Private Sector in Pakistan: A Saviour or a Siphon?

By Faraz Ali Otho

The vigilante archetype, as seen in Superman, Captain America, and Spider-Man, depicts that where the system fails to reach, these fictional characters intervene and maintain peace and stability. In Pakistan’s case, the private sector has embraced that role from time to time. Pakistan is at a crossroads, both educationally and economically. As the public sector of Pakistan is in a critical condition, especially in terms of education and healthcare, the private sector has always been a saviour. Just as those characters maintain harmony in movies, the private sector backs Pakistan in the fields of education and healthcare. However, it is a grim reality that, ostensibly, the private sector favours neither the government nor the common people. Instead, it prioritises companies’ profits at the expense of public welfare.

Pakistan’s education system, instead of fostering quality education, leads to hardship, inequality, and degradation. More than 60% of enrolled students attend private schools and colleges. The middle class confronts financial instability owing to high tuition fees, extracurricular expenses, and the cost of uniforms and educational supplies. In addition, people below the middle class rely on government institutions, thereby further creating inequality and degradation. Elite chains in the shape of Beaconhouse, The City School, and other private colleges add to this problem and make the situation even worse. The Constitution of Pakistan declares access to quality education as a basic right of every individual, but sadly, this is not witnessed across the country. Consequently, Pakistan’s education system is doomed to failure.

Secondly, Pakistan’s healthcare system presents alarming facts. Around 0.9% to 1.2% of the annual budget is allocated to healthcare, which is among the lowest proportions in South Asia. Interestingly, the WHO recommends that 6% of the budget should be allocated to healthcare. It was reported in 2018 that 60% of patients skipped treatment due to poverty, and out of the remaining 40%, 80% preferred private hospitals for their treatment. Perhaps that is the reason why nearly 27,000 deaths occur annually due to tuberculosis (TB), and 40% of children under the age of five are stunted because of malnutrition. Thus, it is crystal clear that the public sector has failed to provide the necessary healthcare services to the people, leading to high mortality, poor health, and malnutrition.

Keeping in view the chaotic condition of Pakistan’s public sector, it is germane to survey other nations as well. Nordic countries such as Denmark, Sweden, Norway, and Finland are fine models in this regard. In these countries, universalism is practised. Rich and poor attend the same schools and visit the same hospitals. Most importantly, their education and healthcare systems meet public expectations. Moreover, their budgets are people-friendly, intended to impart quality education and provide quality healthcare services to all.

Germany shines as another example. Around 4.9% of its GDP is spent on education. Moreover, vocational training is also promoted by the government. Nearly 98% of students are enrolled in government institutions. Curiously enough, 12.7% of its GDP is spent on healthcare, making it one of the highest in the European Union. Moreover, almost the entire population is covered by health insurance, and virtually no one is left uninsured. These investments in the public sector maintain harmony in the state, and people enjoy its services.

Amidst these crumbling conditions in Pakistan, these nations are cited as models. Applying their examples to Pakistan requires greater investment in public education and healthcare while ensuring equality. The public sector must be revamped by implementing viable reforms. Otherwise, it will continue to grapple with the menace of inequality, illiteracy, and poor healthcare, and eventually, the system will collapse.