Govt to promote corporate governance in PSEs: Hafeez

ISLAMABAD: Federal Minister for Finance, Dr. Abdul Hafeez Shaikh here on Thursday said that the government was determined to enhancing the efficiency of public sector enterprises (PSEs) by restructuring their boards and appointing professional heads of these organization mostly from private sector in order to make the entities profitable institutions.

He stated this while addressing a round-table conference on “Code of corporate governance for public sector enterprises”, which was jointly organized by the Securities and Exchange Commission of Pakistan (SECP), Pakistan Institute of Corporate Governance and Economic Reforms Unit of the Ministry of Finance.

Dr. Hafeez said that the launch of the code of corporate governance for public sector enterprises will help to develop the capacity of public sector organization and to bring them as par with international standards and make them competitive.

“In fact it was a good effort for restoring the confidence of international institutions on our organizations by adopting the best practices to restructure these enterprises”, he remarked.

He said that government was inducting the well reputed professionals in the board of public sector organizations in different phases adding that reforms was introduced in power sector.

The minister said that the board of power producing and distributing companies were restructured and best professionals were haired involving the members of chambers of commerce and Pakistan Business Council.

Dr. Shaikh informed that as the continuity of the process the new Managing Director of Pakistan Airline was appointed and new MD of Pakistan Steel Mills would be appointed within next couple of days.

“We have also send them the message that the public money was not so cheap and prove their worth by enhancing the efficiencies of these entities”, he added.

The minister further said that involvement of private sector in economic development was vital and it was also striving to initiate the mega projects with public-private partnership bases for infrastructure development and power production from Thar-Col.

Speaking at the conference, Director General, Economic Reforms Unit of the Ministry of Finance, Khakan Najeeb said that government has successfully introduced power sector reforms during last two years.

He further said that restructure plan for the boards of PIA and PSM was also developed to turn these organizations into profitable entities for the country.

Chairman Task Force of Corporate governance, Asad Ali Shah on the occasion highlighted the steps taken by the government for promotion of the corporate governance in the country.

He said that Rs.300 billion to Rs.400 billion per anum losses in different PSEs including Pakistan Steel Mills, Pakistan Railways and PIA.

He said that by introducing good corporate governance and appointing independent, efficient and honest Chief Executive Officers (CEOs) and Board of Directors by applying fit and proper criteria for the boards and appointments, the effeciency of the entities can be improved.

Chairman SECP,Muhammad Ali speaking on the occasion said that the Commission has drafted Public Sector Companies (Corporate governance ) Regulations ,2012 and to be present to the government for its approval after getting inputs from various stakeholders for the development of PSEs in the country.