Govt advances SOE reforms

March 27, 2026 (MLN): The government moved ahead with restructuring state-owned enterprises and strengthening governance as it approved multiple board-level appointments while deferring key regulatory relief sought by energy firms.

The Cabinet Committee on State-Owned Enterprises (CCoSOEs), chaired by Finance Minister Muhammad Aurangzeb, endorsed a series of proposals spanning the energy, infrastructure and public sector corporate landscape, according to a statement from the Finance Division.

The committee approved nominations for the board of a special purpose vehicle overseeing the Thar coal rail connectivity project, a strategic initiative being developed in collaboration with the Sindh government to support coal transportation infrastructure.

In a separate decision, the panel cleared the winding up of Sarmaya-e Pakistan Ltd., citing redundancy following recent changes in the governance framework for state-owned enterprises.

The move indicates Islamabad’s broader push to streamline its public sector portfolio amid ongoing reforms.

However, a request by the Petroleum Division to exempt major gas utilities, including Sui Northern Gas Pipelines Ltd. and Sui Southern Gas Co., from certain international accounting standards was not immediately approved.

Instead, the committee directed further review by an inter-ministerial group, signalling a cautious approach to regulatory concessions in the energy sector.

The committee also approved the reconstitution of the board of Pakistan LNG Ltd., in line with recommendations from the Board Nomination Committee and the prime minister’s office, while a separate proposal concerning independent directors at Pakistan Petroleum Ltd. was referred to the federal cabinet due to legal considerations.

Further approvals included the restructuring of boards at power distribution companies Hyderabad Electric Supply Co. and Sukkur Electric Power Co., as well as the appointment of an independent director at Trading Corporation of Pakistan.

In the maritime sector, Yousaf Khan was appointed as a member of the Karachi Port Trust board against a vacant position.

The decisions reflect the government’s continued efforts to tighten oversight, improve governance standards and rationalize its footprint across state-owned enterprises, a key pillar of its economic reform agenda.

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