Public Corporations

Public Corporations
• It is a publicly owned enterprise that has been
chartered under the federal, provincial, or local
laws for a particular business of financial
purpose

• A statutory commercial undertaking created

through enactment with defined powers, and
clear jurisdiction with financial and
administrative autonomy.
 Main Characteristics
• A legal person
• It’s incorporated under an act of parliament
• It is commercial undertaking
• It enjoys administrative and financial autonomy
• It has its own resources- assets, liabilities and equities
• its finances are separate from the national finances
• It acquires at least a portion of its funding in the
marketplace
 Public Corporations in Pakistan
• Rationale for the Establishment
– Industrial backwardness
– Exploitation of natural resources
– Provision of goods and services to the neglected
segments of society
– Balanced regional development
– Accelerate economic and industrial growth
• PIDC, PICIC
• IDBP & ADBP
• SBFC
• NIT, ICP
• SMEDA
• SNGPL & SSGPL
• WAPDA
• Power Generation & Distribution Companies
• PIA, Pakistan Railways, NTC, PTCL, National Ports and Shipping, NHA
• State Life Insurance Corporation, National Insurance Corporation
• Pakistan Steel
 Issues
• Political interference
• Weak legislative and political control
• Corruption
• Mismanagement of resources
• Monopolistic nature of operations
• Incurring huge losses
• Lack of commitment, direction and initiatives
• Weak internal and external accountability