FP Staff Report
ISLAMABAD: 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 Yousuf 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 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 in his opening remarks directed the Cabinet Division to submit a progress report on the implementation status of Cabinet decisions in the next Cabinet meeting. He also directed that recommendations of the 19 Sub Committees of the Cabinet on different subjects should also be submitted in the next Cabinet meeting. Such a monitoring of the Cabinet's decisions has indeed been effected 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 purpose of the proposed MoU is aimed at sharing benefit from the Korean experience in the field of environmental training and education. It will also help foster capacity building, share the experiences in the development of environmental technology and industry and sustainable development for creating clean environment for better quality of life.