The Federal Cabinet is likely to constitute a five-member secretary's committee to prepare a strategy for restructuring, privatisation or winding up of 414 Public Sector Entities (PSEs), well-informed sources told Business Recorder.
Giving the background, sources said the government constituted a task force on austerity and restructuring of government with overarching terms and reference aiming at restructuring and re-organisation of various organisational entities at the federal, provincial and municipal levels. The task force was assisted by the Institutional Reforms Cell (IRC) established on September 10, 2018 which carried out a comprehensive assessment of each Organisational Entity (OE) working under the government and a proposal suggesting regrouping and restructuring of the OEs aiming at greater efficiency, effective decision making and improved service delivery.
The OEs were assessed and proposed to be grouped into following seven categories for action: (i) to be privatised or transferred to Sarmaya Pakistan Limited (43); (ii) to be transferred to the provincial governments, Islamabad Capital Territory and Gilgit Baltistan in the light of 18th constitutional amendment(14); (iii) to be liquidated, wound up or closed down in cases where entities have lost jurisdiction for their continued existence (8); (iv) to be transformed into independent Commission/Councils/Committees with minimum involvement of the government; (v) to be merged with other entities in instances of overlapping and duplication of responsibilities (35); (vi) to be reorganised as training and policy support institutes (17); and (vii) to be retained by the federal government only in two broad categories as executive departments (87) and autonomous bodies (237).
In order to simplify the running of the government, the multiple categories of entities working under the Ministries/Divisions have been proposed to be classified into broader categories, ie, Autonomous Bodies (ABs) and Executive Departments (EDs). The Ministry/Division would be responsible for policy and plan formulation and monitoring while execution and implementation would be the sole responsibility of the ABs and EDs.
Similarly, the regulatory agencies would be independent of the line Ministry/Division to be located in the Cabinet Division for administrative purposes.
The recommendations of the task force were reviewed by the secretariat's committee and the modifications proposed by the committee were incorporated accordingly. The proposed recommendations pertaining to each Ministry/Division were brought to the attention of the Ministers-in-Charge by the Institutional reform Cell (IRC). The cell has also consulted the Minister for Law & Justice and his observations have been incorporated in the report of IRC.
The IRC's report was also submitted to the Prime Minister on May 16, 2019 for seeking permission for its placement before the Cabinet. However, the report was returned by the Prime Minister's office with certain observations.
The report tendered by IRC suggests restructuring and re-organisation of 441 organisational entities which are likely to entail fulfillment of procedural and legal formalities which require a structured implantation and follow-up mechanism at the appropriate level to be put in place. Accordingly, five member implementation committee comprising the secretaries of relevant departments will be constituted, ie, Secretary Establishment Division (chair), Secretary Finance, Secretary Law, Secretary Cabinet and Secretary of the Ministry/Division concerned (on invitation).
The committee will work out an implementation strategy/work plan in consultation with the task force taking into consideration the following aspects: (i) cost benefit analysis specific to the entities concerned; (ii) expected outcome of the proposed transformation with reference to service delivery; (iii) constitutional and legal ramifications/consideration; and (iv) issues pertaining to terms and conditions of civil servants and impact of the re-organisation exercise on carrier progression of the existing civil servants.-MUSHTAQ GHUMMAN
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