Stop funding loss-making SoEs: WB

ISLAMABAD: Reducing losses and improving the financial viability of State-owned Enterprises (SoEs), a new World Bank report has suggested to the government to reduce or eliminate the longstanding practice of covering SoEs operating losses with transfers from the budget.

The conditions for the provision of such subsidies should be defined in the subsidiary legislation under the SoE Law.

The enforcement of SoE loan agreements should be strengthened.

Outstanding government domestic loans to SoEs stood at 3.5pc of GDP in FY21, of which nearly a third was overdue.

Loan repayment should be added as a key performance indicator for the board of directors.