Senate body passes bill seeking ‘clearer guidelines’ for SOEs’ operation, governance

The Senate Standing Committee on Finance and Revenue passed on Wednesday a bill aimed at providing clearer guidelines for the operation and governance of state-owned enterprises (SOEs), an official release said.

A meeting of the committee was held at the Parliament House, Islamabad, under the chairmanship of Senator Saleem Mandviwalla. The committee took up the Private Member Bill titled the State-Owned Enterprises (Governance and Operation) (Amendment) Bill, 2024, presented by Senator Anusha Rehman Ahmed Khan during the Senate sitting of November 4, 2024.

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“After discussion, the committee unanimously approved the amendment to the bill, aimed at providing clearer guidelines for the operation and governance of state-owned enterprises,” the statement read.

As per details, the key debate centered around Section 3(1) of the SOE Act 2023, which specifies that the Act applies to all public sector companies (PSCs) and other corporate bodies controlled by the federal government.

“It was noted that the Act does not apply to entities where the federal government’s shareholding falls below 51% following privatisation.”

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While the Ministry of Finance argued that the existing clause was sufficient to address concerns regarding the privatisation of the PSCs, Senator Anusha Rehman emphasised the need for clarity on the definition of SOEs, especially in cases where privatised entities continue to face legal ambiguity regarding their status.

“As lawmakers, we should make laws that evolve with changing times to benefit the public at large,” Senator Farooq H Naek was quoted as saying.

“The committee agreed, passing the bill with full consensus.”

FBR’s purchase of 1,010 vehciles

Another debated issue in the committee meeting was the Federal Board of Revenue’s (FBR) controversial decision to purchase 1,010 vehicles, with Senators expressing strong opposition to the move.

Senator Faisal Vawda called for an immediate halt to the purchase, arguing that the FBR officers were being rewarded with vehicles despite a significant tax shortfall of Rs384 billion.

“This is open corruption, and we will not sit idly by,” Senator Vawda asserted, accusing the FBR of misusing government funds.

He proposed that the committee write a letter to Prime Minister Shehbaz Sharif to halt the purchase, demanding a competitive bidding process for any future vehicle acquisitions.

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FBR officials defended the decision, stating that the purchase had been approved by the Economic Coordination Committee (ECC) and the Cabinet, but the committee remained resolute in its stance to cancel the purchase order.

“If these vehicles are bought, I will take the matter to NAB and FIA,” Senator Vawda warned, calling for further scrutiny into the issue.