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Express Tribune
15 hours ago
- Business
- Express Tribune
Govt admits poor SOE governance
The government's fiscal support to SOEs – through grants, subsidies, loans and other injections – exceeded Rs600 billion in six months, equivalent to nearly 10% of total revenue receipts. photo: FILE Listen to article In a rare statement, a cabinet body on Friday admitted that poor governance concerns persisted with low transparency in government-owned companies while their cumulative losses increased further to a record Rs5.9 trillion by December last year. The statement issued by the Ministry of Finance after a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) appeared to be a serious charge sheet about the poor performance of SOEs during the July-December 2024 period of the current fiscal year, particularly the power sector performance. The energy-sector circular debt, comprising power and gas, jumped to Rs4.9 trillion by December last year. "Governance concerns persist, with low levels of transparency in beneficial interest disclosures under Section 30 (of the SOEs Act) and other compliance gaps," stated the Ministry of Finance. Finance Minister Muhammad Aurangzeb chaired the meeting. The statement added that "the lack of strategic alignment in business plans and operational inefficiencies across SOEs were identified as critical areas requiring urgent reforms". Muhammad Aurangzeb reaffirmed the government's commitment to strengthening the governance, operational efficiency and financial sustainability of key public sector entities, it said. The finance minister stressed the importance of aligning business plans with national priorities and addressing operational challenges in a timely and coordinated manner. The cabinet committee reviewed the performance of government entities during the first half of current fiscal year, which also coincided with the first year of the government of Prime Minister Shehbaz Sharif. "The cabinet committee noted with concern the staggering cumulative losses of SOEs amounting to Rs5.8 trillion," said the finance ministry. It added that Rs342 billion in additional losses were incurred in just the last six months - equating to a daily loss of Rs1.9 billion. Aurangzeb "emphasised that issues such as inefficiencies in DISCOs' (distribution companies) operations, slow network upgrades by National Transmission and Despatch Company, unfunded pension liabilities and low governance standards continue to erode fiscal space and undermine investor confidence". The finance minister stressed the importance of timely reforms, particularly in power and energy sectors, where circular debt has crossed Rs4.9 trillion, it added. The government reiterated the resolve to bring greater transparency, financial discipline and accountability to the SOE landscape. The finance ministry said that the Central Monitoring Unit gave a detailed briefing on a biannual report on the federal SOE performance covering the period from July to December 2024. The report included a detailed overview of the state of affairs and key challenges confronting state-owned enterprises, including cumulative losses amounting to Rs5.8 trillion, with Rs342 billion being incurred in just six months. The committee was told that circular debt in oil, gas and power sectors crossed Rs4.9 trillion, severely affecting cash flows and asset valuations. The government's fiscal support to SOEs – through grants, subsidies, loans and other injections – also exceeded Rs600 billion in six months, equivalent to nearly 10% of total revenue receipts. In addition, unfunded pension liabilities in DISCOs and other SOEs, estimated at Rs1.7 trillion, remain off the books, as in the case of railways' pension obligations, the meeting was told. It was highlighted that government guarantees currently stood at Rs2.2 trillion, while rollover costs and financial restructuring liabilities further compound fiscal pressures. The finance minister emphasised that directors representing the government on boards of SOEs must exercise due diligence and play an active role in safeguarding the financial health and operational performance of the entities through informed and responsible input. In a recent meeting of the National Assembly Standing Committee on Finance, Muhammad Aurangzeb said that government nominees on SOE boards were performing below requirements and they needed to pull their socks up. The cabinet committee also approved new nominees on various boards. It approved the appointment of chairman of the Quetta Electric Supply Company (Qesco) board, constitution of the board of directors of the Independent System Market Operator, appointment of independent director/chairman on the board of Gujranwala Electric Power Company (Gepco) and independent director on Genco Holding Company Limited (GHCL). It approved the nomination of independent directors on the board of Multan Electric Power Company (Mepco), Power Information Technology Company and the constitution of the board of Energy Infrastructure Development and Management Company. The cabinet body approved the winding up of three subsidiaries of the Ministry of Railways, which included RAILCOP, PRACS and PRFTC.
