No bailout package approved for any state entity in current FY

ISLAMABAD, Mar 6: Minister for Finance, Revenue and Economic Affairs Asad Umar told the Senate on Wednesday that no bailout package had been approved for any state institution by the government during current fiscal year.

The minister, in a written reply to the question of Senator Muhammad Javed Abbasi during the question hour, said the government was cognizant of the adverse implications of such financial support to state entities, and intended to reduce their dependence on the government support through restructuring / revitalization.

The government, he said, planned to bring professional management and independent Boards of Directors to run the organizations on self- sustained basis.

The bailout packages were given to the under-performing / loss making entities to help them achieve financial viability within specified timeline, he added.

The minister said no cross sectoral impact analysis had been undertaken to evaluate the impact of the bailout packages on the under developed areas and communities.

Giving details of subsidy provided in last few years, he said a sum of Rs 6,750 million subsidy had been provided to the Pakistan Steel Mills during 2013-14 and Rs 11,750 million during the financial year 2014-15. Rs 712.5 million subsidy had been provided to the Printing Corporation of Pakistan during 2017-18, he added.  

He said the government had been providing financial support to various entities like the Pakistan International Airlines (PIA) and the Pakistan Steel Mills (PSM) through difference modes like equity injection, commercial financing under government guarantee, issuance of cash credit limit and provision of loans to enable them meet their immediate financial / capital expenditure requirements.

(APP)