The caretaker federal government in Pakistan has taken an important step towards fulfilling the criteria set by the International Monetary Fund (IMF) by issuing the Ownership and Management Policy of Government Institutions for the year 2023.

The newly issued policy will have a comprehensive impact across all government-owned enterprises, with a focus on ensuring that sensitive entities of national security or strategic importance remain under government control. However, the policy also outlines plans for the gradual privatization of commercial government enterprises.

As per the Ministry of Finance’s document, certain institutions will undergo restructuring, with forthcoming decisions shaping their future. Moreover, the policy dictates a shift towards future recruitments in government institutions, which will primarily occur on a contractual basis.

Strict selection criteria will be implemented for key roles such as chief financial officers, CEOs, secretaries, and senior management, and job retention or dismissal will be based on performance evaluations. The policy also stipulates a one-month notice period before dismissal due to unsatisfactory performance.

Within six months of the policy’s implementation, categories for government-owned enterprises will be established. Additionally, all such enterprises will be required to develop robust internal audit procedures. To enforce the new policy effectively, a cabinet committee dedicated to government-owned enterprises will be established.

Furthermore, the policy outlines the creation of a central monitoring unit tasked with overseeing institutional performance. This proposed unit will analyze the business plans of government institutions and provide recommendations. The plan also includes the recruitment of competent and experienced personnel for this monitoring unit.

The Ministry of Finance also revealed plans to compile a database of independent boards of directors for these institutions. Moreover, the policy on government-owned institutions is set to undergo a review every five years, ensuring its alignment with evolving needs and circumstances.

The implementation of this comprehensive policy underscores the government's commitment to bringing structural reforms and enhancing accountability and efficiency within government-owned entities, reflecting a strategic move towards economic stabilization and growth in line with IMF guidelines.