Updated on
Summary
The Federal Cabinet on Wednesday approved restructuring of eight major Public Sector Enterprises (PSEs) to bring about financial discipline, revival and good governance. The decision was taken after considering a report of the Cabinet Committee on Restructuring (CCOR) of Public Sector Enterprises that made recommendations to save these enterprises from loss of billions. The Cabinet Committee on Restructuring (CCOR) of Public Sector Enterprises (PSEs) was constituted in a Special Cabinet meeting held on December 16, last to introduce austerity measures. Prime Minister Yousaf Raza Gilani, chairing the Cabinet, said it was imperative to devise ways and means to stop ill management and lack of commitment, resulting in massive losses of public funds which could have been used for development and welfare of the people. He said better management of these Public Sector Enterprises through restructuring would create fiscal space to provide relief to the commonman. The objective of restructuring, he added, should be to improve the performance of PSEs and reduce burden on the national exchequer. The Cabinet expressed its strong resolve to optimize the functional ability of Public Sector Enterprises (PSEs) and emphasized that those having a critical significance not only for the national economy but also for better living standards of all segments of our society. The Cabinet highlighted the role of PSEs in nation building and their impact on the socio-economic well being of the people. The Cabinet decided to carry out restructuring of eight mega PSEs through a definite roadmap. These include; Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM), Pakistan Electric Power Company (PEPCO), Pakistan Railways (PR), National Highway Authority (NHA), Pakistan Agricultural Storage and Services Cooperation (PASSCO), Trading Corporation of Pakistan (TCP) and Utility Stores Corporation (USC). The Cabinet approved these proposals which were evolved through intensive deliberations by the Economic Reforms Unit of the Ministry of Finance. It was also decided that the formation of independent and professional Boards of Directors and appointment of CEOs would be proposed by the line Ministry in consultation with the CCOR and the restructuring plan would be presented by each Ministry to the Cabinet for decision. The Prime Minister directed the Cabinet Division to submit a progress report on the implementation status of decisions in the next Cabinet meeting.
