This document summarizes the key types and classifications of state-owned enterprises (SOEs) in Pakistan. It states that there are a total of 99 SOEs in Pakistan, classified into 21 financial institutions, 25 business/industrial enterprises, and 53 service providers. The SOEs are further classified by their legal-structural forms, with some created under public laws, some under the Company Act/Ordinance as public companies, and some under an act of the Cabinet or executive order. The document also discusses the importance of SOEs and corporate governance considerations regarding balancing state control with enterprise autonomy.

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2. Public
Corporations /State
owned Enterprises
In Pakistan
Department of Public Administration

3. Learning
Objectives
● What is Public Corporation
● How it is Different from Public Organizations
● Discuss in detail the different Public
corporations/enterprises of Pakistan

4. Public
Corporation
● Public Corporation is the most important innovation
in political organization and constitutional practice
● It is Publically owned enterprise that has been
chartered under the federal state or local laws for
particular business of financial purpose

5. Public
Corporation
● A corporate body is created by legislature with
defined powers functions financially and
independently, having a clear cut jurisdiction in
specified area over a particular commercial activity
● Example:
● Pakistan Steel Mills (PSM)
● Pakistan Broadcasting Corporation (PBC)
● Pakistan Tourism Development Corporation (PTDC)

6. Difference
from Public
Organization
s
● SOEs are distinct from other government ministries
and agencies in a way that they do not use general
revenues (Rondinelli, 2007) rather they generate all
or most of their revenues from sale of goods and
services (World Bank, 1995).
● Thus, SOEs are directly involved in commercial
process (Turner and Hulme, 1997). Although SOEs
operate with diverse roles in society but there is
consensus on the point that SOEs contribute in the
government agenda of achieving socio-economic
growth (Khan, 2008).

7. State
Intervention
● In developing countries like Pakistan, state
intervention in economic and industrial enterprises
has become almost compulsory for various reasons.
a) To build up an industrial infrastructure and raise
productivity;
b) To increase employment opportunities;
c) To upgrade the standard of living by accelerating
national growth and development;

8. a) To render required services and cater to public
utilities like power, transportation and
communication as they are heavy capital
investments;
b) To provide sources of credit to finance
agricultural and industrial production and trade in
the country; and
c) To reduce dependency on foreign capital and aid.

9. Public
Corporation
● The state becomes a vital partner in industrial
development and promotion of industrial enterprise
both as a matter of national policy, and to ensure
public control over important sectors of the
economy.

10. Corporate
governance
● Corporate governance broadly refers to the
processes, mechanisms and structures for decision
making, accountability, controls and interaction
among key actors at the top levels of the
organization (Monks and Minow, 1995).
● The primary concern is to resolve issues arising from
interaction and relationship of three key actors
including the Board of Directors, senior
management and owners. However, many other
actors are also involved which include creditors,
employees/labor, advisors, suppliers, members of
the community and even government and regulatory
authorities

11. IMPORTAN
CE OF
PUBLIC
CORPORAT
IONS
●Planned Development
●Most developing countries have
five years development plans for
economic development. Public
enterprises are given specific roles
and targets in such plans. Public
sector programs are also
implemented by public
corporations.

12. IMPORTAN
CE OF
PUBLIC
CORPORAT
IONS
1. In Pakistan, SOEs have significant economic
presence due to unsuccessful privatization efforts
involving procedural complications in addition to
many hindering political and social factors
2. some enterprises could simply not be privatized
due to their strategic position in the economy of
the country.
3. The governments of Pakistan established,
privatized or restructured SOEs in different eras
in response to the international best practices to
ensure effective public service delivery
mechanisms dictated by international agencies
and forced by economic situation of the country.

13. Classificatio
ns of SOEs
SOEs in Pakistan are classified in terms of various
organizational characteristics including:
❑ legal-structural forms
❑ corporate governance models
❑ ages
❑ tasks.

14. SOE
Autonomy
● Another important consideration, in SOE reforms, is
balancing state control and SOE autonomy.
Autonomy, to an extent, is explicitly or implicitly
recognized when creating SOE as an independent
legal body.
● Placing enterprise decisions outside the sphere of
politics and ministerial bureaucracy presumably
promotes efficiency of both government and
enterprises.

15. Corporations/State
Owned Enterprises
in Pakistan

16. ● According to the legal and functional classification
of federal organizations by National Commission for
Government Reforms (NCGR, 2008), there are total
99 state-owned enterprises (SOEs) in Pakistan.
● These SOEs are engaged in various tasks. There are
total of 21 financial institutions, 25 business and
industrial SOEs and 53 service-providing SOEs.

17. SOEs in
Pakistan

18. LEGAL-
STRUCTURAL
CLASSIFICATIO
N
● Legal status refers to whether the organization is
setup under a private law (company law/ordinance),
a public law or through another special instrument.

19. SOEs
created
under Public
laws
● There is a total of 10 SOEs which are created under
public laws including Pakistan International
Airlines, Pakistan Broadcasting Corporation,
Pakistan National Shipping Corporation, Pakistan
Post Office Department, Pakistan Insurance
Corporation, Heavy Industries Taxila, Equity
Participation Fund, State Life Insurance
Corporation, National Insurance Corporation and
Pakistan Aeronautical Complex Board.
● All the SOEs created under public law fall under the
category of statutory corporations except one i.e.
Pakistan Post Office Department which is an
attached department

20. SOEs Under
Company
Act and
Cabinet Act
● SOEs created under Company Act/Ordinance have
the status of Public Companies. The third category
refers to SOEs created under an act of Cabinet or
through an executive order or some other legal
instrument.
● A total of 5 SOEs belong to this category including
Afghan Trade Development Cell, Pakistan Housing
Authority and Northern Areas Transport
Corporation.