ISLAMABAD: Adviser to the Prime Minister on Finance, Dr Abdul Hafeez Monday directed introduction of another category in the privatisation list where the ownership of Sate-Owned Entities may be kept government and the entity can be operated by the private sector for better management along with discussion on the prime minister's instruction to conduct forensic audit of loss-making entities.

The adviser on finance directed this, while chairing a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs), a proposal with regards to carrying out forensic audit of the major loss making SOEs on the instructions of Prime Minister Imran Khan.

However, the adviser, who was chairing the meeting, directed that before taking a final decision on the proposed forensic audit, detailed information on the following aspects might be shared with the CCoSOEs in its next meeting

He wanted that the next meeting should be informed about the availability of sufficient forensic audit expertise within the AGP as well as the estimated cost in case the audit was to be outsourced to leading audit firms with proposed time duration of forensic audit, and proposed list of loss-making entities for forensic audit.

He further advised that line ministries/divisions might also be consulted to select the companies and that the companies might not be concentrated in a particular sector.

He instructed that those proposals needed to be finalised by the next meeting of the CCoSOEs.

The meeting was given detailed briefing on the State-Owned Entities for (i) liquidation, (ii) privatisation and (iii) retention under government ownership, on the basis of economic rationale and financial performance of the SOEs.

The CCoSOEs discussed in detail the proposed SOEs for retention, privatisation and for restructuring.

The advisor directed that the list should be reviewed and revisited till the next meeting and a new category might be introduced in the list where ownership might be retained by the government and the entity could be operated by the private sector for better management.

A draft Law on the State-Owned Enterprises was also discussed in the meeting with directive by the adviser that the law may be reviewed further in consultation with the line ministries/divisions and the Law Division.

Copyright Business Recorder, 2020