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Thursday February 22, 2024

Finance Division to have Central Monitoring Unit

December 01, 2023

ISLAMABAD: The government has placed the State Owned Enterprises (SOEs) Ownership and Management Policy 2023 under which a Central Monitoring Unit (CMU) would be set up in the Finance Division whose primary responsibility would be to perform functions as provided in Section 31 of the SOEs Act passed earlier by the parliament.

The federal government shall: a) exercise all the powers and rights that shareholders have in relation to the SOEs; b) ensure the establishment of a standing committee of the Federal Cabinet - Cabinet Committee on SOEs (CCoSOEs) - whose responsibility shall be to enforce and monitor the Act, this policy and other ancillary matters; ensure the establishment of a CMU in the Finance Division, whose primary responsibility shall be to perform functions as provided in Section 31 of the Act.

Caretaker Finance Minister Shamshad Akhtar chairs a meeting in Islamabad on November 24, 2023. — X/@Financegovpk
Caretaker Finance Minister Shamshad Akhtar chairs a meeting in Islamabad on November 24, 2023. — X/@Financegovpk

The CMU will establish a central electronic database of information on the financial and non-financial performance of each SOE.

The Finance Division will ensure deputing/engaging qualified and experienced professional management and staff in the CMU.

The database, developed by the CMU, will generate bi-annual reports and shall submit the same for the consideration of CCoSOEs. The database will contain financial and non-financial performance information for each SOE.

The CMU will analyze SOEs business plans and present their analyses and recommendations to the CCoSOEs.

The CMU may also provide input on the draft SCI, business plan and reports by the SOEs if requested by the line Ministry/Division. However, such input provided to the line ministries/divisions will not be binding.

The CMU will develop a monitoring framework for the SOEs against the financial and non-financial benchmarks agreed in the business plans. The annual consolidated monitoring report of SOEs will be published on the website of the Finance Division at the beginning of the second quarter of each succeeding fiscal or calendar year (whichever is more appropriate).