The Federal Cabinet on Wednesday gave approval for replacement of Chief Executive Officers (CEOs) of eight Pubic Sector Enterprises by June 30 as well as formation of independent and professional Board of Directors by April 30.
The meeting chaired by the Prime Minister Syed Yousuf Raza Gilani, took the decision to carry out restructuring of Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM), Pakistan Electric Power Company (Pepco), Pakistan Railways (PR), National Highway Authority (NHA), Pakistan Agricultural Storage and Services Co-operation (Passco), Trading Corporation of Pakistan (TCP) and Utility Stores Corporation (USC).
The Cabinet was considering a report of the Cabinet Committee on Restructuring (CCoR) of Public Sector Enterprises, which has made recommendations to save these enterprises from loss of billions of rupees. In pursuance of the decision to introduce austerity, CCoR was constituted in a special Cabinet meeting held on December 16, 2009.
They declared that it was imperative to devise ways and means to stop this ill management and lack of commitment, resulting in massive losses of public funds, which could have been used for the development of the country and welfare of the people.
He said better management of these PSEs through restructuring would be able to create fiscal space to provide relief to common man. The objective of restructuring, he added, should be to improve the performance of the PSEs and reduce burden on national exchequer.
The Cabinet expressed its strong resolve to optimise the functional ability of PSEs and emphasised that those have a critical significance not only for the national economy, but also for better living standards of all segments of the society. The Cabinet highlighted their role in nation building and impact on the socio-economic well-being of the public.
The meeting gave approval to proposals, which were evolved through intensive deliberations by the Economic Reforms Unit of the Ministry of Finance. It was also decided that the formation of independent and professional Boards of Directors and appointment of CEOs would be proposed by the line ministry in consultation with the CCoR and the restructuring plan would be presented by each ministry to the Cabinet for decision.
The Prime Minister in his opening remarks directed the Cabinet Division to submit a progress report on the implementation status of the Cabinet decisions in the next meeting. He also directed that recommendations of the 19 Sub Committees of the Cabinet on different subjects should also be submitted in the next meeting. Such a monitoring of the Cabinet decisions has indeed been effected for the first time.
The Cabinet granted approval, in principle, to start negotiations with South Korea on MoU on mutual co-operation for environmental education development. The purpose of the proposed MoU is aimed at sharing benefit from the Korean experience in the field of environmental training and education. It will also help foster capacity building, share the experience in the development of environmental technology and industry and sustainable development for creating clean environment for better quality of life.
The Cabinet approved signing of MoU on geo-sciences cooperation between the China Geological Survey and Geological Survey of Pakistan. Areas of cooperation would include research and correlation of basic geology, geological maps compilation and metallurgic correlation, geo-database on construction and sharing, mineral resources assessment and exploration technology, geological environment and geo-hydrology, and modern technology and methodology of geo-samples analysis.
The Cabinet granted approval, in principle, for initiation of negotiations on the draft agreement on scientific and technological cooperation between the government of Pakistan and the government of the United Mexican States. The main objective of the agreement is to initiate, encourage and promote science & technology cooperation in the areas of biotechnology, engineering sciences, material sciences and renewable energy resources.
The Cabinet accorded approval to sign MoU on "Australia-Pakistan Development Partnership" with the government of Australia. This will broaden the area of development assistance in health, education, technical training, rural development, agriculture, livestock, economic reform programme, good governance and reconstruction and rehabilitation of areas affected by terrorism. The signing of MoU will lead to Australia's enhanced assistance during the period 2010-13, which would be in the range of A $211.2 million.
The Cabinet also accorded its approval to start negotiation for signing of MoU with Republic of Tunisia aiming at close co-operation between the Trade Development Authority of Pakistan and Export Promotion Centre of Tunisia. The signing of MoU will lead to further improve and build the existing level of co-operation between the two countries in the areas of trade relations, sharing of information, organise training programmes as well as ensure participation in the fairs and exhibitions arranged in the two countries.
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