ISLAMABAD – The federal government has established Sarmaya-e-Pakistan, aholding company to turn around state-owned enterprises by eliminating theirlosses.

The Securities and Exchange Commission of Pakistan (SECP) issued acertificate of incorporation to Sarmaya-e-Pakistan under the Companies Act2017, according to an official notification.

“Turning around state-owned enterprises and eliminating their losses thatare eating up resources which should be used for development and welfare isvital for the economic turnaround of Pakistan,” said Finance Minister AsadUmar in a tweet on Friday.

The finance secretary is the chief executive and director ofSarmaya-e-Pakistan while the other two directors are Azhar Ali Chadhry andFazal Abbas Maiken. The total paid up capital is Rs100,000 while it is 100%government-owned, said sources in the finance ministry.

It will gradually take over the management control of loss-making entitiesand will have better oversight of all public sector companies, includingPIA and the Pakistan Steel Mills.

The performance of public sector companies has deteriorated over the yearsmainly because of lack of administrative and technical skills and politicalinterference. The government wants to place them under the control ofsuccessful business executives from the private sector.