Cabinet approves restructuring of eight major PSEs
ISLAMABAD (SANA): 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 Syed Yusuf 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 common man. 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; i. Pakistan International Airlines (PIA), ii. Pakistan Steel Mills (PSM), iii. Pakistan Electric Power Company (PEPCO), iv. Pakistan Railways (PR) v. National Highway Authority (NHA), vi. Pakistan Agricultural Storage and Services Cooperation (PASSCO), vii. Trading Corporation of Pakistan (TCP), viii. Utility Stores Corporation (USC).
Under the roadmap the PSEs will undertake; i. Formation of an independent and professional Board of Directors (BOD) by April 30th in each PSE. ii. Hiring of professional CEOs (nominated by the respective BOD) by June, 15th.
iii. Approval of Restructuring Plans of respective PSEs by Cabinet Committee on Restructuring (CCOR) by August, 31st.
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.
He also directed that recommendations of the 19 Sub Committees of the Cabinet on different subjects be submitted in the next meeting. He said such monitoring of Cabinet’s decisions has been unprecedented and taken up for the first time.
The Cabinet granted approval, in principle, to start negotiations with the Government of South Korea on MoU on mutual cooperation for environmental education development.
The proposed MoU is aimed at sharing benefit from the Korean experience in field of environmental training and education. It will also help foster capacity building, share experiences in development of environmental technology and industry and sustainable development for creating clean environment for better quality of life.
The Cabinet approved signing of MoU on geosciences cooperation between the China Geological Survey and Geological Survey of Pakistan.
Areas of cooperation would include research and correlation of basic geology, geological maps compilation and metallurgic correlation, geo-database on construction and sharing, mineral resources assessment and exploration technology, geological environment and geo-hydrology, and modern technology and methodology of geo-samples analysis.
The Cabinet granted approval, in principle, for initiation of negotiations on the draft agreement on scientific and technological cooperation between the Government of Pakistan and the Government of the United Mexican States.
The main objective of the agreement is to initiate, encourage and promote science and technology cooperation in the areas of bio-technology, engineering sciences, material sciences and renewable energy resources.
The Cabinet accorded approval to sign MoU on Australia-Pakistan Development Partnership to broaden area of development assistance in the areas of health, education, technical training, rural development, agriculture, livestock, economic reform programme, good governance, and reconstruction and rehabilitation of areas affected by terrorism. The signing of MoU will lead to Australia’s enhanced assistance during the period 2010-13 which would be in the range of Aus $ 211.2 million.
The Cabinet also accorded its approval to start negotiations for signing of MoU with Republic of Tunisia aiming at close co-operation between Trade Development Authority of Pakistan and Export Promotion Centre of Tunisia. The signing of MoU will lead to improvement and building existing level of co-operation between the two countries in the areas of trade relations, sharing of information, organize training programmes as well as ensure participation in the fairs and exhibitions arranged in the two countries.
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