At a meeting on Wednesday, PM Gilani said it was imperative to devise ways of overcoming ill-management and lack of commitment which caused massive losses of public funds which could have been used for development and welfare of the people.

ISLAMABAD: The federal cabinet approved on Wednesday restructuring of eight major public sector organisations to ensure financial discipline and good governance.

The organisations to be restructured are Pakistan International Airlines, Pakistan Steel Mills, Pakistan Electric Power Company, Pakistan Railways, National Highway Authority, Pakistan Agricultural Storage and Services Cooperation, Trading Corporation of Pakistan and Utility Stores Corporation.

The decision was taken on the basis of a report of the cabinet committee on restructuring of public sector enterprises.

The committee was set up by the cabinet at a meeting held on Dec 16 last year to introduce austerity measures.

In a report as head of the austerity committee, outgoing minister of finance Shaukat Tarin had said that Rs200 billion could be saved by restructuring the organisations.

At the meeting on Wednesday, Prime Minister Syed Yousuf Raza Gilani said it was imperative to devise ways of overcoming ill-management and lack of commitment which caused massive losses of public funds which could have been used for development and welfare of the people.

He said that the better management through restructuring would create a fiscal space and provide relief to the common man.

The meeting highlighted the role of public sector organisations in nation-building and their impact on the socio-economic wellbeing of the people and expressed strong resolve to optimise the functional ability of the organisations which were of critical significance for the national economy but also for better living standards of all segments of society.

Under a plan announced by the cabinet, the organisations will undertake:

i) Formation of an independent and professional board of directors by April 30

ii) Hiring of professional CEOs (nominated by the respective boards) by June 15.

iii) Approval of restructuring plans of the enterprises by the cabinet committee by Aug 31.