PCP, PR, OPF boards’ reconstitution gets nod: CCoSOEs concerned over Rs1trn annual losses by SOEs

ISLAMABAD: The Cabinet Committee on State-Owned Enterprises (CCoSOEs), Wednesday, expressed serious concerns over the continued losses incurred by state-owned enterprises (SOEs) of around Rs1 trillion annually and directed plugging loopholes and improving efficiency, it is learnt.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of CCoSOEs here on Wednesday.

The committee reviewed a summary from the Ministry of Finance regarding the SOEs’ financial performance for the first six months of the financial year 2024. Discussions focused on financial performance, business plan analysis, risk analysis, corporate governance, and compliance.

A presentation on these matters was delivered by the finance secretary.

SOEs cost kitty Rs5.598trn over 10 years, NA told

The committee also reviewed the implementation of previous decisions made by the CCoSOEs to ensure compliance. The presentation was given by Director General Central Monitoring Unit (CMU) of the Finance Division.

Official sources revealed that the meeting participants showed concerns over the continue losses incurred by the loss making entities and gave tough time to concerned departments. The committee directed for urgent solution to plug the loopholes in the system and make them efficient.

The committee reviewed a summary from the Cabinet Division regarding the reconstitution of the Board of Directors of the Printing Corporation of Pakistan (PCP).

The board, previously composed solely of ex-officio members, was required to include a majority of independent directors in accordance with the SOEs Ownership and Management Policy, 2023. After detailed discussions, the CCoSOEs approved the new composition of the board, which includes five independent directors, as recommended.

A summary from the Ministry of National Food Security and Research was considered, concerning the appointment of independent directors for two vacant positions on the Board of the Livestock and Dairy Development Board (LDDB). The committee approved the proposal.

The committee also reviewed the summary of the Ministry of Railways regarding the reconstitution of Boards of Directors (BoDs) of four Railways SOEs.

The recommendations of the Board Nomination Committee (BNC) for the reconstitution of BoDs of Pakistan Railways Advisory and Consultancy Services (PRACS), Pakistan Railways Freight Transportation Company (PRFTC), Railways Estate Development and Marketing Company (REDAMCO), and Railways Construction Pakistan Limited (RAILCOP) were approved. These included recommendations on both ex-officio and independent directors.

The committee then reviewed a summary from the Ministry of Overseas Pakistanis and Human Resource Development regarding the reconstitution of the Board of Governors of the Overseas Pakistanis’ Foundation (OPF). It was recommended to include two independent members on the board, and the proposal was approved.

A summary from the Ministry of National Food Security and Research was presented regarding the appointment of independent directors on the Board of Directors of the Fisheries Development Board (FDB). The committee approved the nomination of six independent directors.

The Ministry of National Food Security and Research also submitted a summary for the approval of the Board of Directors of the Pakistan Cotton Standards Institute (PCSI). The CCoSOEs approved the appointment of nine independent directors as recommended.

The meeting was attended by the Minister for Planning, Development and Special Initiatives, Ahsan Iqbal Chaudhry, Minister for Commerce Jam Kamal Khan, Minister for Economic Affairs Ahad Khan Cheema, Minister for Housing and Works Mian Riaz Hussain Pirzada, Minister for Science and Technology Dr Khalid Maqbool Siddiqui, Governor State Bank of Pakistan (SBP), Executive Director Securities and Exchange Commission of Pakistan (SECP), federal secretaries; and senior officers from the Finance Division.

Copyright Business Recorder, 2024