ISLAMABAD: The International Monetary Fund (IMF) is seeking the inclusion of state-owned enterprises (SOEs) - Pakistan National Shipping Corporation (PNSC), Radio Pakistan, and Post Office– under the Finance Division Central Monitoring Unit (CMU) and submission of their periodic performance to the federal cabinet.
Well-informed sources said that the Fund has asked for the inclusion of these SOEs to the list to be monitored by the Finance CMU and their periodic report should not only be presented to the federal cabinet but also to be published.
The periodic report to the federal cabinet would update the cabinet members about the performance of these entities and take measures to mend them.
IMF knows full well SOEs govt’s Achilles heel
The CMU’s role would be very important to ensure business plans of the SOEs are in line with the sectoral priorities.
The government has committed to the IMF in the SBA that to improve SOE oversight functions and provide better analysis at the aggregate SOE level, the authorities are advancing the delayed full operationalization of a CMU within the Ministry of Finance (MoF) and the issuance of its first periodic report on the performance of SOEs to the government (end-November 2023).
They added that the hiring process of the DG SOEs and others has not yet been completed despite applications received simply because of their inability to meet the criteria.
They added that the draft SOEs Policy, 2023, approved by the Cabinet Committee of State-Owned Enterprises (CCoSOEs) is being fine-tuned before submission to the federal cabinet for ratification. They added that the cabinet committee reviewed key elements of the policy in light of suggestions of the previous meetings, including governance structures, performance, and accountability mechanisms.
The caretaker finance minister Shamshad Akhtar has repeatedly stated that the government objective is to reduce the size of SOEs in public sector as well as to make those which remain in the public sector to be more competitive, accountable, and responsive to the needs of our citizens, she added.
She said that the code of conduct for Boards of Governance in the SOEs has to be formulated and implemented in letter and spirit.
This policy will pave the way for a more efficient utilisation of public resources and will enhance the overall economic landscape of Pakistan and ambiguities in the relevant laws and rules have to be corrected to improve corporate governance in the SOEs.
The code of conduct for the Boards of Governance in the SOEs would also be formulated and implemented in letter and spirit. The government believe that due to the mismanagement of the SOEs, the status quo cannot be allowed to continue and dividends have to be improved through enhanced efficiency, transparency, and sustainability of SOEs.
Copyright Business Recorder, 2023
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