ISLAMABAD: The Cabinet Committee on State-Owned Enterprises (CCoSOEs) recommended for reviewing and streamlining the appointment process for board positions in state-owned enterprises to avoid administrative delays and ensure continuity.
The committee meeting was held on Wednesday under the chairmanship of Federal Minister for Finance and Revenue Muhammad Aurangzeb, who participated in the proceedings online. The committee considered and approved a proposal from the Ministry of Commerce for filling vacant positions on the Board of Trading Corporation of Pakistan (TCP).
The committee endorsed the nomination of Aasim Aziz Siddiqi as Chairman of the Board of TCP, Ayesha Aziz as Independent Director, and Shoaib Mir Memon as Chairman of the Board of Pakistan Reinsurance Company Limited (PRCL).
Finance Division in its latest bi-annual report on federal SOEs fiscal year 2025 (6 months) (July 2024 to December 2024) noted that despite total assets increased to Rs429 billion, of which, Rs225 billion is government receivables, TCP’s equity base remains weak at Rs111.5 billion.
The sharp increase in surplus on revaluation of assets, now at Rs86.3 billion, provides temporary balance sheet strength but is non-cash and non-operational. Such a capital structure suggests that real equity available for leveraging is much lower, and any adverse movement in receivables or disputes could quickly erode operational capacity.
Additionally, the pending litigation and un-provided tax contingencies are worth Rs12.1 billion further aggravate risks, requiring business plan recalibration toward legal risk mitigation. The receivables situation concerns the business plan. Rs8.49 billion in trade debts from government entities remain unconfirmed for over six years, while Rs17.07 billion (including mark-up) is stuck in disputes with sugar mills, now with NAB.
This underlines structural weaknesses in TCP’s receivables management, reflecting both poor enforcement of contracts and insufficient financial oversight. A robust receivables collection strategy must be part of the business plan, pushing for strict government backing for timely recoveries and a phased write-off or provisioning strategy, it added.
The committee further advised the relevant ministries, including the Finance Division, to review and streamline the appointment process for board positions in state-owned enterprises. It recommended initiating the process well in advance of the incumbents’ retirement to avoid administrative delays and ensure continuity.
The committee also approved the appointment of three ex-officio members to the Board of Directors of Postal Life Insurance Company Ltd, as proposed by the Ministry of Communications.
The ministry was directed to submit a summary for the nomination of the chairman of the board from among the four independent directors already serving, in order to make the Board functional and enable decisive progress on the entity’s restructuring and potential winding-up, as it remains on the privatisation list.
Additionally, the cabinet committee reviewed a proposal from the Ministry of Industries and Production regarding the reconstitution of the Board of Directors of the Small and Medium Enterprises Development Authority (SMEDA).
The Committee approved a panel of six private sector members for appointment as independent directors, including Saif Ali Rastgar (Punjab), Mashood Khan (Sindh), Osman Saifullah Khan (Khyber Pakhtunkhwa), Israr Khan Kakar (Balochistan), Aasia Saail Khan (representing women), and Dr Syed Zahoor Hassan (development sector).
The meeting concluded with a briefing by the Ministry of Science and Technology on the restructuring and renaming of the Scientific and Technological Development Corporation of Pakistan as the Indigenous Research and Development Agency (IRADA), in line with a prior decision of the committee.
The chair appreciated the reform initiative, noting that the objective of the restructuring was to enhance the organisation’s effectiveness, and expressed hope that IRADA would fulfil its envisioned mandate and contribute meaningfully to the national innovation ecosystem.
The meeting was attended by Federal Minister for Housing and Works Mian Riaz Hussain Pirzada, Federal Minister for Commerce Jam Kamal Khan, Chairman SECP, federal secretaries, and senior officials from relevant ministries and government departments.
Copyright Business Recorder, 2025
