Key Takeaways
- The Cabinet Committee on State-Owned Enterprises (CCoSOEs) met under the chairmanship of Senator Muhammad Aurangzeb.
- Committee emphasized good governance principles and limited representation from sponsoring Ministries/Divisions on Boards.
- SMEDA was excluded from the list of State-Owned Enterprises due to its statutory and non-commercial nature.
The Cabinet Committee on State-Owned Enterprises (CCoSOEs) convened today at the Finance Division, chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The meeting focused on several key issues related to Pakistan's state-owned enterprises.
Two summaries submitted by the Petroleum Division were discussed: one concerning the constitution of the Boards of Directors of Pakistan Petroleum Limited (PPL) and Saindak Metals Limited (SML).
The Committee stressed that the composition of these boards must adhere to principles of good governance, as outlined in the State-Owned Enterprises (Ownership and Management) Act and Policy. Specifically, it was emphasized that representation from sponsoring Ministries/Divisions should be limited to one ex officio Director on each Board.
Another summary from the Petroleum Division sought an exemption for certain energy sector state-owned enterprises from International Financial Reporting Standards (IFRS-14 and IFRS-9). However, this proposal was deferred. The Committee instructed the Petroleum Division to collaborate with the Finance Division and the Law and Justice Division to refine their proposal before resubmitting it.
The Maritime Affairs Division presented a summary regarding the appointment of an Independent Director on the Board of Pakistan National Shipping Corporation (PNSC) against a vacant position, which was approved by the Committee.
Additionally, the Ministry of Industries and Production submitted a summary categorizing the Small and Medium Enterprises Development Authority (SMEDA). The Committee agreed to exclude SMEDA from the list of State-Owned Enterprises due to its statutory and non-commercial nature.
The meeting also included participation from the Federal Minister for Maritime Affairs, Mr. Muhammad Junaid Anwar Chaudhry, who attended virtually alongside federal secretaries and senior officials from relevant ministries, divisions, and regulatory authorities.
