February, 22, 2024
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Government Revamps State Bodies, Eyes Privatization

Government Revamps State Bodies, Eyes Privatization

Infostani Sources- The government has fulfilled another condition of the IMF, as it has decided to place Radio Pakistan, NHA, Pakistan National Shipping Corporation, and Postal Services under independent boards. President Arif Alvi has approved the ordinances related to these four institutions. Acting on the Prime Minister’s advice, the President approved the Pakistan Broadcasting Corporation Amendment Ordinance 2023, the NHA Amendment Ordinance 2023, the Pakistan Postal Services Management Board Amendment Ordinance 2023, and the Pakistan National Shipping Corporation Amendment Ordinance 2023. Sources indicate that these ordinances have removed Radio Pakistan, NHA, Pakistan National Shipping Corporation, and Postal Services from Govt control, granting them independent status.

The sources suggest that a framework has prepared to change the management structure of four dysfunctional Govt institutions. The independent management board of public institutions will consist of 6 to 12 members. In the second phase, the law ministry is likely to enact an ordinance soon to release PTV, Kasham, and Pakistan Steel Mill from Govt patronage. Simultaneously, the federal Govt has decided to make new recruitments in future government institutions on a contract basis. The government will gradually privatize all commercial government institutions. The Ministry of Finance has issued the notification of Ownership and Management Policy of Govt Institutions 2023, applicable to all government-owned enterprises.

Government Revamps State Bodies, Eyes Privatization
The Ministry of Finance states that the Govt will maintain control over strategically sensitive institutions.

Government Financial Reforms: Control, Criteria, and Categorization

The Ministry of Finance states that the Govt will maintain control over strategically sensitive institutions. Determining the future of some after reorganization. Institutions experiencing financial or operational failure will be termed as sick companies. Necessitating a formulated plan for recovery, reconstruction, and restructuring. Strict criteria will guide decisions for senior management, such as Chief Financial Officers, CEOs, and Secretaries Treasurers. Job retention or discharge will be based on merit, with a one-month notice given for unsatisfactory performance.

Within six months of implementing the policy, government-owned enterprises will categorize. All government-owned institutions will create an efficient internal audit procedure. According to the document, a cabinet committee will establish for government-owned institutions to enforce the new policy. Also, a central monitoring unit will monitor their functioning. The proposed unit will analyze government institutions’ business plans and make recommendations. The Central Monitoring Unit will recruit competent and experienced staff. Also, the Ministry of Finance will prepare an Independent Board of Directors for these institutions according to the policy. The Govt will update the Government Owned Enterprises policy every five years.

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