Govt takes multiple steps to reduce losses in SOEs: Solangi

Pakistan Feb, 27 2024
Govt takes multiple steps to reduce losses in SOEs: Solangi
  • 126
  • 0

ISLAMABAD: Caretaker Federal Minister for Information, Broadcasting and Parliamentary Affairs Murtzaz Solangi informed the Senate on Monday that the 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 the performance of SOEs, which according to a World Bank report is worse in Asia, he said further reforms, including the restructuring of the loss-making institutions would be decided by the newly elected government and the Parliament.

The minister said "There is consensus on the need to end losses in State-Owned Enterprises (SOEs); however, there are differing opinions. Some believe that privatization is the sole solution, while others argue for professional management to enhance their efficiency."

He said "The final decision on this matter will be made by the elected government and the parliament," adding that more than 200 institutions were currently experiencing losses, including those in the power, communication sectors, and Pakistan Railways.

According to a report from the Ministry of Finance, he said, these institutions had incurred losses amounting to Rs730 billion. However, profitable institutions earned an overall income of Rs570 billion, he added.

He informed the House that the net loss was approximately Rs160 billion, with sectors such as power, Pakistan International Airlines (PIA), National Highway Authority (NHA),  Railways and Steel Mills contributing to these losses.

He highlighted that losses incurred by the NHA alone were close to Rs170 billion. A policy regarding SOEs was approved in September 2023 to assess their performance, with the Ministry of Finance establishing a Central Monitoring Unit for this purpose.

Furthermore, amendments have been made to laws for reforms in various institutions, including NHA, the Minister informed the Senate.Senator Mushtaq Ahmed claimed that 50 percent of Pakistanis were living below the poverty line and facing high inflation.

Senator Sania Nishtar asked for the privatization of the loss-making SOEs to avoid burden on the national exchequer.

Published in The Daily National Courier, February, 28 2024

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.

Our Correspondent
Our Correspondent https://www.dailynationalcourier.com/author/our-correspondent
Daily National Courier is a leading morning English newspaper of twelve pages covering all international and national political developments on 24/7 basis.

NC Big Stories

£190m Case: Court delays verdict on PTI founder

ISLAMABAD: The Accountability Court in Islamabad will hold a hearing on the £190 million reference against PTI founder Imran Khan and his wife, Bushra Bibi, tomorrow. However, the court will not announce its verdict as originally expected. The...

PM Sharif forms committee for talks with PTI

ISLAMABAD: Prime Minister Shehbaz Sharif has announced the formation of a government negotiating committee to hold talks with the Pakistan Tehreek-e-Insaf (PTI), following a recent statement from PTI Chairman Barrister Gohar Ali Khan. Khan revealed t...

Best 8 winter foods to keep you warm and healthy

Winter brings a chill in the air, and along with it, a craving for warm, comforting foods that not only satisfy our hunger but also provide nourishment to help us stay healthy throughout the season. Cold weather often leads to a dip in our energy le...

Challenges in eradicating polio

The last anti-polio campaign of this year is underway across the country and a total of more than 4.5 million children across the country have been targeted to be vaccinated against polio by December 22.   Although efforts have been underway in...

More like this
Related

CM Gandapur launches helicopter service to support Kurram

PESHAWAR: Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur has launched a helicopter service to assist in managing the growing tensions in the Kurram region. According to government officials, an MI-17 helicopter made two flights from Peshawar to...

£190m Case: Court delays verdict on PTI founder

ISLAMABAD: The Accountability Court in Islamabad will hold a hearing on the £190 million reference against PTI founder Imran Khan and his wife, Bushra Bibi, tomorrow. However, the court will not announce its verdict as originally expected. The...

PM Sharif forms committee for talks with PTI

ISLAMABAD: Prime Minister Shehbaz Sharif has announced the formation of a government negotiating committee to hold talks with the Pakistan Tehreek-e-Insaf (PTI), following a recent statement from PTI Chairman Barrister Gohar Ali Khan. Khan revealed t...

Pak Army will exterminate terrorism, extremism in all forms: COAS

RAWALPINDI: Chief of Army Staff (COAS) General Asim Munir has expressed resolve that the Pakistan Army, in collaboration with law enforcement agencies (LEAs), remains determined to eliminate terrorism and extremism in all its forms, ensuring the rest...
Need Help? Chat with us