Finance Minister’s Policy to Rescue State-Owned Entities

Caretaker Finance Minister Dr. Shamshad Akhtar has unveiled the key components of the State-Owned Enterprises (SOEs) Policy during a press conference in Islamabad. The policy aims to rejuvenate select state-owned enterprises while considering privatization for others. It introduces the nomination of chief executive officers and independent directors, with a ban on ad-hoc interventions by ministries. Exemptions from PPRA Rules will require federal cabinet approval, and electronic financial data will be meticulously maintained.

Dr. Akhtar acknowledged the underperformance of many government-owned institutions, attributing their losses to mismanagement. The Ministry of Finance has drafted the SOEs policy to address these issues, with further consultation to come. The policy includes 85 commercial entities, with the appointment of independent board members for effective governance.

Also Read: Interim Finance Minister Urges FBR for Revenue Target Plan

The finance minister shared a list of the top ten profitable and top ten loss-making SOEs in FY2020, highlighting the need for reform. She emphasized that the government is committed to rectifying the financial challenges faced by these enterprises to promote Pakistan’s development and economic stability. The goal is to establish a more efficient and accountable system for SOEs.

Top 10 Profit-Making SOEs (FY2020):

1. Oil and Gas Development Company Limited: Rs. 100.08 billion
2. Pakistan Petroleum Limited: Rs. 49.4 billion
3. National Bank of Pakistan: Rs. 30.6 billion
4. Government Holdings (Private) Limited: Rs. 29.8 billion
5. National Power Parks Management: Rs. 28 billion
6. Port Qasim Authority: Rs. 15.4 billion
7. National Transmission and Despatch Company: Rs. 9.3 billion
8. Pak Kuwait Investment Company (Private) Limited: Rs. 6.3 billion
9. Faisalabad Electric Supply Company Limited: Rs. 6.08 billion
10. Pakistan Agricultural Storage & Services Corporation Limited: Rs. 6.02 billion

Top 10 Loss-Making SOEs (FY2020):

1. Quetta Electric Supply Company: Rs. 108.5 billion
2. National Highway Authority: Rs. 94.3 billion
3. Pakistan Railways: Rs. 50.2 billion
4. Sukkur Electric Power Company: Rs. 40.8 billion
5. Pakistan International Airlines: Rs. 36.07 billion
6. SSGCL: Rs. 21.4 billion
7. Pakistan Steel Mills: Rs. 20.6 billion
8. HESCO: Rs. 17.7 billion
9. Pakistan State Oil Company: Rs. 14.8 billion
10. Peshawar Electric Supply Company: Rs. 14.6 billion