ISLAMABAD: Interim Finance Minister Shamshad Akhtar stated that the caretaker government is in the process of formulating a policy to improve the evaluation of state-owned enterprises’ performance. However, she also disclosed that these enterprises were incurring losses amounting to Rs500 billion.
During a press conference in Islamabad, Akhtar spoke to reporters and noted that while some state-owned enterprises (SOEs) were profitable, these profits primarily stemmed from oil companies.
She highlighted that SOEs had suffered from mismanagement and inefficiency, partly due to the appointment of inappropriate individuals in Pakistan. The government’s objective, she stated, was to ensure improved management of these companies.
However, Akhtar clarified that once the SOEs had their own independent boards, the government’s role would conclude, and there would be no further interference. She emphasized the importance of independent board members with job security to ensure the smooth operation of the companies.
Additionally, she stressed the need for a clear separation between the office of the board chairperson and the chief executive officer for effective company governance.
Akhtar explained that the government aimed to remove SOEs from ministry controls to enhance their operational efficiency. She added that the government would retain control of “strategic” SOEs but gradually phase out others.
Akhtar also pointed out the necessity of carefully measuring public service obligations, considering the limits imposed by the IMF on the government’s actions.
