Federal cabinet approves merger, dissolution of 82 SOEs

The federal cabinet on Tuesday approved recommendations submitted by the Rightsizing of the Federal Government Committee for merger and dissolution of 82 State-Owned Enterprises (SOEs), a statement from the Ministry of Information and Broadcasting read.

According to the details, the cabinet, which met in Islamabad today with Prime Minister Shehbaz Sharif in the chair, while assenting to the recommendations, also constituted a committee to protect the interests of employees, who will be affected by the merger and dissolution of various departments.

“These 82 entities are being transformed into robust institutions through digitisation, smart management, efficient governance, transparency, and swift implementation to provide better facilities to the common man,” the statement added.

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The federal cabinet was informed that in the first phase, enforcement of the committee’s recommendations had begun in six ministries.

“This will help improve government performance, correct use of human capital, and policymaking as well as end unnecessary delays in implementation of decisions.”

According to the statement, the cabinet was briefed that saving worth $130 million had been made by stopping the import of urea and providing “uninterrupted gas supply” to urea factories.

The prime minister appreciated the decisions taken by the ministries of Finance, Energy and National Food Security to ensure provision of unhindered supply of urea fertiliser during the upcoming Rabi crop season, the statement further said.

Continuation of austerity measures

The cabinet was also given briefing on the implementation of austerity measures to reduce government expenditure.

According to the statement, the cabinet approved the continuation of the austerity measures, which include voluntary waiver of salary by cabinet members, ban on purchase of government vehicles other than essential vehicles such as ambulances, ban on purchase of new equipment and machinery, creation of new government posts, unnecessary travel abroad at government expense, and ban on medical treatments abroad.

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The cabinet condemned in strongest terms the incidents of terrorism in Balochistan and also offered fateha for the martyred civilians and security personnel.

The cabinet emphasised taking strict action against the terrorist elements involved in such incidents.