PIA to be Looked After by Sarmaya-e-Pakistan Company

[Abbas Ali]

Federal cabinet meeting chaired by Prime Minister Imran Khan in Islamabad today decided to incorporate a company called 'Sarmaya-e-Pakistan'. The company will look after more than 190 State-Owned Enterprises (SOE) including PIA which is suffering losses and cannot be privatized immediately. Firstly, the airline needs to be rehabilitated.

Sarmaya-e-Pakistan Board of Governors will be headed by Prime Minister. Other members of the board will include three federal ministers. Seven members of the board will be top professionals from the private sector.

Sarmaya-e-Pakistan will submit its recommendations to the federal cabinet. Following recommendations, the federal cabinet will hand over government control of the State-Owned Enterprises to Sarmaya-e-Pakistan company. This step will minimize government control of State-Owned Enterprises and help in running and managing them professionally.

The model and idea of Sarmaya-e-Pakistan is taken from Singapore and Malaysia.

Abbas

[Sadiq]

After Nationalization of key Industries in 1972, a Board of Investment was formed to manage the affairs of State owned Corporations.
That model didn’t prove succesful as this made the Corporations top heavy, adding to their losses.
One hope Sarmaya Pakistan will come up with out of box solutions to turn around the loss making State owned Enterprises this time

[NL]

So the federal cabinet creates a shell company under control of several federal cabinet members. Then the federal cabinet through its own shell company 'recommends' it be handed control of assorted state owned enterprises.

In the end, the country is saved involved cabinet members emigrate to Singapore and Malaysia.

[Abbas Ali]

Following models used in Malaysia and Singapore, PIA will be managed in a professional manner by a holding company without political interference, said Prime Minister Imran Khan in an interview with prominent Pakistani anchorpersons.

Abbas

[Abbas Ali]

Sarmaya-e-Pakistan Limited: Instead of PM, private-sector expert to head firm’s board

By Zafar Bhutta

Published: January 3, 2019

ISLAMABAD: Prime Minister Imran Khan has withdrawn from the chairmanship of board of directors of a new Rs500-billion company named Sarmaya-e-Pakistan Limited following concerns expressed by the Law and Justice Division that he holds a public office, which can lead to conflict of interest.

Sources told The Express Tribune that the federal cabinet had earlier approved Prime Minister Imran Khan as chairman of the Sarmaya-ePakistan board, three ministers and advisers as members and seven members from the private sector with high professional experience.

However, according to the sources, in a recent meeting, the cabinet was told that the Law and Justice Division had voiced concern over the constitution of the new company’s board, saying the prime minister, ministers and advisers could not be made part of the board of directors as they were all public office-bearers. Afterwards, the matter was reexamined and discussed with the Law Division.

Following deliberations, it was decided that secretaries of finance, industries and production, and power would be members of the company from the government side. Apart from these, the company’s chairman would be picked from the private sector as well as seven more professionals as members of the board.

The Pakistan Tehreek-e-Insaf (PTI) government has planned to set up Sarmaya-e-Pakistan with capital injection of Rs500 billion in a bid to take over management control and have better oversight of all publicsector companies, which will likely lead to a turnaround in the performance of loss-incurring firms.

The new company will be incorporated with 100% federal government shareholding. Government shares in existing public-sector companies will be gradually transferred to the new firm. According to the plan, nominations for the board of directors of all state-owned enterprises will be made by the board of Sarmayae-Pakistan.

Final approval will be given by the government.

The performance of public-sector enterprises has deteriorated over the past many years because of a host of factors, particularly the lack of relevant skills and expertise in administrative ministries and divisions for guiding and helping these companies perform in a professional and competitive way.

Moreover, the uniform application of instructions issued from time to time by the Finance Division and relevant ministries has further complicated operations of the publicsector enterprises in a competitive market economy.

In order to revive these enterprises, the PTI government has decided to frame an appropriate governance structure keeping in view the international best practices followed in Singapore and Malaysia.

The Finance Division has also been advised to play a leading role in developing proposals for the purpose. Accordingly, comprehensive deliberations and consultations were held in the Finance Division with key stakeholders including the Law and Justice Division and the Securities and Exchange Commission of Pakistan (SECP).

After the huddle, it was decided that there was a need to appoint qualified professionals on boards of directors of the public-sector companies who could make prudent decisions. At the same time, qualified professionals would be included in the senior management in line with the best corporate governance models in order to improve efficiency.

Apart from these, it was suggested, the oversight and control of the companies may be given to the professionals having extensive experience and expertise contrary to the current practice where the administrative ministries and divisions had full control of the companies.

The Finance Division had proposed some steps for setting up the new company. It suggested that the company may be incorporated with authorised capital of Rs500 billion and initial paid-up capital of Rs100,000, which would be gradually increased after acquisitions.

The appointment of directors on the board will be approved by the prime minister. The companies engaged in commercial operations will be converted into companies having share capital and subsequently will be transferred to Sarmaya-e-Pakistan.

Source: tribune.com.pk

[Abbas Ali]

Sarmaya-e-Pakistan Limited incorporated/registered with Securities and Exchange Commission of Pakistan (SECP) on February 13, 2019.

