Drivers of Public Sector Reforms in Pakistan: A

Comparison of NPM with Alternative Reform Drivers

Yorid Ahsan Zia

& M. Zeb Khan

Abstract
Like other countries, Pakistan is making efforts to modernize its
institutions to deal with formidable and complex challenges that it
confronts. Public sector reforms in Pakistan reflect different models
some borrowed and some indigenously discoveredsince early 1!"s.
#ach model has its strengths and limitations with a moderating being
played by the peculiar politico$administrative contexts of the country.
%he study in &uestion was aimed at finding out the drivers of public
sector management reforms in order to know how far they reflect local
realities and how much they have been influenced by international
trends. 'ata was collected through interview with senior government
officials and various public reports. %he results do not provide any
counter$intuitive finding but show that there are points of convergence
and divergence in different reform drivers in Pakistan vis$($vis the
reforms informed and led by )ew Public *anagement +)P*, model.

Keywors: Public sector reforms, New public management, Alternative
reform models


!ntrouction
Public sector reforms under the socalled New Public Management
!NPM" are widespread and seem to have man# commonalities around the
world. $hese reforms have strong advocates in the AngloAmerican
countries and international organi%ations !such as &orld 'an(, )N*P,
and +M," have pla#ed a vital role in spreading such reforms to
developing countries including Pa(istan. +ndividual actors including
consultants, bureaucrats, and political leaders too have had their part in
introducing reforms in public organi%ations.
-
.ow much the NPM
driven reforms have resulted in real change is a /uestion which still
demands a convincing answer rooted in empirical evidence.
0
Man#
practitioners and researchers believe that NPM accounts for ma1orit# of
reforms in the public sector but attributing all changes and innovation to
NPM is a distortion of the evolutionar# character of public management

Yorid Ahsan Zia, 2ecturer, 3uaideA%am 4ollege of 4ommerce, )niversit#

of Peshawar

M. Zeb Khan, Assistant Professor, ,A5$National )niversit#, Peshawar

Drivers of Public Sector Reforms in Pakistan:
A Comparison of NPM with Alternative Reform Drivers Yorid Ahsan Zia6 & M. Zeb Khan
%he 'ialogue 7olume 7+++ Number 8
89:
practices. $he purpose of this paper is to identif# the drivers of public
sector reforms in Pa(istan and to assess their relative significance.
$he succeeding part of this paper briefl# e;plains the construct
of NPM and discusses its role as a prominent driver of reforms in
government. +t is followed b# a comprehensive discussion and anal#sis
about other drivers of public sector reforms in Pa(istan with e;amples
from different organi%ations in addition to NPM as a competing driver.
$he main conclusion of the paper is that there is sufficient evidence
which suggest that alternative drivers have had considerable impact on
the nature and direction of public sector reforms in Pa(istan. $he results
of this paper suggest that indigenous reforms appear to be more
sustainable and effective than those borrowed from other countries
regardless of the conte;tual differences.

"he Nee for Reforms
<Public 5ector =eforms refer to interventions that affect the organi%ation,
performance and wor(ing conditions of emplo#ees paid from central,
provincial or state government budgets>.
:
+t has been referred to at
another place, as <Public 5ector =eforms is a planned intervention to
raise the level of public service performance. +t must have carefull#
defined goals and a strateg# to attain those goals>.
8

2i(e man# other countries, Pa(istan tries to reform public
organi%ations to ma(e them more effective and vibrant for meeting
various challenges including the demand for socioeconomic
development and securit#. More specificall#, factors such as declining
public finance, macroeconomic crisis, gradual domination of the mar(et
econom#, and terrorism have forced the government to modif# its
bureaucratic machiner#. 5ome reform measures have #ielded positive
outcomes but others have not moved be#ond political pronouncements.
'ureaucrac# in Pa(istan is still haunted b# problems of corruption,
elitism, inefficienc#, and lac( of responsiveness.
9


NPM as a Driver of Reform
Man# scholars have tried to define NPM !New Public Management" and
its origins in order to understand its strengths and limitations. $he (e#
proponents of this approach come from <4hicago 5chool ?conomics>
including $ulloc(, Nis(anen, 'uchanan, and @sborne and Aaebler who
emphasi%ed mar(et principles and greater use of private sector
management practices with a view to reducing the si%e of public
bureaucrac# and ma(ing it innovative, responsive, and efficient. NPM,
as a management philosoph#, focuses on decentrali%ation and devolution,
resultbased accountabilit#, managerial discretion, contracting out
government services, fewer rules and regulations, and reducing
Drivers of Public Sector Reforms in Pakistan:
A Comparison of NPM with Alternative Reform Drivers Yorid Ahsan Zia6 & M. Zeb Khan
%he 'ialogue 7olume 7+++ Number 8
898
comple;it#.
B
.ood contends that NPM has originated from convergence
of two different streams of thought.
C
@ne is the DNew +nstitutional
?conomicsE
F
based on public choice theor# of 'uchanan and $ulloc(,
G

