ISLAMABAD, Feb 26 (APP): 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.
APP/zah-mag
