Cabinet seeks AGP’s report, forensic audit of loss making SOEs

ISLAMABAD: The government while taking notice of loss making state owned enterprises (SOEs) has directed the finance division to submit a forensic audit and Auditor General of Pakistan (AGP) report of 10 such  enterprises.

As per details, the finance division briefs the cabinet on an annual report on SOEs being published since FY14 titled ‘Federal Footprint: Annual SOEs Report’. However, reports for FY18 and FY19 had been published after some delay whereas the it was submitted that the report for FY20 is still being finalised and cannot be presented on time either.

“These reports primarily present financial performance of SOEs portfolio during a year under review and also cover other important aspects such as stock of SOEs, assets and liabilities as well as government support provided to SOEs in the form of equity injection, guarantees and cash development loans,” said sources.

They added that these reports assist the government and international partners in analysing and understanding the nature and performance of commercial activities of government owned entities.

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Sources said that financial performance of 85 commercial SOEs excluding the National Highway Authority (NHA) during the first two years (FY17 and FY18) of the present government had disclosed a net loss of Rs286 billion.

However, financial performance of SOEs during FY18 and FY19 had shown improvements as they earned Rs31 billion worth profit.

The finance division has informed the Cabinet that the government’s broad based reform process including, timely completion of SOEs’ Board of Directors (BoDs) and appointments at managerial positions together with fiscal discipline had helped improvements in the performance.

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