Cabinet panel orders reconstitution of 9 SOEs boards

ISLAMABAD: The government is all set to unveil the right-sizing plan for more ministries/divisions in the coming weeks to cut costs and improve their efficiency.

Several meetings have already been held in recent weeks and now the plan is ready for its presentation before Prime Minister Shehbaz Sharif and cabinet members for their seal of approval.

On Wednesday, the Cabinet Committee on State-Owned Enterprises (CCoSOEs) approved the reconstitution of boards of many entities to plug the annual losses of around Rs1 trillion to the state kitty. The committee approved the reconstitution of boards, so the decisions could be implemented in different entities. All the SOEs are not meant to close down under the right-sizing plan and the Ministry of Finance is all set to release a report on their losses soon.

According to an official announcement, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the CCoSOEs at the Finance Division on Wednesday. The meeting was attended by Minister for Planning, Development and Special Initiatives Ahsan Iqbal, 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.

It reviewed a summary from the Cabinet Division for 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 per the SOEs Ownership and Management Policy 2023. After detailed discussions, the committee 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 also 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 Railway 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 on 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 for 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 approval of the Board of Directors of the Pakistan Cotton Standards Institute (PCSI). The committee approved the appointment of nine independent directors as recommended.

In addition, the committee reviewed a summary from the Ministry of Finance for the SOE’s financial performance for the first six months of the Financial Year 2024. The 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. The committee concluded the meeting by reviewing the implementation of previous decisions made by the CCoSOEs to ensure compliance. The presentation was given by the DG Central Monitoring Unit (CMU) of the Finance Division.