ISLAMABAD: The Federal Cabinet has asked Ministries/ Divisions to further rationalise the necessity to categorise any State Owned Entity (SOE) as “Strategic” or “Essential” in preparation for the upcoming meeting under the chairmanship of Prime Minister, well informed sources told Business Recorder.

These instructions were issued by the Federal Cabinet on August 2, 2024, after detailed briefing on SOEs, which are to be privatised or declared as strategic or essential entities.

Secretary Cabinet shared category wise break-up of the SOEs with the federal cabinet for further decision.

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According to him, total number of SOEs identified by the Finance Division in Triage is 84 whereas total number of SOEs considered by Cabinet Committee on State Owned Entities is 61.

He further noted that total number of SOEs categorised as “Essential” are 15 whereas total number of SOEs defined as “Strategic” are 5.

Secretary Cabinet further stated that total number of SOEs categorised to be privatised are 18 whereas total number of SOEs considered by CCoSOEs are 22, total number of SOEs in pipeline for CCoSOE’s considerations are seven. Ministries that have not submitted their cases are 3. The sources said the Cabinet observed that the exercise required a careful consideration and a sound rationale for categorising the SOEs as “Strategic” or “Essential” to decide which SOEs would stay with the government, privatised or wound up.

Some members of the Cabinet were of the view that the exercise needed further deliberation and recommended that a meeting with Prime Minister in chair should be held to finalise the exercise.

After detailed discussion, the Cabinet directed all Ministries/ Divisions concerned to further rationalise the necessity to categorise any SOE as “Strategic “or “Essential” in preparation for the upcoming meeting under the chairmanship of PM Shehbaz Sharif.

Copyright Business Recorder, 2024