RASTA: Local Research Local Solutions – Fiscal Management (Volume XX)

ABSTRACT

The Federal Government of Pakistan has around 40 Ministries/Divisions, and several Public Sector Entities/SOEs working under the control of respective ministries. The Rules of Business 1973 define the autonomous bodies or Public Sector Entities as we call them, but the Rules of Business are not clear enough. The Public Sector Entities (PSEs) either receive grants from their respective ministries and use these with or without any adequate accountability. In some cases, the PSEs perform essential statutory or regulatory functions. They generate huge funds, much of which is used by the organization concerned to meet its expenses. Quite often, accountability systems other than the routine audits are lacking. The State-Owned Enterprises Act 2023 and The PFM Act 2019 provide the essential framework for governance of these Public Sector Entities, but still, much needs to be done.

The study reviewed the organizations under the administrative control of the Ministry of Science and Technology. The Ministry has 14 autonomous bodies under its control, and all are significant in terms of providing essential services related to the advancement of science and technology in the country. We studied the Ministry as a whole and then focused on 5 of its autonomous bodies.

We find structural flaws within the structure of governance and make the following recommendations to address these.

• The autonomous bodies shall have a schedule in the Rules of Business 1973 as proposed by the Institutional Reforms Cell headed by Ishrat Husain.

• The organisations under the ministry of S & T shall be categorised as per Section 36 of the PFM Act 2019 and shall follow the SOE Act 2023 and SOE Policy 2023 as well.

• The organizations, under the Ministry of S & T shall manage their human resources effectively and shall have proper heads overseeing their administrative matters adequately.