ISLAMABAD: In the aftermath of failure of the Sarmaya-e- Pakistan to make it operational for reviving sick units, Prime Minister Imran Khan has reconstituted Cabinet Committee on State Owned Enterprises (SOEs) with inclusion of key five ministers to make fresh efforts to overcome losses of Rs400-500 billion rupees per annum.According to notification issued by Cabinet Division on April 29, 2019 stating that the prime minister was pleased to re-constitute the Cabinet Committee on State Owned Enterprises (CCoSOEs) with immediate effect. The composition of CCoSOEs will be as under as prime minister, minister for power, minister for privatization, advisor to prime minister on finance, revenues and economic affairs, advisor to PM on industry and production and advisor to PM on institutional reforms and austerity. The PTI led government had replicated Malaysian and Singapore model to revive cash-bleeding SOEs through establishment of Sarmaya-e-Pakistan Limited (SPL) with appointment of board of directors led by private sector individual. Due to lack of legal and institutional backing, the SPL could not achieve any apparent progress so far since its approval in February last. Keeping in view continued losses, the PM finally decided to constitute another ministerial committee to take up issues relating to SOEs for controlling unbridled cash bleeding.Earlier, the SPL was established with paid up capital of Rs100,000 for this holding company, the government has so far not shared anything about implementation plan to convert loss making into profit making entities with timelines.The government took over six months to register the company with the SECP and afterwards three more months passed at a time when around 197 SOEs in totality are making net losses on daily basis.The Ministry of Finance admitted in its official report that SOEs turned into net loss making in 2015-16 when their net loss stood at Rs44 billion as earlier these entities were running into net profits. It was first time in recent history of the country when the SOEs run into loss-making entities on net basis collectively.
from The News International - National http://bit.ly/2GVHqoo
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