India.com
a day ago
- India.com
Indian Railways launches Gwalior-Bengaluru weekly express, check train timing, major stations
Indian Railways launches Gwalior-Bengaluru weekly express, check train timing, major stations Gwalior-Bengaluru Weekly Express: What has come as good news for the people of Gwalior is that the Indian Railways has started a new weekly express between Gwalior and Bengaluru. Railways Minister Ashwini Vaishnaw flagged off the train and called it a 'big gift' for the Gwalior-Chambal region. He said that the new train improves rail connections within the state. Gwalior-Bengaluru Weekly Express The Gwalior-Bengaluru Weekly Express (Train No. 11085/86) will start from Gwalior every Friday at around 3:00 PM and reach Bengaluru at 7:35 AM on Sunday. The train will start its return journey from Bengaluru every Sunday at 3:50 PM and will arrive in Gwalior at 10:25 AM on Tuesday. The Gwalior-Bengaluru Weekly Express has 22 coaches. Vaishnaw On Developments In MP Vaishnaw emphasised the Indian government's increased investment in Madhya Pradesh's railway infrastructure. The state's railway budget allocation has dramatically increased from approximately Rs600 crore to Rs14,745 crore. He also cited the state's complete rail electrification and the addition of over 2,651 km of new track in the last 11 years, exceeding the rail network length of several European nations. He said that as many as 80 stations across the state will be redeveloped under the modernisation program. Gwalior is also among these stations and it will receive a special architectural focus. Gwalior-Agra Passenger Train Service The Railway Minister also made a major announcement that the Railways is planning a new passenger train service between Gwalior and Agra, in order to improve intercity connectivity. Major Stations The train offers various classes (sleeper, AC general, and economy) and will travel through Bhopal, Nagpur, Kacheguda, Dhone, and Dharmavaram. Minister Vaishnaw highlighted the Railway Ministry's commitment to facilitating smooth travel for pilgrims attending the upcoming Simhastha Kumbh Mela in Ujjain, including the operation of special trains. Madhya Pradesh has seen major investment in its railway infrastructure, with projects worth Rs 24,000 crore approved in the last year by the government.
Express Tribune
2 days ago
- Business
- Express Tribune
Bilawal explains why PPP supports federal budget
Pakistan People's Party (PPP) Chairman Bilawal Bhutto Zardari on Thursday outlined his party's reasons for supporting the PML-N-led ruling coalition's second budget, saying key amendments were made based on PPP's input. Addressing the National Assembly ahead of the budget's passage, Bilawal explained why the PPP Parliamentarians – a major coalition partner – had decided to back the finance bill, despite earlier objections. The PPP's support comes just days after it strongly criticized the federal budget, accusing the government of discriminating against Sindh and threatening to boycott the approval process. A similar standoff occurred last year between the PPP and the PML-N, which the PTI had described as a "fixed fight" meant to deflect public scrutiny. Nevertheless, things remained largely calm between the PPP and the PML-N during this year's budget session. In his speech, Bilawal noted that the government had increased funding for the Benazir Income Support Programme (BISP), a welfare scheme introduced by his mother & former premier Benazir Bhutto, by 20 per cent. The PPP leader criticized the previous PTI government for attempting to undermine BISP in every budget and commended the incumbent Prime Minister Shehbaz Sharif for consistently increasing its funding since assuming office. The PPP chairman further noted that the government raised the income threshold for tax exemption from Rs600,000 to Rs1.2 million annually. Additionally, he highlighted that the tax on solar panels was reduced from 18 per cent to 10 per cent following objections raised by PPP members. Bilawal also welcomed the decision to curtail the Federal Board of Revenue (FBR)'s arrest powers. Under the new policy, arrests in tax cases can now only be made in instances of proven fraud and not at the inquiry stage. Moreover, such offences have been declared bailable. "These are the reasons why the PPP is supporting this budget," he said. Earlier, the PPP chairman chaired a meeting of PPP parliamentary party, attended by all PPP lawmakers. During the session, PPP members briefed Bilawal on their proposals regarding the federal budget. He was also informed about the amendments incorporated into the budget as a result of PPP's input. Bilawal was given a detailed briefing on the acceptance of the party's demand for a 20% increase in the budget of the BISP program, a party statement said, adding he was also apprised that the tax on solar panels has been slashed by nearly 50% in response to PPP's consistent advocacy. Bilawal was also informed about how the government withdrew the controversial amendments related to FBR's powers to arrest owing to PPP's strong reservations. On PPP's suggestion, the PPP lawmakers were told that the federal budget now includes a 10% increase in government salaries and a 7% rise in pensions. Moreover, PPP legislators were briefed that the party secured complete income tax exemption for salaried individuals earning up to Rs100,000 per month. Another key achievement highlighted during the briefing was the restoration of budgetary allocations for universities in Sindh following PPP's demand.
