Governance challenges in Public Sector: an Analysis of Governance and Efficiency Issues in Public Sector Institutions in Pakistan

Abstract

Governance and Institutions are not ends in themselves but it is well known by now that good governance and effectively functioning institutions are required, along with sensible policies and well designed public investment. How do Governance and Institutions interact? Governance refers to the manner in which power is exercised in the management of a country’s economic and social resources. Good governance requires checks and balances in a country’s institutional infrastructure, such that politicians and bureaucrats have the flexibility to pursue the common good. A variety of institutional mechanisms can provide the checks and balances that will lead to good governance and reduced corruption. To be enduring and credible, these mechanisms need to be anchored in core state institutions. Power can be divided horizontally among judiciary, the legislative and the executive, and vertically between central, provincial and local authorities. Public sector in Pakistan is not efficient enough to positively impact the economy due to political and bureaucratic misuse of authority and influences This paper discusses only a few of the underlying legislative and administrative factors which have contributed to mal -governance in public sector in Pakistan. To investigate and determine the efficiency and effectiveness of governance, different variables have been identified and secondary data resources have been used to highlight governance issues in public sector institutions of Pakistan. Findings of the research will be helpful in improving governance in public sector institutions through reforms in Parliamentary, Judicial and Civil Services system of Pakistan as well as for other third world countries having similar challenges of governance in their countries.

Keywords: Governance, Public Sector, Public Sector Institutions