Administrator has to:

❑ Regulate and Steer Society

❑ Exercise Formal Social Control

❑ Fulfill Social Needs

❑ Manage Socialization and Socio-Cultural change

❑ Regulate Non-Conformance

❑ Resolve Societal Disputes

❑ Solve Social Problems, Issues, Evils

❑ Carries out Social Development

❑ Provide Social Protection and Social Welfare

System of Administration in Pakistan
 Public Administration
◼ “Public Administration is administration of the Government”

◼ “Foreign Administration” is also included in Public Administration

◼ International Administration is also part of “International

Administration”

◼ The objectives of Public Administration are to:

i. Maintenance of law and order.

ii. Provide justice.
iii. Look after the young people.
iv. Control diseases.
v. Provide security to the citizens.
vi. Manage the conflicting groups properly.
vii. Attain good life for citizens.
 Public Sector Organizational Structure
◼ State (Riasat) Vs. Government (Hakumat)

◼ Pillars of state
❑ Legislature, Judiciary, Executive and Press
◼ Tri-Chotomy of Power
❑ Legislature, Judiciary, Executive
◼ President
❑ Head of the State, C-in-C of the armed forces
◼ Government
❑ Executive Branch of the State
◼ Prime Minister
❑ Chief Executive of the Federation, Head of the Cabinet, Leader of the
House , Head of the Government
 Institutional Arrangement – Pillars of State

◼ Public Sector Complex Institutional Arrangement of Check

and Balance:

❑ Parliament (Legislature)
◼ Acts/Ordinances, Private/Official Bill [Executive sends bill
to the Parliament]
◼ Pure / Substantive Public Policy making domain
❑ Judiciary
◼ Judicial Review, Judgments , Suo-Moto Notices
❑ Executive/Government
◼ Implementing arm of the state
◼ Implement Public Policies in the state
◼ Make Rules, Regulations, Standing Instructions, SOPs
 Executive / Government Structure

◼ Tri-layered Structure:

❑ Ministers -- (Temporary Establishment elected for 5-years term)

❑ Bureaucrats --- (Permanent Establishment)

❑ Supporting Staff ---- (Permanent Establishment)

 Tiers of Government

◼ Federal
❑ Federal Government

❑ Foreign Administration

◼ Provincial

◼ District

❑ Urban Administration [Town /City Administration]

❑ Rural Administration [Villages and Land Administration]

Administrative Structure at Federal Level
President

Prime Minister
Chief Justice Speaker of N.A
& his Cabinet

Minister Minister Minister

Secretary

Additional
Secretary

Joint Secretary
 Federal Administration

◼ Federal Civil Service runs the day to day affairs of the

Federation and of Provinces as well

◼ Approx. 5,500 Bureaucrats (17-22) runs the

administration within and outside the country

◼ Federal Administration deals with Federal Subjects

◼ Federal Government includes Foreign Administration

 Federal Administration

◼ Federal Legislative List

❑ Defense
❑ External / Foreign Affairs
❑ Naturalization / Emigration / Immigration
❑ Communication
❑ Currency
❑ Public Debt
❑ Census
❑ Electricity
❑ Railways
 Federal Administration

◼ Federal Legislative List

❑ Minerals and Natural Gas

❑ Taxes on Sales/Income/Wealth

❑ Airspace

❑ Maritime Affairs

❑ Import/Export

❑ Copy Rights

❑ Nuclear Energy

❑ SBP, FPSC
 Foreign Administration

◼ Missions Abroad (127) -- Territory in Foreign Country, host

country has no jurisdiction
❑ Embassies [67]
❑ Consulates [60]

◼ Approx. 335 -- Officers and 1750 -- Personnel Posted Abroad

◼ International Organizations --- ECO, SAARC, UN Agencies, WB,
IMF, ADB, IDB [Reserved + Competitive Positions]
◼ 100 Plus officers representing Pakistan in International
Organizations like WCO, WTO , WB, IMF etc
 Foreign Administration

◼ Functions:
❑ Consular Services

❑ Commercial Functions
Performed by
❑ Representation of Government abroad Officers of other
than Foreign Service
❑ Delivery and receipt of messages for Government

❑ Intelligence functions abroad

❑ Community Welfare Functions

Mini Government of Pakistan Abroad

 Foreign Administration

◼ Consular Services

❑ Issuance of MRP/ETDs

❑ Repatriation of Pakistanis

❑ Consular access to detained Pakistanis abroad

❑ Issuance of Visas

❑ Provision of legal Aid to Pakistanis Abroad

❑ Attestation of documents
 Foreign Administration

◼ Attestation of Documents
❑ Birth / Death Certificates

❑ Nikah – Nama (Marriage)/ Divorce/Un-Married Certificate

❑ Driving License Verification

❑ Police Character Certificate

❑ Medical Certificate

❑ Experience Certificates

❑ Verification of Commercial Documents

❑ Affidavit/Power of Attorney from Abroad

 Provincial Administration

◼ Provincial Civil Service runs the affairs of the Province

◼ Provincial Administration includes Provincial and Federal

Officers

◼ Concurrent list abolished after 18th Amendment

◼ All residuary powers belong to Provinces

Administrative Structure of the
Provincial Government

Governor

Chief Minister
And his Cabinet

Minister Minister Minister

Secretary

Additional
Secretary

Deputy
Secretary
District Administration
District
Collector/Magistrate/Commissioner

Regulatory Development
Administration Administration

Law and
order

Land
Administrati
Rural and Urban
on Administration

Land
Revenue
Collection

Coordination
 Urban Administration Spheres

Maintaining Law and Order

[Pure Administrative Domain]

Urban Planning &

Administration

Resource Management
Development
Management [Public Economics &
Financial Management ]
 Nature of Urban Administration

◼ Complex

◼ Big Size

◼ Urgencies and Emergencies

◼ Social Diversity

◼ Different Economic Structure

◼ Different Political Paradigm

◼ Different Administrative Paradigm

◼ Different Administrative Tools

Thanks