Govt aims to reduce SOE presence in public sector

September 29, 2023 (MLN): The main objective regarding state-owned enterprises (SOEs) is to reduce their presence within the public sector and simultaneously enhance the competitiveness, accountability, and responsiveness of those that remain, the caretaker finance minister, Dr. Shamshad Akhtar stated during a meeting on Thursday, according to a press release issued on the same day.

Dr. Shamshad Akhtar made these remarks during the meeting of the Cabinet Committee of State-owned Enterprises (CCoSOE) at the Finance Division.

The principal agenda of the meeting was to conduct a comprehensive review and finalization of the State-Owned Enterprises Policy 2023, a landmark initiative aimed at reforming and revitalizing Pakistan's state-owned enterprises.

The Cabinet Committee engaged in constructive discussions, reviewing key elements of the policy in light of suggestions from the previous meetings, including governance structures, performance, and accountability mechanisms.

"The mismanagement of SOEs due to the status quo cannot be allowed to continue, and dividends must be improved through enhanced efficiency, transparency, and sustainability within these SOEs," she added.

The Finance Minister stated that the State-Owned Enterprises Policy 2023 represents a critical step towards restructuring and modernizing our state-owned enterprises and economy.

This policy will pave the way for a more efficient utilization of public resources and will enhance the overall economic landscape of Pakistan.

The Finance Minister underlined that the inconsistencies, contradictions, and ambiguities in the relevant laws and rules have to be corrected to improve corporate governance in the SOEs.

She said that the code of conduct for Boards of Governance in the SOEs has to be formulated and implemented in letter and spirit.

The Finance Minister also emphasized the importance of enhanced scrutiny of the “fit and proper criterion” by the regulators.

Dr. Shamshad Akhtar said that the Cabinet Committee on SOEs and the Central Monitoring Unit have to play a major role in ensuring the business plans of the SOEs are in line with the sectoral priorities.

The Caretaker Finance Minister extended appreciation to members of the Committee for their contributions and commitment to the formalization and finalization of this transformative policy initiative.

The final draft of the State-Owned Enterprises Policy 2023 will be presented to the federal cabinet for endorsement.

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