Islamabad: The Private Power and Infrastructure Board (PPIB) is seeking assistance from its Board to declare its status as an essential State-Owned Enterprise (SOE). This move aims to safeguard against privatization or dissolution, as per sources close to the Managing Director of PPIB, as reported by Business Recorder.
The enactment of the State-Owned Enterprises (Governance and Operations) Act, 2023, on January 31, 2023, outlines governance and operational guidelines for state-owned enterprises under federal government control. The Act delineates roles, responsibilities, governance structures, and accountability mechanisms for these entities.
Under Section 4(1) of the SOE Act, the SOE Ownership and Management Policy 2023 was formulated with federal government approval. Clause 11 of this policy outlines categorization criteria for SOEs, with a focus on Strategic or Essential SOEs, commercial SOEs for privatization, SOEs for restructuring, and those for eventual privatization.
PPIB argues that it does not fall under commercial entities earmarked for privatization. Instead, it seeks classification as an Essential SOE, crucial for executing government policies where the private sector lacks capacity or expertise.
Considering its statutory mandate, including promoting private sector investment in the power sector and implementing power policies, PPIB contends that it aligns more closely with the characteristics of an Essential SOE. Consequently, PPIB seeks approval from its Board to be classified as such under Clause 11 of the SOE Policy.
