ISLAMABAD: The government has continued to strengthen the process of structural reforms in the economy, focusing on power sector and key public sector enterprises (PSEs) during the current fiscal year.
"The government's efforts have resulted in relative stability in these key sectors and fiscal discipline is being maintained," said the Fiscal Policy Statement 2011-12 published by Debt Policy Coordination Office of Ministry of Finance.
It said that the focus is on improving overall corporate governance, curtailing hemorrhaging, improve service delivery and reducing fiscal burden and moving to a structural surplus and increased public sector savings.
According to the document, implementation of Power Sector Reforms Plan 2010 has been expedited and upgraded under the Power Sector Recovery Plan 2011.
Dissolution of PEPCO was completed on October 30, 2011 with transfer of operational functions to National Transmission and Dispatch Company (NTDC) and Central Power Purchase Authority (CPPA), it added.
The CPPA has been operationalized and Board of Directors (BoDs) for all nine distribution companies (DISCOs) and GENCO Holding Company have been reconstituted while professional management is being inducted.
The timely payment of subsidy and improvement in recovery for public and private sector has resulted in improvement in liquidity.
Private sector running defaulters have been reduced, it said adding load management and conservation measures to save about 1000 MW are under implementation.
It said that Board of Directors of Pakistan Steel Mills (PSM) has been strengthened and implementation of a Business Plan for revitalization of PSM approved by the Cabinet has started.
The statement said that a restructuring framework for Pakistan Railways has been operationalized while freight operations and route rationalization is being pursued.
Under the financial restructuring plan, commercial borrowing has been obtained to repair 96 locomotives.
Restructuring plan for Pakistan International Airlines has been finalized which addresses corporate governance, human resource rationalization, financial and operational restructuring, engineering improvement, procurement and logistics, marketing and fleet, airport service and dispatch reliability.
The document said that government's efforts have resulted in relative stability in these key sectors and fiscal discipline is being maintained.
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