Govt takes multiple steps to reduce losses in SOEs, says Solangi

F.P. Report

ISLAMABAD: Caretaker Federal Minister for Information, Broadcasting and Parliamentary Affairs Murtzaz Solangi informed the Senate on Monday that the government had taken multiple steps to reduce losses in State-Owned Enterprises (SOEs).

Winding up the debate on a motion moved by Senator Mushtaq Ahmed regarding the performance of SOEs, which according to a World Bank report is worse in Asia, he said further reforms, including the restructuring of the loss-making institutions would be decided by the newly elected government and the Parliament.

The minister said “There is consensus on the need to end losses in State-Owned Enterprises (SOEs); however, there are differing opinions. Some believe that privatization is the sole solution, while others argue for professional management to enhance their efficiency.” He said “The final decision on this matter will be made by the elected government and the parliament,” adding that more than 200 institutions were currently experiencing losses, including those in the power, communication sectors, and Pakistan Railways.

According to a report from the Ministry of Finance, he said, these institutions had incurred losses amounting to Rs730 billion. However, profitable institutions earned an overall income of Rs570 billion, he added. He informed the House that the net loss was approximately Rs160 billion, with sectors such as power, Pakistan International Airlines (PIA), National Highway Authority (NHA), Railways and Steel Mills contributing to these losses.

He highlighted that losses incurred by the NHA alone were close to Rs170 billion. A policy regarding SOEs was approved in September 2023 to assess their performance, with the Ministry of Finance establishing a Central Monitoring Unit for this purpose. Furthermore, amendments have been made to laws for reforms in various institutions, including NHA, the Minister informed the Senate.

Senator Mushtaq Ahmed claimed that 50 percent of Pakistanis were living below the poverty line and facing high inflation. Senator Sania Nishtar asked for the privatization of the loss-making SOEs to avoid burden on the national exchequer.

Caretaker Minister for Information, Broadcasting and Parliamentary Affairs Murtaza Solangi Monday informed the Senate that around 71,000 Out-Of-School Children (OOSC), out of 81,000, had been brought back in educational institutes of the federal capital, with 86 per cent enrollment.

Responding to a motion regarding the increasing number of out-of-school children and its impact on the country’s future, he said, that last year during an inter-ministerial conference, which is one of the biggest forums, provinces had been asked to play their active role in increasing enrollment of the OOSC in educational institutes.

According to Pakistan Education Statistics, working under the Ministry of Education, the data about providing education to schoolchildren by provinces is compiled annually, he added. After every five years, he said, the survey was conducted regarding out-of-school children and the last survey was carried out in 2021-22.

In the Public Sector Development Programme (PSDP), he said, Rs700 million had been allocated for enrollment of out-of-school children in the federal capital, while Rs 25 billion for the rest of the country. Caretaker Federal Minister for Information, Broadcasting, and Parliamentary Affairs Murtzaz Solangi informed the Senate on Monday that Higher Education Commission (HEC) had neither decided nor given any suggestion to the universities to eliminate any particular course of study, including the Pakistan Studies from their degree programmes.

Responding to a motion moved by Mushtaq Ahmed regarding the abolition of the subject of Pakistan Affairs by the Higher Education Commission (HEC) from the syllabus at the graduation level, he said, “As per the concerned ministry and HEC, no decision or proposal has been issued to abolish the subject of Pakistan Affairs or any other course from the syllabus at the graduation level.” He further elaborated that all undergraduate policies recommended by the HEC encompassed the minimum standards required for such programmes, adding universities were operating autonomously within the framework of their respective laws.

He said a course on Pakistan ideology and the constitution had been introduced for all undergraduate degree programmes. The minister said this course was a blend of Pakistan Studies and the constitution. He said the HEC was also holding consultations with the concerned stakeholders to prepare a two-credit-hour compulsory course for all undergraduate degree programmes. Senators Walid Iqbal, Prof. Dr. Mehr Taj Roghani, Fawzia Arshad, Sania Nishtar, Syed Waqar Mehdi and Ali Zafar collectively called for the immediate reinstatement of the Pakistan Studies subject. They proposed incorporating the recently introduced subject on the Ideology and Constitution of Pakistan as an additional chapter within the curriculum.