$ransactioncost economics,
-H
and Principalagent theor#
--
which
e/uates politics with mar(et phenomenon. $he other is DManagerialismE
which gives supremac# to private sector management practices in
improving efficienc# and effectiveness.
-0
$he spread of NPMdriven
reforms in different countries was the outcome of apparentl# universal
agreement that the# #ield benefit to all (inds of politicalIcultural
conte;ts.
-:
NPM has, however, been critici%ed on man# grounds. ,or
e;ample, 5chic( asserts that NPM ta(es a narrow view of the public
sector and wea(ens collective values of probit#, e/ualit#, and
impartialit#.
-8
Moreover, public administration is rarel# the responsibilit#
of a single organi%ationJ rather it demands interorgani%ational
coordination and cooperation hori%ontall# and verticall#.
-9
According to
*eleon and Areen,
-B
reducing rules lead to administrative corruption due
to rentsee(ing behavior of public servants. NPM also fails to pa# proper
attention to the involvement of citi%ens in decisionma(ing because it
views citi%ens as clients or customers.
-C
Moreover, NPM emphasi%es
achievement of a single organi%ationIindividual rather than its
contribution to the overall purpose of the state.
-F

=eforms under the NPM model were started in Pa(istan during
-GGHs and were informed b# neoliberal of economic development as
enunciated b# the <&ashington 4onsensus> of liberali%ation,
deregulation, and privati%ation $his model was sponsored and promoted
b# international institutions such +M, !+nternational Monetar# ,und",
&orld 'an( !&'", and )N*P !)nited Nations *evelopment Program"
under 5tructural Ad1ustment Program !5AP". *espite political upheavals,
the reform model remained intact and so man# 5@?s !5tated @wned
?nterprises" such as P$4 !Pa(istan $elecommunication", A$5
!Aovernment $ransport 5ervice", and 'an(s were privati%ed with
fragmentation of &AP*A !&ater and Power *evelopment Authorit#"
into different electric suppl# companies. A recent wave of reforms under
NPM model focuses on the polic#e;ecution dichotom# as a means of
5ocioeconomic development.
-G
Man# agencies such as .?4 !.igher
?ducation 4ommission", N*MA !National *isaster management
Authorit#", and $=A !$elecom =egulator# Authorit#" have been created
to promote professionalism and completion.

Alternative Drivers of Public Mana#ement Reforms
'esides NPMinspired reforms, there are other drivers which have led to
changes in public administration in Pa(istan. $he# includeK
i". 5ocial Lustice and ?mpowerment *rive
Drivers of Public Sector Reforms in Pakistan:
A Comparison of NPM with Alternative Reform Drivers Yorid Ahsan Zia6 & M. Zeb Khan
%he 'ialogue 7olume 7+++ Number 8
899
ii". .umani%ation *rive
iii". +4$ revolution

-ocial .ustice and #mpowerment 'rive
@ne ma1or driver of public administration reforms is greater demand for
inclusiveness of disadvantaged groups in public service and decision
ma(ing at all levels of government.
0H
$his is especiall# true in the case
of Pa(istan where man# groups belonging to tribal areas, women, and
minorities have had historical disadvantages in access to emplo#ment
opportunities in government, getting leadership positions, and
participation in democratic process.
0-
5ince partition, there have been
efforts in Pa(istan to bring bac(ward regions at par with others through
/uota s#stem in civil and militar# bureaucrac#
00
in addition to
affirmative action as a polic# of positive discrimination. +n order to
ensure grassroots participation in decisionma(ing, there have been
attempts to devolve administrative and financial powers through local
government s#stems.
0:
$he devolution of power to local level was a
remar(able effort during Musharraf regime !-GGG0HHC". More
importantl#, the Musharraf regime !-GGG0HHC" introduced various
reforms that led to free media !particularl# electronic media" which, in
turn, provide an effective platform for public accountabilit# of the sitting
government.
08
4iti%en empowerment can also be seen from government
initiatives to increase greater professionalism in public bureaucrac#
through e;tensive training and sociali%ation of public servants in
institutions li(e N+PA !National +nstitute of Public Administration" and
National 5chool of Public Polic#.
09
Publicprivate Partnership !PPP" is
another area which has been in focus as a development paradigm in
Pa(istan since -GGHs. $his model advocates transfer of ownership to the
public through creating some (ind of 1oint ventures which not onl#
ensures greater transparenc# and efficienc# but also sustainabilit# of the
pro1ects.
0B


