ISLAMABAD: The Federal Cabinet has reportedly overturned two decisions of Cabinet Committee on State Owned Enterprises (CCoSOEs), well-informed sources told Business Recorder.
During discussion on October 22, 2024, the Federal Cabinet observed that since Pakistan Steel Mills was already closed the constitution of Board of Director - Pakistan Steel Fabricating Company Limited (PSFCL), a subsidiary of PSM, appeared to be unnecessary.
The Industries and Production Division explained that the Board of PSFCL was being constituted to take a decision on winding-up of the organisation. It was further clarified that both PSM and PSFCL were to be liquidated in due course.
CCP recovers Rs27m in penalties from PSM, Reliance Paints
The Cabinet argued that the matter should be resubmitted to the CCOSOEs after examining possible options to wind up the PSFCL (and other similar organisation) without constitution of a Board, which would entail avoidable time and expense. The Cabinet Secretary was tasked to assist in the matter.
With regard to declaration of National Disaster Risk Management Fund (NDRMF) as Strategic SOE as defined under SOE Policy, 2023, the Cabinet maintained that the mandate of NDRMF was similar to the mandate of the National Disaster Management Authority (NDMA), and that it may therefore be more appropriate to transfer it to NDMA instead of categorising it as an essential SOE.
The Planning, Development and Special Initiatives Division explained that the mandate of NDRMF was different from that of NDMA, as the former was focused on infrastructure projects to enhance Pakistan’s resilience to natural disasters, while the latter was concerned with immediate relief operations.
Moreover, NDRMF provided a common window to pool various contributions from a diverse base of bilateral and multilateral development partners. It was added the Government of Pakistan received funds from International Development Partners, including the Asian Development Bank, the World Bank and other bilateral partners for NDMRF, to carry out the assigned functions and a Subsidiary Grant Agreement had been signed to this effect.
The Cabinet, however argued that it was necessary to examine options to merge NDRMF with NDMA without compromising the functions being performed by the NDMRF, and directed that the case be placed before the Committee on Rightsizing of the Federal Government for its consideration.
The Cabinet considered the summary dated 17th October 2024, titled ‘ratification of the Decisions taken by the Cabinet Committee on State-Owned Enterprises (CCOSOEs)’ in its meeting held on 11th October 2024’ submitted by Cabinet Division.
And did not ratify the decision of CCoSOEs about Board of Pakistan Steel Fabricating Company Ltd. directing the Industries and Production Division to resubmit the case to CCOSOEs after examining possible options to wind up the PSFCL without constitution of a Board of Directors. The Cabinet Secretary was tasked to assist in the matter.
The Cabinet also did not ratify the decision of CCOSOEs about declaration of National Disaster Risk Management Fund (NDRMF) as Strategic SOE as defined under SOE Policy, 2023 and directed the PD&SI Division to submit the case to the Committee on rightsizing of the federal government after examining options to merge NDRFM and NDMA without comprising the functions being performed by NDMRF, for which purpose the mandate of NDMA could be expanded.
Copyright Business Recorder, 2024
Comments