According to Finance Minister Asad Umar:

"Sarmaya-e-Pakistan, the holding company for state owned enterprises, incorporated. Turning around the state owned enterprises and eliminating their losses which are eating up resources which should be used for development and welfare, is vital for economic turnaround of Pakistan."



Abbas

[Abbas Ali]

According to news sources:

Sarmaya-e-Pakistan Limited will issue certificates and the sale of these certificates will help running Public Sector Enterprises (PSE) including PIA.

Abbas

[Abbas Ali]

Official spokesperson PIA, Mashood Tajwar told Business Recorder that the government has not yet sought a proposal from PIA under the auspices of the newly established Sarmaya-e-Pakistan Company.

Under the government's new strategy, Sarmaya-e-Pakistan will gradually take over management control of loss-making entities with improved oversight of all public sector companies, including PIA. The government's intent is to place state owned entities under the control of successful business executives from the private sector.

Source: brecorder.com

[Abbas Ali]

Government of Pakistan advertisement in February 24 newspaper for hiring Chief Executive Officer, Chief Financial Officer and Company Secretary for Sarmaya-e-Pakistan Limited (SPL).

Government of Pakistan

Sarmaya-e-Pakistan

Vacancy Announcement

Sarmaya-e-Pakistan Limited (SPL) is a Public Sector Company with 100% shareholding of the Government of Pakistan (GoP) established to carry on the business as a holding company. The company is expected to manage a very largo portfolio of Public Sector Enterprises. Sarmaya-e-Pakistan (SPL) requires the services of a team of dynamic and qualified full time professionals for the positions of its Chief Executive Officer, Chief Financial Officer and the Company Secretary. The positions will be filled in accordance with Companies Act, 2017.

Qualifications & Experience

Chief Executive Officer

Master's degree from a local or foreign institution recognized by the Higher Education Commission (HEC) or be a member of a recognized body of professional accountants.

Applicants must have at least twenty years working experience at renowned national/international organization(s) at management positions with at least five years's experience as CEO or equivalent and possess expertise and skills to perform the responsibilities of the position effectively and prudently.

Chief Financial Officer

Member of a recognized body of professional accountants with at least fifteen years' post-qualification experience with minimum five years experience as CFO in renowned national/international organizations.

Company Secretary

(a) Member of a recognized body of professional accountants; or
(b) Member of recognized body of corporate or chartered secretaries; or
(c) Master's degree in Business Administration or Commerce or a Bachelor's degree in law recognized by Higher Education Commission (HEC).

The applicants must have at least fifteen years corporate experience with minimum of five years experience as Company Secretary in reputable organization(s).

Emoluments

Market based salary and perks package based on qualifications/experience of the applicant.

The applicant must submit updated resume along with passport size photograph to the following address within fifteen days of publishing of this advertisement. Further details are available on the website www.finance.gov.pk Candidates can also send their applications to so_cf2@finance.gov.pk



Abbas

[Abbas Ali]

March 14, 2019

Sarmaya-e-Pakistan elects board chairman

ISLAMABAD: Board of Directors of Sarmaya-e-Pakistan Limited (SPL) on Wednesday unanimously elected Ehsan Malik as its chairman.

A statement said the board, in its maiden meeting, also constituted statutory committees as required by the Corporate Governance Rules, 2013.

The board considered the prime objective of the SPL, which was an initiation of a reform process of State Owned Enterprises (SOEs) to improve their efficiency, service delivery and financial viability, the statement said.

In this regard, it added, the board was of the opinion that all options for reform and reinvigorating the SOEs must be kept in mind.

Prior to the board meeting, Finance Minister Asad Umar met the members and congratulated them on their appointment.

During the meeting, the board also deliberated upon the objectives of the company and agreed considered as their primary objective to initiate a reform process that would result in efficient and better service delivery of SOEs.

Source: The News

[Abdulrafeysiddiqui]

Let us now hope that this company does what it is made for specially for PIA ans Pakistan Steel Mill as both are making huge losses.

[Abbas Ali]

Government says Singapore and Malaysia model/idea used to form Sarmaya-e-Pakistan.

On March 12, Prime Minister of Malaysia Mahathir Mohamad said that his government is considering whether to shut, sell or refinance national carrier Malaysia Airlines.

https://www.channelnewsasia.com/news/as ... d-11335570

Abbas

[Abbas Ali]

WASIM IQBAL

ISLAMABAD: The senior joint secretary, Ministry of Finance, briefed the a parliamentary committee on Sarmaya-e- Pakistan Limited (SPL).

The committee was informed that six out of eight independent directors including the chairman of the board resigned from the SPL in May-July 2019, due to which SPL became dis-functional.

The committee recommended that the vacant positions of the Board of Sarmaya-e- Pakistan Limited may be filled immediately.

The senior joint secretary, Ministry of Finance, briefed the committee on Sarmaya-e- Pakistan Limited (SPL).

He informed that the Finance Division incorporated SPL as a holding company, with the approval of the Federal Cabinet on 13 February 2019, which consist of three ex-officio members and eight independent directors.

The key object of the SPL is to direct, supervise and coordinate the management of subsidiary companies/PSCs to be transferred to the SPL gradually from line ministries.

Source: brecorder.com