ABSTRACT
This chapter examines the administrative system of which they are a part; public sector enterprise (PSE)-parent ministry relations; PSE-Ministry of Finance relations; and PSE relations with other ministries. It explores the relations between and among PSEs; PSE-customer relations; PSE relations with the private sector; and the privileges of and constraints on public enterprises. The chapter discusses the environmental context within which public enterprises operate. Given the power exercised by the Ministry of Finance in the administrative system of Pakistan, in discussing PSE-Finance Ministry relations, the issue of financial control over public enterprises is important. PSEs provide services and sell products to the private sector. They also compete with private firms in such sectors as finance, manufacturing, transportation and communications, and construction. The privileges afforded to public enterprises take the form of subsidies, guaranteed access to credit from the banking system, and government policies and regulations which modify the market place for PSE services and goods.
