Public Sector

• Public sector includes businesses organizations owned, controlled, and financed by the government.
• Examples for firms running under the Public Sector:

  • State Companies
  • Departments
  • Ministries
  • Local Authority Undertakings
• Corporations


  A business that is owned by many people and is run by a board of directors.
• Enterprise


  A business that is involved in the production of goods and services for sale to consumers.
• Characteristics of Public Organizations

  • They charge a nominal fee or provide services free of charge, because they are not profit motivated.
  • Assets and property are publicly owned.
  • A board is appointed to manage daily activities.
  • They are created after passing a special act in the parliament.
  • A minister is appointed to be in charge.
• Government properties = Public Ownership
• Nominal fee


  The amount of money that is paid to the court for the filing of a case.
• Nationalization


  The government takes over a business or industry from private ownership. (i.e Pvt. —> Gvt.)
• Privatization


  The process of transferring ownership of a public asset or service to a private entity. (i.e. Gvt. —> Pvt.)
• Reasons for nationalization


  • Strategic importance: Activities and services that are important for the safety & wellbeing of the country.

  e.g. Power plants

  • Basic industries: Industries that provide essential goods and services.
  • Financial needs: Industries that are too expense to run.