Finance Minister urges for enhanced governance, accountability in SoEs

September 24, 2023 (MLN): In order to ensure prosperity in the economy, enhanced governance and accountability in the State-Owned Enterprises (SoEs) is essential, Federal Minister for Finance, Revenue, and Economic Affairs Dr. Shamshad Akhter stated during a meeting with members of Pakistan Business Council (PBC).

During the meeting, the members of PBC applauded the efforts of the interim government to curb smuggling, align exchange rates, and maintain IMF support.

Dr. Shamshad Akhtar reiterated the commitment of the govt to expanding the tax base and addressing energy sector issues for a robust economy.

As per the latest figures revealed by the Federal Minister, the net loss incurred by SoEs in the year 2020 amounted to a staggering Rs138 billion.

The SoEs that reported profits in 2020 were Oil and Gas Development Company Limited, Pakistan Petroleum Limited, National Bank of Pakistan, Government Holding (Pvt) Limited, National Power Parks Management, Port Qasim Authority, National Transmission and Despatch Company, Pak Kuwait Investment Company, Faisalabad Electric Supply Company Limited and Pakistan Agricultural Storage & Services Corporation Limited.

Notably, a significant portion of these profits, Rs100.8bn, was generated from the oil and gas sector.

On the other hand, loss-making entities include Quetta Electric Supply Company, National Highway Authority, Pakistan Railways, Sukkur Electric Power Company, Pakistan International Airlines, SSGCL, Pakistan Steel Mills, HESCO, Pakistan State Oil Company, and Peshawar Electric Supply Company.

"The weak performance of these SoEs can be attributed to a lack of autonomy, external interference, inappropriate boards, and weak management," she remarked during a live television address on Thursday.

“We anticipate updated figures for more recent years to become available within the next three months,” she added.

The optimal performance of SOEs is the requisite crucial factor for the government's medium to long-term macroeconomic resilience and growth prospects.

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