Business Recorder
2 days ago
- Business
- Business Recorder
Maryam vows to develop infrastructure across Punjab
LAHORE: For the first time, the historic project of construction, expansion and repair of 18,700km of 1471 roads in Punjab has been launched. The construction of 12,000km of 1214 roads has been completed, while the construction of 18,700km of roads will be completed by December. Chief Minister Punjab Maryam Nawaz Sharif presided over a special meeting regarding the ongoing project of C&W Department in which its performance was reviewed. It was informed in the meeting that a historic record of timely utilization of 97 percent of funds for construction and repair of roads in Punjab has been set. Roads worth Rs600 billion have been constructed and repaired in only Rs70 billion through adopting effective construction management policy. For the first time, the average cost of C&W road contracts has decreased by 20 percent. It was also unanimously agreed to introduce a digital toll system in Punjab instead of traditional contracting system. Up to 29 roads have been identified under public-private partnership across the province and it has been decided to operate 9 roads through private partnership. As many as, 1193 projects for construction and repair of buildings have been completed across the province, while the first phase of construction and repair of health centers has also been completed. Projects for construction of Simli General Hospital, Sahiwal Teaching Hospital and Agriculture Malls in four cities have been completed. PCCI-III projects in Multan, Bahawalpur and Sargodha have been completed, while Garment City Quaid-e-Azam Industrial Park is also nearing completion. Cutting-edge equipment will be introduced in the roads project to maintain construction quality. Newly constructed roads will be checked through Roads Surface Profiler, Ground Penetration Radar and Fast Falling Weight Deflectometer. The meeting comprehensively reviewed progress being made from Quaid-e-Azam Interchange up to Wagah Tourism Corridor, Pindi Adiala Road Overhead Bridge, GPO Mall Underpass, Kartarpur Corridor projects. The progress on the Multan Vehari Additional Carriageway and Faisalabad Chiniot Road projects was also reviewed. During the next financial year, 313 new schemes for the construction and repair of roads will be started across the province at a cost of Rs255 billion. The meeting reviewed the Layyah Bhakkar M-3, M-4 Expressway projects. The progress on Dharamah to Kot Chatha, Muzaffargarh to Alipur Head Panjnad, Khanqah Dogran to Sukhekhi, Mianwali to Dadukhel CPEC Interchange, Housing Colony Chowk to Farooqabad and Okara Depalpur Road projects were also reviewed. In Jhelum district, 190 kilometers, Attock 340, Sargodha 860, Mianwali 220, Bhakkar 570, Gujrat 360 kilometers of roads were repaired. In Mandi Bahauddin district, 230 kilometers, Hafizabad 120, Gujranwala 390, Sialkot 230 and Lahore 40 kilometers of roads projects were completed. In Narowal district, 200 kilometers, Sheikhupura 160 kilometers, Nankana Sahib 190, Sahiwal 280, Pakpattan Sharif 210, Faisalabad 620 roads were constructed. In Jhang district, 370 kilometers, Okara 330, Chiniot 180, Multan 390, Lodhran 140, Khanewal 400 and Vehari 270 kilometers of roads were constructed. Bahawalpur 620 kilometers, Bahawalnagar 450, Rahim Yar Khan 670, Rajanpur 250, DG Khan 605, Muzaffargarh 610 kilometers of roads was completed. A progress report on the projects of roads and buildings was also presented in the meeting. The Chief Minister directed to complete all ongoing road projects in the current financial year. It was also informed in the briefing that on the direction of Chief Minister Maryam Nawaz Sharif, roads which had not been built in last 30 years have now been started. The general public and their representatives are profoundly happy over seeing the construction and repair of roads in Punjab. After many decades, attention has been paid to the construction and repair of roads. The Chief Minister said, 'The C&W Department is not only constructing roads but are also using the latest machinery to check the quality of construction work.' She lauded the performance of Provincial Minister Sohaib Bharat and Secretary C&W Sohail Ashraf and their entire team. Copyright Business Recorder, 2025
Time of India
2 days ago
- Business
- Time of India
Bank declares Jayaswal, son as wilful defaulters
Nagpur: Abhijeet Group chief Manoj Jayaswal, whose loans run up to Rs12,500 crore, has been declared a wilful defaulter by Bank of India (BoI). BoI's asset recovery branch at Ranchi, Jharkhand, issued a notice declaring both Jayaswal and his son Abhishek as wilful defaulters for a Rs 164 crore loan granted to Abhijeet Infrastructure Limited — one of the 75 companies in which the duo were directors. Jayaswal is now understood to have relocated to Visakhapatnam in Andhra Pradesh, running a ferro manganese business. Sources say he has wound up from Nagpur entirely. Jayaswal's Abhijeet Group was granted over Rs22,000 crore loans by a consortium of banks of which Rs12,500 crore was disbursed, said a source in one of the lending banks. The group was also one of the biggest beneficiaries of the controversial coal allocation scheme of the UPA regime. A bank has to follow an elaborate procedure for giving the borrower such a tag. According to RBI guidelines, it can happen when the repayment was not done even when the borrower had the capacity to repay. It can also be done if funds are diverted, and the money cannot be traced in the form of other assets. A quick search on BoI records available in the public domain shows Jayaswal was declared a wilful defaulter for two other loans in the recent past. It was for combined Rs600 crore loans granted to Abhijeet Integrated Steel Limited and Corporate Ispat Limited. Jayaswal, was the second businessman after Gautam Adani to buy a private jet, floated a series of companies. The jet has now been grounded after the company could not pay for the maintenance required to meet the DGCA norms. In Jharkhand, where the BoI branch declared him a wilful defaulter, Abhijeet Group had plans to build a power plant. It was also allocated coal blocks in the state on the basis of which it planned to enter the power sector in the state. It set up a power plant even in Nagpur for exclusively supplying electricity to the Mihan-SEZ, but the plans did not work out, ending in a dispute between Abhijeet Group and the state govt.
