Credit By: Dunya News
CMU Staff Hiring Process in Progress for Effective SOE Oversight
Sources within the Finance Ministry have confirmed that the ongoing process of staffing the CMU (Central Management Unit) aligns with the requirements outlined in the IMF program. However, the hiring has yet to reach completion.
While acknowledging the ongoing discussions with stakeholders regarding the draft SOE policy, officials expressed optimism that these dialogues would soon conclude. Following the established timeline, they expect the first periodic report on State-Owned Enterprises (SOEs) to be prepared and ready by the end of November 2023.
Drafting SOE Policy: Incorporating Stakeholder Input
In a proactive move, the Finance Ministry has formulated a draft SOE policy to mitigate the associated fiscal risks of SOEs. The Ministry has sought insights from various stakeholders and the general public, aiming to incorporate valuable perspectives into the policy.
The draft policy underlines that the federal government will retain or own only those SOEs classified as strategic through the SOE Triage process. Strategic SOEs, marked by their vital strategic, security, or societal significance, will be retained under government ownership.
As the draft policy highlights, the CMU’s responsibilities encompass providing financial and operational performance analyses and recommendations to the Federal Government regarding SOEs’ operations, performance, and governance. This includes evaluating SOEs’ adherence to primary objectives, business goals, financial and non-financial performance metrics, and managing risks associated with the sector.
Database of Directors and Performance Evaluation
The CMU is set to establish a comprehensive database of SOE board directors based on government-approved board appointments. After each board member’s term concludes, the relevant Ministry or division will submit a performance evaluation. This record will guide future appointments and ensure accountability.
Centralized Electronic Database for Enhanced Oversight
The Ministry of Finance, through the CMU, will establish a centralized electronic database housing comprehensive financial and non-financial performance data for each SOE. This move is aimed at bolstering transparency and enhancing oversight.
Professional Expertise at CMU
The CMU will onboard professionals with expertise in corporate finance, corporate law, strategic planning, and management to further strengthen its capabilities. This specialized team will be crucial in effectively implementing the new SOE policy.
In conclusion, the Finance Ministry’s efforts to streamline the management of State-Owned Enterprises are underway, with a comprehensive policy framework and the establishment of the CMU at the forefront. These initiatives, aligned with the IMF program, are poised to enhance transparency, efficiency, and governance within the SOE sector.