Islamabad: The International Monetary Fund (IMF) has raised objections to updating the assessment of state-owned enterprises (SOEs) and delaying the start of the report by the end of December Bai Arrangement (SBA) Program.
When the author contacted Qamar Abbasi, a spokesman for the Ministry of Finance, to ask about the release of the SOEs ’ report in accordance with the IMF agreement, He replied that it would be completed by the end of December 2023.
The IMF set a structural standard under the $ 3 billion SBA program, while it was agreed that its first periodic report on the performance of Central Monitoring Unit (CMU) SOEs Will issue, using the latest available data, to the federal government by the end of December.
The Ministry of Finance informed the IMF that the CMU was created in September 2022 to improve the monitoring and oversight of SOEs ’ and to provide better analysis of the overall level of SOEs had gone.
The full operationalization of the CMU will be completed with the publication of its first periodic report on the performance of the institutions in accordance with Section 31 (3) New SOEs law using the most available data.
IMF staff called for the implementation of the new SOE law in early 2023, and, with the support of the ADB, called for rapid progress: (i) Develop a new property policy; (ii) amend the Act dedicated to several SOEs (Finally-November 2023 SB, 12)؛ (iii) advancing full operationalization of CMU delays within MoF (SB at the end of November 2023, 12); (iv) Gradual reduction of state image (March 2021 based on SOE triad and distribution of two LNG based power plants, a development financial institution, including, And a small public bank); And (v) continue with regular and timely audits of key SOEs.
He called for improving governance؛ (i) Enabling the recently passed SOE law into a policy that clarifies ownership arrangements and the division of roles within federal governments; And (ii) amending the Act of four selected SOEs to fully implement the new SOE law on these SOEs by the end of November.
A spokesman for the Ministry of Finance said: “We SOEs’ are committed to improving governance, transparency, and efficiency, as well as limiting their financial risks. In addition to the operationalization of the CMU within the MOF (7) which will improve the oversight of the government’s SOE، Specific measures include our new SOE law enacted in December 2022 and, among other things: (i) ensures that SOE operations are based on trade, including clarifying what a commercial SOE is؛ And (ii) strengthens oversight and ownership arrangements. We are now working with ADB support to finalize further regulatory reforms, including (end of November 2023 SB): (i) Enabling the recently passed SOE law into a policy that clarifies ownership arrangements and the division of roles within the federal government; And (ii) amending the Act of four selected SOEs to legally apply the new SOEs to these SOEs.
“We are currently targeting the National Highway Authority, Pakistan Post, Pakistan National Shipping Corporation, and Pakistan Broadcasting Corporation.
“ The SOEs are constantly audited by external auditors and their audit reports are usually published، While the Auditor General conducts ‘compliance with audit ’ of SOEs accounts. In addition, we have asked our Auditor General to consider several SOEs (ie SSGCL, HESCO، And do special audits of PESCO) because of their size and importance in their fields. Relevant line ministries are currently in the process of clarifying the scope and terms of reference in consultation with all relevant stakeholders and approving the necessary approvals to initiate the audit Planning to secure end of FY23, ” spokesman added.
