Pakistan's SOEs Face Governance Test as IMF Deadline Approaches
Pakistan's Ministry of Finance has directed all state-owned enterprises (SOEs) to implement standardized regulations, including comprehensive guidelines for business plans, board appointments, and financial audits. Issued by the Central Monitoring Unit (CMU) on October 31, this mandate requires SOEs to align with the SOEs (Governance and Operations) Act 2023 and the SOEs Ownership and Management Policy 2023.
Pakistan's Ministry of Finance has directed all state-owned enterprises (SOEs) to implement standardized regulations, including comprehensive guidelines for business plans, board appointments, and financial audits. Issued by the Central Monitoring Unit (CMU) on October 31, this mandate requires SOEs to align with the SOEs (Governance and Operations) Act 2023 and the SOEs Ownership and Management Policy 2023. This action aims to reduce fiscal risks and meet the International Monetary Fund's (IMF) conditions by improving transparency and accountability.
Key Guidelines:
- Business Plan and SCI Standards: Federal SOEs must adhere to guidelines focusing on strategic objectives, environmental assessments, and effective monitoring.
- Public Sector Obligations (PSOs) Costing: SOEs are instructed to estimate financial needs with various costing methods to ensure precise budget allocation and financial planning.
These measures signify Pakistan's commitment to enhancing SOE governance, a step vital for economic stability and continued IMF support.
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