State enterprises lose Rs500 billion annually: Caretaker minister

Islamabad: Caretaker Finance Minister Shamshad Akhtar said the losses of government-owned enterprises have reached 500 billion rupees.

Talking to the media in Islamabad, Caretaker Finance Minister Shamshad Akhtar stated: “Steps are being taken to revive the country's economy for which profitable companies are being encouraged”.

Shamshad Akhtar added that earlier in 2020 the losses of SOEs were 500 billion rupees. The Ministry of Finance will help to recover the financial losses, steps will be taken to recover the financial losses.

She also said: “Government institutions have failed to provide services, 10 profitable and loss-making institutions have been listed. The government is bearing the losses of state-owned enterprises”.

The minister continued to say that board members will be given security of tenure. The appointment of the CEO is very important and will be reviewed. There will be no interference in government-owned enterprises and will be reorganized.

Caretaker Finance Minister further stated that government-owned institutions were reorganized at different times. Incompetent persons were appointed in the board of directors of government institutions.

Shamshad Akhtar also added that no ministry will issue any directive to the government departments. A cabinet committee has been established for the first time for government companies which will work to improve the performance of government companies.

Some government companies have profits of 350 billion rupees, of which only oil and gas companies have profits of 185 billion rupees. The main reason for the losses of government companies are appointments without merit, she added.