PRIVATIZATION OF PUBLIC INSTITUTIONS IN PUNJAB: IMPLICATIONS FOR SERVICE DELIVERY, ACCOUNTABILITY, AND EQUITY

Abstract

This research explores consequences of privatization of public institutions in Punjab, Pakistan with respect to service delivery, accountability and citizen welfare. While privatization has been advocated to improve efficiency and access, lessen fiscal pressures, and enhance service delivery, its impacts in practice are ambiguous and contentious. From a governance perspective, this research focuses on four sectors in which Punjab has been a pioneer in privatization and public-private partnership (PPP) models: education, healthcare, utilities, and transport. Research suggests that the outcomes of the privatization of public institutions have been mixed. Programs like the Punjab Education Foundation made it possible for over 2.6 million students to access education, and the outsourcing of Basic Health Units increased the utilization and availability of medicines. The Lahore Waste Management Company, for example, gained from the use of AI for route optimization, and other transport interventions like the Metrobus and Orange Line trains shortened travel times and reduced congestion. While these estimates are commendable, the outcomes of privatization have deepened inequities, increased the rural-urban divide, increased out-of-pocket expenditures in health care, and transport availability relied heavily on government subsidies. There are accountability issues due to the lack government oversight, transparency in audits, and regulatory control over privatized institutions. From the results, it can be seen that privatization in Punjab has often favored the urban elite, while the disadvantaged still struggle with access and the cost. It is necessary to form governance arrangements that are strong enough to ensure equity, fiscal sustainability, and active citizen governance. Suggested policies call for greater regulation and protective social equity, along with ‘privatization right’ safeguards to ensure that the development nan accountability nexuses system in Punjab is responsive and sustainable.