A loan of US $300 million would be given by Asian Development Bank (ADB) for Public Sector Enterprises Reform Program.
A contract was signed between Mr. Tariq Mahmood Pasha, Secretary Economic Affairs Division (EAD) and Ms. Xiaohong Yang, Country Director Asian Development Bank offering the loan to Pakistan.
Aim of Public Sector Enterprises Reform Program:
- To improve and advance the performance of public sector companies, in order to ensure better governance and accountability. The loan would make sure that the government attain and sustain the reforms started.
- To reduce the dependent liabilities
- To create an economic space for essential development needs
There are two programs Subprogram-1 and Subprogram-2. Subprogram-1 was approved under Programmatic Approach by ADB in 2016. It was to facilitate reform initiative that would end under Subprogram-2.
The PSE reforms initiated through Programmatic Approach would
- Ease cooperation in numerous government sections to implement effective business control values efficiently
- Bring forward important guiding principles, like transparency and reliability in areas like labor that adds up retirement facilities.
- Control and assess PSE performance
- Implement essential structural improvement reforms in specific PSEs to ensure maximum results
Some initiatives introduced under subprogram-1 are long term oriented. If continued assistance is ensured, these reforms can bring forward improved performance of public sector businesses.