CCoSOEs Addresses Audit Delays, Approves Key Appointments

The Cabinet Committee on State-Owned Enterprises (CCoSOEs) has voiced its apprehension regarding the prolonged delays in the completion of financial audits by several SOEs, according to a statement released by the Finance Division on Tuesday.

During the committee meeting, presided over by Finance Division head Muhammad Aurangzeb, authorities were directed to commence their audit procedures immediately.

The Securities and Exchange Commission of Pakistan (SECP) was also tasked with reviewing these instances and presenting its conclusions and proposals to the CCoSOEs subsequently, the statement noted.

Pakistan has been actively pursuing the privatization of its SOEs for many years. The goal is to improve efficiency, reduce fiscal burden, attract investment, and stimulate economic growth. However, the government failed to privatise any entity in the fiscal year 2024-25.

Earlier in the month, the government of Pakistan announced its approval of four potential bidders for a stake in the financially challenged Pakistan International Airlines (PIA).

The nation aims to divest a 51-100% share in the struggling national carrier to generate funds and overhaul state-owned enterprises that are draining resources, as part of a $7 billion program with the International Monetary Fund (IMF). This privatization would mark the country’s first significant move in nearly two decades.

Among the interested parties is a consortium comprising prominent industrial entities such as Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures.

It is worth noting that the government’s initial attempt to privatize PIA last year was unsuccessful due to receiving only one offer, which was significantly below the asking price of over $300 million.

Additionally, during Tuesday’s session, the committee assessed and sanctioned a proposition from the Ministry of Information and Broadcasting concerning the selection of independent directors for the Boards of Pakistan Television Corporation (PTVC) and Pakistan Broadcasting Corporation (PBC).

“Following a rigorous shortlisting process, six independent directors were approved for each of the two Boards. For the PTVC Board, the approved names included Ishtiaq Baig, Yasir S. Qureshi, Dr. Asghar Nadeem Syed, Tasneem Rehman, Leyla Zuberi, and Khalid Mehmood Khan. For the PBC Board, the selected directors included Sadia Khan, Jehangir Khan, Sadiqa Sultan, Nasira Azim Khan, Khan Bibi, and Nadeem Haider Kiyani.”

The committee also considered a proposal from the Ministry of Industries and Production regarding the formation of the Board of Directors for Agro Food Processing Facilities.

“The committee approved the nomination of four independent directors: Hasnain Nawaz Khan, Shahid Mehmood Sahu, Ahsan Mustafa Bajwa, and Ghulam Jaffar Junejo. In addition, three ex-officio members will serve on the Board. The Committee further endorsed the proposal to appoint Hasnain Nawaz Khan as the Chairman of the Board.”

The Procurement Policy of the Pakistan National Shipping Corporation (PNSC), presented by the Ministry of Maritime Affairs, was reviewed and endorsed by the cabinet body, with suggestions for further improvements.

“It was appreciated that the PNSC is the first State-owned Enterprise to formulate and adopt a comprehensive procurement policy tailored to its operational needs.”

The committee also ratified a summary from the Ministry of National Food Security and Research, accepting the resignation of the Vice President of the Pakistan Central Cotton Committee (PCCC), effective March 25, 2025, due to personal reasons. The Federal Cabinet had appointed the official to the position in May 2024.

Another item approved by the committee pertained to the appointment of directors and members to the Board of the National Disaster Risk Management Fund (NDRMF), as proposed by the Ministry of Planning, Development, and Special Initiatives.

“The committee further considered and approved a proposal from the Strategic Plans Division for the exclusion of SPD entities from the consolidated reporting requirements of the Ministry of Finance and granted them complete exemption from the State-Owned Enterprises Act and Policy of 2023, in recognition of the sensitive and security-related nature of their operations,” the Finance Division stated.