Categorisation of SOEs: SMEDA declared as essential, PNSC as strategic

The Cabinet Committee on State-Owned Enterprises (CCoSOEs) on Monday approved a summary to categorise the Small and Medium Enterprises Development Authority (SMEDA) as an essential SOE, the Finance Division said.

The committee also approved the categorisation of the Pakistan National Shipping Corporation (PNSC) as a strategic SOE.

Federal Minister for Finance & Revenue, Senator Muhammad Aurangzeb, presided over the meeting of the CCoSOEs at the Finance Division today.

Federal cabinet approves merger, dissolution of 82 SOEs

The meeting focused on various critical issues related to the management and strategic direction of key SOEs.

The committee also decided that the Trading Corporation of Pakistan (TCP) might be categorised as an essential SOE under the SOEs Policy, 2023.

Small and Medium Enterprises Development Authority (SMEDA)

During the meeting, a summary of the Ministry of Industries and Production regarding the categorisation of SMEDA by CCoSOEs was discussed.

“Keeping in view the importance of SMEDA for facilitation of SMEs, it was categorised as Essential SOE in the light of Para-11 of SOEs Policy,” the statement read.

According to the SOEs Ownership and Management Policy, 2023, essential SOEs refer to the SOEs that are critical for the execution of government policies.

Pakistan National Shipping Corporation (PNSC)

Similarly, the committee also approved a proposal of the Ministry of Maritime Affairs to declare the PNSC as a strategic SOE under Para-9(a) of Chapter-3 of the SOEs Ownership and Management Policy, 2023.

“Moreover, it was also decided that the option increased private shareholding in PNSC may also be explored.”

Strategic SOEs refers to the SOEs that are completely/partially engaged in strategic functions. The strategic functions refer to the outcomes that have significant strategic, security, or social importance in addition to economic values for the country.

Categorisation of commercial SOEs: PM irked by delay in submission of summaries

The committee also deliberated on a summary from the Ministry of Maritime Affairs regarding the appointment of independent directors to the PNSC and recommended the appointment of the proposed independent directors to the cabinet.

Trading Corporation of Pakistan (TCP)

The CCoSOEs further discussed a summary of the Ministry of Commerce regarding the plan to reinvigorate the TCP.

“It was decided that in view of the peculiar nature of the entity, TCP may be categorised as an essential SOE under the SOEs Policy, 2023,” the Finance Division said. “It was further decided that a detailed financial plan of the entity should be prepared, which should address the question of settlement of its liabilities.”

Independent directors at EXIM Bank

A summary of the Finance Division regarding the appointment of two independent directors on the Board of the Export-Import (EXIM) Bank of Pakistan was considered and approved.

Finance Minister says no such thing as strategic state-owned enterprises

The committee endorsed the appointments of Ayesha Aziz and Imran Maqbool as independent directors on EXIM Bank’s Board, in accordance with Section 17 of the Export-Import Bank of Pakistan Act, 2022.

Reconstitution of KPT Board of Trustees

The reconstitution of the Board of Trustees of Karachi Port Trust (KPT) for the term 2024-2026 was also discussed based on a summary from the Ministry of Maritime Affairs.

“The committee approved the proposal of the ministry and recommended the same for approval of the cabinet,” the Finance Division statement said.