/umanization 'rive
$he third ma1or driver of public administration reform in Pa(istan is the
humani%ation of public service. $here has been a visible shift from
<mechanistic thin(ing> toward human relations. $his alternative wa# of
thin(ing gives more importance to emplo#ees as <whole persons> in the
sense that the# come to wor( organi%ations not as instruments and
machines but as humans with feelings, beliefs, and different attitudes.
$he shift is reflected in a broad movement toward human resource
management which emphasi%es interpersonal relations, sensitivit# to
emplo#ee needs, and emplo#ee involvement.
0C
$he pioneer of this
approach to management include McAregor,
0F
who distinguished
Drivers of Public Sector Reforms in Pakistan:
A Comparison of NPM with Alternative Reform Drivers Yorid Ahsan Zia6 & M. Zeb Khan
%he 'ialogue 7olume 7+++ Number 8
89B
between theory x and theory y wherein he emphasi%ed the role of
environment and supervisor is critical in determining emplo#eesE
performance. *ruc(er

also re1ected the philosoph# of management by
control
0G
and advocated a new approach which gives more importance
to 1ob enlargement, 1ob enrichment, and participative & consultative
management. $his model is seen as reaction to the dehumani%ing aspects
of $a#lorEs scientific management reflected in emphasis on
standardi%ation of instruments, precise performance standards, and
positions !rather than people". $he humani%ation model of public
administration reforms is associated with the /ualit# of wor( life and
philosoph# that views emplo#ees as whole persons with interests and
needs inside and outside the organi%ation that must be balanced and
reconciled.
:H

Public sector reforms in Pa(istan reflect the humanitarian model
in more than one wa#s. Man# public organi%ations have set up human
resource departments with responsibilit# to wor( as administrative
e;pert, emplo#ee advocate, change agent, and strategic partner.
:-

$hough .=M !human resource management" is in embr#onic stage,
particularl# in the public sector, but man# factors have led to a change in
thin(ing about emplo#ees.
:0
+n addition to .=M, the government of
Pa(istan has introduced man# reforms in the public organi%ations !e.g.
P+A, ,'=, and 5tate 'an( etc" that recogni%e individual importance.
.owever, there is still much to be desired given the dominance of
traditional public administration model.

01% 2evolution
$he third driver of public management reform in Pa(istan is the +4$
!+nformation and 4ommunication $echnolog#" revolution. +nformation
technolog# changes whatever it touches including the government. $he
governments emplo# +4$ to process and disseminate information as a
crucial element in ma(ing rational and timel# decisions.
::
Moreover,
computers in government ma(e it possible to compile and anal#%e
information pertaining to performance of an organi%ation for greater
transparenc# and accountabilit#.
:8
+n other words, information
technolog# !+$" not onl# improves organi%ational efficienc# and
effectiveness but also promotes democrac#. $he concept of e
government captures the government drive to facilitate access of the
general public to various services it provides.
:9
+n addition to creating
virtual structures, +4$ leads to downsi%ing and creation of networ(s
designed to brea( traditional organi%ational boundaries.
:B
+n Pa(istan, the
e;tensive use of internet b# public agencies !such as registration
departments, ta; authorities, postal services, libraries, and public utilities
etc." has led to efficient service deliver#.
:C

Drivers of Public Sector Reforms in Pakistan:
A Comparison of NPM with Alternative Reform Drivers Yorid Ahsan Zia6 & M. Zeb Khan
%he 'ialogue 7olume 7+++ Number 8
89C
Conclusion
$his review of public sector reforms in Pa(istan ma(es some patterns
apparent. ,irst, Pa(istan has not full# embraced the mar(etbased
reforms. $here is low level of interest and e;perimentation with NPM
inspired reforms mainl# due to evolutionar# character of Pa(istani
bureaucrac# and peculiar sociopolitico conte;t. +n some cases, such as
pa# reforms and contracutali%ation of public services, NPM has shown
its presence but in the core bureaucrac#, it has been re1ected.
Notwithstanding some rhetoric and polic# documents supporting NPM,
realit# on the ground largel# remains unaffected. .owever, some (e#
elements of NPM pac(age including privati%ation, contracting out of
public services and emphasis on resultbased performance signals a shift
in the wa# government does or intends to do its business. *espite this
shift, there are competing drivers which determine the nature, pace, and
direction of changes in the public sector. $here alternative drivers are not
onl# integrall# related to one another but in some cases can also be seen
as converging with NPM ideals. Aovernment reforms such as
introduction of local government, emphasis on e/ual emplo#ment
opportunities, fair treatment of public servants, and valuing diversit# etc.
all point to the internal d#namics of public sector reforms. $he impact of
+4$ on how the government does its business is profound and
conspicuous. ?government gives citi%ens full time access to government
services and reports through web portals. $he use of such portals ma(es
it possible to have alternative forms of organi%ations including partnering
!publicprivate partnership", virtual organi%ations, and networ(ing. +n a
nutshell, reforms in Pa(istan have to be seen as entangled in conte;tual
factors reflecting local realities and different agents of change. $hus,
attributing ever# change in the public sector in Pa(istan to one particular
model is misleading and m#opic. $his stud# suggests that in future
public administration reforms in Pa(istan will be largel# affected b# the
public demand for social e/uit# and democrati%ation and the use of
modern technolog# to ma(e the government more efficient, responsive,
and accountable.

Drivers of Public Sector Reforms in Pakistan:
A Comparison of NPM with Alternative Reform Drivers Yorid Ahsan Zia6 & M. Zeb Khan
%he 'ialogue 7olume 7+++ Number 8
89F
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