Cabinet panel orders restructuring of 9 SOEs boards.

ISLAMABAD: The government is all set to unveil a 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 the plan is now ready to be presented to Prime Minister Shahbaz Sharif and cabinet members for their approval.

On Wednesday, the Cabinet Committee on State-Owned Enterprises (CCoSOEs) approved the restructuring of the boards of several entities to cover annual losses of about Rs 1 trillion to the state. The committee approved the restructuring of boards, so that decisions could be implemented in various institutions. Not all SOEs are targeted for closure under the right-sizing plan and the finance ministry is set to release a report on their losses soon.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of CCoSOEs at the Finance Division on Wednesday, according to an official release. Federal Minister for Planning, Development and Special Measures 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 attended the meeting. Governor State Bank of Pakistan (SBP), Executive Director Securities and Exchange Commission of Pakistan (SECP), Secretaries and senior officers of Federal Finance Division.

It reviewed the summary by the Cabinet Division for the reorganization of the Board of Directors of the Printing Corporation of Pakistan (PCP). The board, which earlier consisted only of ex-officio members, was required to include a majority of independent directors as per the Ownership and Management of SOEs Policy 2023. After detailed discussion, the committee approved the new composition of the board, which includes five independent directors, as recommended.

A summary of the Ministry of National Food Security and Research regarding the appointment of independent directors for two vacant posts in the Board of Livestock and Dairy Development Board (LDDB) was also considered. The committee approved the proposal. The Committee also reviewed the Ministry of Railways’ summary regarding the restructuring of the Boards of Directors (BoDs) of the four Railway SOEs. Board to reconstitute the BoDs of Pakistan Railways Advisory and Consultancy Services (PRACS), Pakistan Railways Freight Transportation Company (PRFTC), Railways State Development and Marketing Company (REDEMCO) and Railway Construction Pakistan Limited. The recommendations of the Nomination Committee (BNC) (RAILCOP) were approved. These included recommendations of both former and independent directors.

The Committee then reviewed the summary of the Ministry of Overseas Pakistanis and Human Resource Development regarding the restructuring of the Board of Governors of the Overseas Pakistanis Foundation (OPF). It was recommended to include two independent members in the board and the proposal was approved.

A summary was submitted by the Ministry of National Food Security and Research for the appointment of independent directors to 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 the 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 by the Ministry of Finance for the financial performance of SOEs for the first six months of FY2024. Financial performance, business plan analysis, risk analysis, corporate governance, and compliance were discussed. A presentation on these issues was made by the Finance Secretary. The Committee concluded the meeting by reviewing the implementation of previous decisions taken by CCoSOEs to ensure compliance. DG Central Monitoring Unit (CMU) of Finance Division gave a presentation.