Pakistan’s State-Owned Enterprises Face Increased Oversight Amidst Significant Financial Losses
Key Takeaways:
i) Prime Minister Shehbaz Sharif has instructed federal ministries and divisions to implement a strict monitoring system for State-Owned Enterprises (SOEs).
ii) In fiscal year 2024, Pakistan’s SOEs collectively incurred losses of Rs 851 billion.
iii) The total accumulated losses from SOEs since 2014 have reached Rs 5.9 trillion.
iv) The Prime Minister has directed that ministers-in-charge ensure the formulation of Key Performance Indicators (KPIs) and monitoring frameworks for each subordinate organization and SOE under their jurisdiction.
Islamabad, Pakistan – Prime Minister Shehbaz Sharif, alarmed by persistent financial and governance issues within Pakistan’s State-Owned Enterprises (SOEs), has mandated all federal ministries and divisions to establish a stringent monitoring system. This directive aims to oversee the performance of SOEs and subordinate bodies under their control, addressing significant losses and governance failures.
According to a report by the Ministry of Finance, Pakistani SOEs incurred losses totaling Rs 851 billion in the fiscal year 2024. While this represents a 14.03% decrease compared to the previous year, the cumulative losses since 2014 have reached a staggering Rs 5.9 trillion.
The Prime Minister’s Advisor, Dr. Tauqeer Shah, conveyed the Prime Minister’s concerns regarding insufficient oversight by federal ministries. This lack of oversight has led to governance failures, including violations of procurement rules, corruption, operational inefficiencies, and declining service delivery.
In response, the Prime Minister has directed ministers and secretaries to exercise robust and continuous oversight over all organizations under their administrative control. This includes SOEs, autonomous bodies, and attached departments. Furthermore, a system of pre- and post-briefings for Board meetings will be instituted to ensure government representatives are well-informed and provide timely reporting.
To ensure structured evaluation and accountability, the Prime Minister has also instructed ministers to formulate Key Performance Indicators (KPIs) and monitoring frameworks for each subordinate organization and SOE under their jurisdiction.
