Islamabad: The Federal Minister for Finance and Revenue, Shamshad Akhtar, has highlighted that government-owned institutions are incurring annual losses of 500 billion rupees, emphasizing the urgent need for improving the operational efficiency of these institutions.
Minister Shamshad Akhtar, who serves as the custodian of the Ministry of Finance and Revenue, has stated that decisions regarding privatization will be based on a carefully prepared list. The policy being formulated for State-Owned Enterprises (SOEs) will include the independent appointment of board members as the drafting process progresses.
He further mentioned that board members will enjoy job security, and the appointment of CEOs will undergo a thorough review. The government will refrain from interfering in the operations of these state-owned institutions, and efforts are underway to revamp their organizational structures.
During a media briefing, Minister Shamshad Akhtar acknowledged the significant historical role played by government enterprises in the nation’s development, particularly in sectors where the private sector hesitated to invest. Currently, there are 12 SOEs in Infrastructure, Transport, and Information Technology, 14 in Manufacturing, Mining, and Engineering, 8 in Oil and Gas, 20 in Power, and 4 in Trading and Marketing.
In the 2019 fiscal year, the total revenue generated by all SOEs amounted to approximately 4 trillion rupees, with their combined asset book value reaching 19 trillion rupees. These state-owned entities provide employment to around 450,000 individuals.
Minister Shamshad Akhtar acknowledged that the effectiveness of SOEs has diminished over time. In 2019, commercial Special Economic Zones (SEZs) incurred losses of 143 billion rupees, and by 2020, the annual losses of government-owned enterprises had escalated to 500 billion rupees. He expressed the intent to continue the positive initiatives undertaken in the past regarding state-owned enterprises.