ISLAMABAD: Caretaker Federal Minister for Information, Broadcasting, and Parliamentary Affairs Murtzaz Solangi on Monday informed the Senate that the caretaker government had taken multiple steps to reduce losses in State-Owned Enterprises (SOEs).
Winding up the debate on a motion moved by Senator Mushtaq Ahmed regarding SOEs’ performance, which, according to a World Bank report, is worse in Asia, the minister said further reforms, including the restructuring of the loss-making institutions, would be decided by the newly elected government and the Parliament.
He said that there is consensus on the need to end losses in SOEs; however, there are differing opinions. Some believe that privatization is the only solution, while others argue for professional management to enhance their efficiency.
Solangi said the final decision on the issue would be made by the elected government and the Parliament, adding that over two hundred institutions were currently experiencing losses, including those in the communication, power sectors, and Pakistan Railways.
According to a report from the Ministry of Finance, the minister said, these institutions had incurred losses amounting to 730 billion rupees. However, profitable institutions earned an overall income of 570 billion rupees.
He informed the Senate that the net loss was approximately 160 billion rupees, with sectors such as power, Pakistan International Airlines, National Highway Authority, Railways, and Steel Mills contributing to these losses.
He said that losses incurred by the NHA alone were close to 170 billion rupees.
Government devises policy to asses SOEs’ performance
A policy regarding SOEs was approved in September last year to assess their performance, with the Ministry of Finance establishing a Central Monitoring Unit for this purpose. Moreover, amendments have been made to laws for reforms in different institutions, including NHA, Solangi informed the Senate.
Senator Mushtaq Ahmed claimed that 50% of Pakistanis were living below the poverty line and facing high inflation.
