TCP, SMEDA, PNSC declared essential state entities

ISLAMABAD: The government has decided to designate the Trading Corporation of Pakistan (TCP), the Small and Medium Enterprises Development Authority (SMEDA), and the Pakistan National Shipping Corporation (PNSC) as essential state-owned enterprises (SOEs).

Federal Minister for Finance and Revenue Muhammad Aurangzeb presided over the meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division on Monday.

The meeting focused on various critical issues related to the management and strategic direction of key SOEs. The committee discussed a summary from the Ministry of Commerce regarding the plan to reinvigorate the Trading Corporation of Pakistan (TCP).

It was decided that, due to the unique nature of the entity, the TCP would be categorised as an essential SOE under the SOEs Policy, 2023. Additionally, it was decided that a detailed financial plan for the TCP should be prepared, addressing the settlement of its liabilities.

A summary from the Finance Division regarding the appointment of two independent directors to the Board of the Export-Import (EXIM) Bank of Pakistan was considered and approved. The committee endorsed the appointments of Ms. Ayesha Aziz and Mr. Imran Maqbool as Independent Directors on EXIM Bank’s Board, under Section 17 of the Export-Import Bank of Pakistan Act, 2022.

The committee also discussed a summary from the Ministry of Industries and Production regarding the categorisation of SMEDA as an Essential SOE. Considering SMEDA’s importance in facilitating SMEs, it was categorised as an essential SOE under Paragraph 11 of the SOEs Policy.

Furthermore, the committee deliberated on a summary from the Ministry of Maritime Affairs regarding the appointment of independent directors to the Pakistan National Shipping Corporation (PNSC) and recommended the appointment of the proposed independent directors to the cabinet.

The committee also approved a proposal from the Ministry of Maritime Affairs to designate PNSC as a strategic SOE under Para-9(a) of Chapter 3 of the SOEs Ownership and Management Policy, 2023. Moreover, it was decided that the option of increasing private shareholding in PNSC should also be explored.

The reconstitution of the Board of Trustees of the Karachi Port Trust (KPT) for the term 2024-2026 was also discussed, based on a summary from the Ministry of Maritime Affairs. The committee approved the proposal and recommended it for cabinet approval.