September 21, 2023 (MLN): The government will approve the State-Owned Enterprises (SOEs) policy after one more review, caretaker Federal Minister for Finance and Revenue Dr Shamshad Akhtar stated during a live television address on Thursday.
She stated that the performance of SOEs has been below the potential/par performance, marred by inefficiencies.
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.
Cumulatively, these SoEs generated a profit of Rs280.98bn.
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.
According to the latest available data, the losses incurred by these SoEs in the year 2020 amounted to a staggering Rs418.97bn.
After deducting the Rs229.98bn in profits, the net losses stood at nearly Rs138bn.
Notably, a significant portion of these profits, Rs100.8bn, was generated from the oil and gas sector.
"The weak performance of these SoEs can be attributed to a lack of autonomy, external interference, inappropriate boards, and weak management," she remarked.
Dr. Shamshad Akhtar further emphasized that decisive actions will be taken toward these loss-making SOEs to make them profitable.
However, if, after these actions, the financial position of these entities cannot be improved, then they will be privatized.
“We anticipate updated figures for more recent years to become available within the next three months.” She added.
Currently, there are a total of 85 commercial SOEs, with 20 in the power sector and 17 in infrastructure.
This strategic restructuring and policy review are essential steps towards optimizing the performance and potential of these vital enterprises.
The caretaker minister shared the financial details of SOEs for the year 2020; however, she should have shared the details by the end of FY22 at the latest.
To note, Pakistan has around 200 SOEs which are engaged in a diverse range of activities, represent a significant part of Pakistan's economy, and provide and manage a significant share in the country's infrastructure, communication, and utilities sectors.
The optimal performance of SOEs is the requisite crucial factor for the government's medium to long-term macroeconomic resilience and growth prospects.
Copyright Mettis Link News
Posted on: 2023-09-21T13:49:16+05:00
