ISLAMABAD: The cabinet has called for a thorough review of state-owned enterprises (SOEs) to determine which should remain under government control by categorizing them as “essential” or “strategic.” This initiative is part of a broader effort to assess the necessity of retaining, privatizing, or shutting down certain SOEs.
According to sources, the Cabinet Division has begun categorizing these enterprises. However, during a recent meeting, the cabinet stressed the importance of a careful evaluation and clear criteria for determining which SOEs should be classified as “essential” or “strategic.” The cabinet also emphasized the need to decide which enterprises should stay with the government, be privatized, or be wound up entirely.
Some cabinet members suggested that further discussions are needed and recommended holding a meeting chaired by the prime minister to finalize the decisions.
The Cabinet Division provided the cabinet with a briefing on the categorization process, revealing that out of a total of 84 SOEs, 61 had been reviewed by the Cabinet Committee on SOEs. Of these, 15 were classified as essential, 5 as strategic, and 18 were earmarked for privatization.
The cabinet has directed the relevant ministries and divisions to continue refining the categorization and to make decisions regarding the future of these SOEs. The government is also working on rightsizing ministries and divisions, a move expected to result in downsizing state-owned firms. As part of this plan, the government has decided to wind up certain SOEs.
In an earlier presentation to the cabinet on SOE performance, it was noted that the Cabinet Committee on SOEs had held several meetings to consider proposals from various administrative divisions regarding the retention of their SOEs by declaring them “strategic” or “essential.”
Based on the progress reported, the Finance Division identified a total of 84 SOEs, with 55 reviewed by the Cabinet Committee. Thirteen SOEs were classified as essential, five as strategic, 15 were slated for privatization, and 22 remained under consideration by the Cabinet Committee.
The cabinet was informed that a comprehensive program is being developed, and the SOEs that have undergone review by the cabinet committee are in the pipeline for further action.
The government’s rightsizing initiative began with the Ministry of Information Technology and Telecommunication, where plans are underway to shut down and privatize certain institutions. The Institutional Reforms Committee has recommended closing the Telecom Foundation and privatizing its subsidiaries. Additionally, the National Information Technology Board (NITB) is set to undergo significant restructuring to become a leaner organization, partnering with private service providers and adopting an outsourced model.
