Loss-making SOEs Bleeding One Trillion Rupees Of National Exchequer, Senate Told

ISLAMABAD, (UrduPoint / Pakistan Point News - 10th Sep, 2024) Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Tuesday informed the Upper House of the Parliament that the loss-making state-owned enterprises were bleeding one trillion rupees of the national exchequer.

He was responding to the questions during the question hour session of the seventh meeting of the 342nd Senate session here.

Senator Aurangzeb said the Federal government had completed its work on rationalisation of six ministries, whereas under the PWD discussion servants package was on the cards whereas change in legislation was needed as without changing it would not be able to move forward. “The treasury benches need the support of the house to enact this critical legislation for austerity and privatization, whereas pension is a ticking bomb and contributory define contributions are under discussion for public servants that will be proceeded,” he said.

Replying another query, he said the debt to GDP ratio scenario in June 2020 was 77% and in June 2024 it was at 67% whereas its gradient was on right track alongwith its rate of growth declining gradually.

Moreover, he said in Fiscal Year 2021 (FY21) increase in debt percentage was 30% that had reduced to 15% indicating all indicators in positive direction, he added.

Commenting on the government’s strategy to pull the economy out of debts, the Finance Minister said, “Its road to market and we have to change our DNA of economy from import-led to export-led and the federal government are incorporating FDI and financing into exports that will further strengthen the economy.”

He also thanked renowned economist and expert, Dr Kaiser Bengali for joining the government’s austerity committee and also thanked Dr Ishrat Hussain who in June 2021 presented a detailed report to cabinet on downsizing government.

“We are going to take their works further and rightsizing ministries with those two documents presented by Dr Kaider and Dr Ishrat to guide the government’s action for austerity and rationalisation measures,” Senator Aurangzeb said.