Next govt will have to deal with inefficient state-run firms
Launches Corporate Governance Rules 2013 for public sector companies.
Mandviwalla clarified that only Rs46 million had been given to the national flag carrier to help it buy new aircraft. PHOTO: FILE
ISLAMABAD:
Federal Finance Minister Saleem H Mandviwalla has said a comprehensive roadmap would be left for the incoming government to help it get rid of circular debt and improve performance of public sector companies.
He was speaking at the signing and launching ceremony of Corporate Governance Rules 2013 for public sector companies here on Friday.
“We will leave a roadmap for the next government to tackle circular debt and make state-owned enterprises efficient,” Mandviwalla said, terming the inter-corporate debt and revival of state enterprises two major challenges.
Dismissing reports that the government had provided Rs100 billion to Pakistan International Airlines (PIA), he clarified that only Rs46 million had been given to the national flag carrier to help it buy new aircraft.
He expressed the hope that the launch of Corporate Governance Rules 2013 for public sector companies would improve the performance of state enterprises and benefit the country.
He also credited his predecessor Dr Abdul Hafeez Shaikh with managing the country’s economic and financial affairs well, despite multiple challenges.
On the occasion, Securities and Exchange Commission of Pakistan Chairman Muhammad Ali gave a comprehensive presentation on the Corporate Governance Rules 2013, with the hope that the rules would play a key role in reviving state-run companies.
He said the rules had been formulated in view of distinct governance challenges faced by public sector companies. Eight major state-owned enterprises are receiving more than Rs300 billion annually from the federal government in support and bailout packages, causing a drain on fiscal resources which could otherwise have been used for improving public services.
The rules pertain to overall objectives of state ownership, avoiding day-to-day interference in management of public sector companies, granting operational autonomy to boards of directors, centralising ownership through a coordinating entity and exercising ownership rights according to legal structure of each company, including respect for rights and interests of minority shareholders in case of partially owned public sector companies.
Representatives of the World Bank and the Asian Development Bank, who were also present at the ceremony, were of the view that state companies were eating up a big chunk of the budget but did not provide proper services. However, they expressed the hope that the new corporate governance rules would pave the way
for improving the overall situation.
Published in The Express Tribune, March 9th, 2013.
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Federal Finance Minister Saleem H Mandviwalla has said a comprehensive roadmap would be left for the incoming government to help it get rid of circular debt and improve performance of public sector companies.
He was speaking at the signing and launching ceremony of Corporate Governance Rules 2013 for public sector companies here on Friday.
“We will leave a roadmap for the next government to tackle circular debt and make state-owned enterprises efficient,” Mandviwalla said, terming the inter-corporate debt and revival of state enterprises two major challenges.
Dismissing reports that the government had provided Rs100 billion to Pakistan International Airlines (PIA), he clarified that only Rs46 million had been given to the national flag carrier to help it buy new aircraft.
He expressed the hope that the launch of Corporate Governance Rules 2013 for public sector companies would improve the performance of state enterprises and benefit the country.
He also credited his predecessor Dr Abdul Hafeez Shaikh with managing the country’s economic and financial affairs well, despite multiple challenges.
On the occasion, Securities and Exchange Commission of Pakistan Chairman Muhammad Ali gave a comprehensive presentation on the Corporate Governance Rules 2013, with the hope that the rules would play a key role in reviving state-run companies.
He said the rules had been formulated in view of distinct governance challenges faced by public sector companies. Eight major state-owned enterprises are receiving more than Rs300 billion annually from the federal government in support and bailout packages, causing a drain on fiscal resources which could otherwise have been used for improving public services.
The rules pertain to overall objectives of state ownership, avoiding day-to-day interference in management of public sector companies, granting operational autonomy to boards of directors, centralising ownership through a coordinating entity and exercising ownership rights according to legal structure of each company, including respect for rights and interests of minority shareholders in case of partially owned public sector companies.
Representatives of the World Bank and the Asian Development Bank, who were also present at the ceremony, were of the view that state companies were eating up a big chunk of the budget but did not provide proper services. However, they expressed the hope that the new corporate governance rules would pave the way
for improving the overall situation.
Published in The Express Tribune, March 9th, 2013.
Like Business on Facebook to stay informed and join in the conversation.