SOEs: Tarin tells Finance Division to give updated analysis to Cabinet

ISLAMABAD: Federal Minister for Finance Shaukat Tarin Wednesday directed the Finance Division to present an updated analysis of the State-Owned Enterprises (SOEs) up to June 2020 before the Cabinet along with suggestions for a way forward and to form a team of professionals with relevant experience to review the performance of the SOEs against the set benchmarks on monthly and quarterly basis.

The minister was presiding over a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs).

The secretary Finance Division briefed the Committee on the performance of the SOEs over the years.

A comparative analysis was presented from fiscal year 2013-14 to fiscal year 2018-19.

The Finance Ministry stated that the Committee noted that the government’s broad-based reform process including timely completion of the SOEs Board of Directors and appointments at managerial positions along with strict fiscal discipline has significantly improved the performance of the SOEs resulting in reduction of aggregate losses from Rs286 billion in 2017-18 to Rs143 billion in 2018-19.

These SOEs have even registered marginal profit of Rs31 billion during fiscal year 2018-19, excluding the National Highways Authority (NHA).

The secretary finance further updated the forum that the Finance Division is in the process of finalisation of the SOEs Report for the fiscal year 2020, which shall be finalised by end September 2021.

The CCoSOEs acknowledged the valuable contribution of the concerned ministries/divisions particularly Advisor to the Prime Minister Dr Ishrat Hussain on categorisation of the SOEs through triage and drawing up holistic proposals for restructuring and strengthening its operations after robust engagement and consultation with all the relevant stakeholders.

The finance minister directed the Finance Division to present an updated analysis of the SOEs up to fiscal year June 2020 before the Cabinet along with suggestions for a way forward and to form a team of professionals with relevant experience to review the performance of the SOEs against the set benchmarks on monthly and quarterly basis.

Federal Minister for Privatisation Muhammad Mian Soomro, Advisor to the PM on Commerce Abdul Razak Dawood, Advisor to the PM on Institutional Reforms and Austerity Dr Ishrat Hussain, federal secretary finance, federal secretary power and other senior officials participated in the meeting.

Copyright Business Recorder, 2021