Latest news with #SOEs
South China Morning Post
12 hours ago
- Business
- South China Morning Post
Word is bonds: China's provinces use special-purpose funds to pay debts
Hunan has become the first province in China to use the proceeds of special-purpose bonds to guarantee government payments to enterprises, with 20 billion yuan (US$2.78 billion) allocated for this year. The inland province made the adjustment to its annual fiscal budget last month, marking the first time the bonds – typically earmarked for revenue-generating construction projects – will be used to cover government arrears. Proceeds will be distributed based on eligible outstanding debts from existing investment projects, according to a statement from the province's department of finance issued last week. The department said the disbursements will be prioritised to help cities and counties across Hunan complete ongoing construction, clear their obligations and reduce fiscal risk. David Wong, a lecturer at Hang Seng University in Hong Kong, called the move 'a step in the right direction,' but warned that the 20-billion-yuan sum could be 'a drop in the bucket' compared with the scale of local government debt 'It remains unclear which arrears will be prioritised or which firms will actually receive payments,' he said. 'The more complex issue is that this is not simply a matter of 'government owing enterprises' but a complex web of entangled triangular debts.' Criss-crossing chains of obligation make the repayment picture opaque for a number of localities, Wong said. 'In many cases, local governments have indirectly incurred debts through state-owned enterprises (SOEs), which in turn owe money to each other. Some SOEs are involved in circular guarantees and cross-debt relationships with both local governments and private companies.'
Business Recorder
2 days ago
- Business
- Business Recorder
‘Pakistan confronting significant economic challenges due to SOEs' financial performance'
ISLAMABAD: Prominent international governance risk expert, Muhammad Ghazali Aqeeq, has stressed that Pakistan is confronting significant economic challenges due to the financial performance of state-owned enterprises (SOEs). In the fiscal year 2024-2025, these entities reported a staggering combined loss of Rs 851 billion—a figure that, while reflecting a 14.03% decrease from the previous year, underscores the urgent need for effective management practices, he added. Therefore, the implementation of Enterprise Risk Management (ERM) and Internal Audit Management has become essential for Pakistan. Aqeeq maintained that the recent report from the Ministry of Finance highlights the precarious financial situation of SOEs in Pakistan. The net loss of Rs 851 billion represents a significant burden on the national economy – reflecting ongoing issues such as mismanagement, operational inefficiencies and poor governance. While, the decrease in losses is a positive sign, the persistent financial challenges reveal the necessity for systemic reforms, he added. In light of these circumstances, the International Monetary Fund (IMF) has strongly advocated the adoption of ERM and Internal Audit Management frameworks within SOEs of Pakistan. These practices are not merely recommendations: they are essential for ensuring accountability, transparency and operational efficiency. Muhammad Ghazali Aqeeq, who is also the founder of Transvare Corporation, explained that the implementation of ERM allows SOEs to adopt a proactive approach to risk management – systematically identifying and mitigating potential risks that could impact financial performance. By embedding risk management into their operations, SOEs can better safeguard public resources and enhance their resilience against economic shocks. Internal Audit Management plays a complementary role by providing independent assessments of the effectiveness of risk management practices and internal controls. This oversight ensures that financial operations are conducted transparently and that any irregularities are promptly addressed. Together, these frameworks create a robust governance structure that is crucial for restoring public trust in SOEs. By aligning with international best practices, Pakistan can enhance its appeal to investors and stakeholders – promoting economic stability and growth, he added. Ghazali Aqeeq elaborated that in an increasingly complex financial landscape, the need for digitally transformed ERM and Internal Audit Management tools is more pressing than ever – especially for SOEs while we are operating under IMF programs. Digital solutions offer a myriad of benefits that can significantly enhance the effectiveness of risk management and auditing processes. Muhammad Ghazali Aqeeq highlighted that, as Pakistan grapples with the financial challenges posed by its state-owned enterprises, the implementation of Enterprise Risk Management and Internal Audit Management is not just beneficial—it is indispensable. With a reported loss of Rs 851 billion in the fiscal year 2024-2025, the need for effective governance and accountability within SOEs has never been more urgent. By adopting robust ERM frameworks and leveraging digitally transformed tools, Pakistan's SOEs can enhance their operational efficiency, combat financial misuse and ultimately contribute to the country's economic recovery. Copyright Business Recorder, 2025
Business Recorder
11-06-2025
- Business
- Business Recorder
Rs354.8bn tagged for SOEs
ISLAMABAD: The federal government has budgeted Rs354.817 billion to State-Owned Enterprises (SOEs) under the Public Sector Development Programme (PSDP) for the fiscal year 2025–26, reflecting a whopping 80.3 percent increase over the Rs196.839 billion allocated in the previous year. The increase suggests that, for now, the government remains committed to funding public enterprises for strategic and developmental purposes, even as broader SOE reforms remain under discussion. While specific enterprise-wise breakdowns have not been provided in the summary documents, the increased allocation is expected to support infrastructure expansion, modernization of essential services, and capital improvements within key public-sector entities. Copyright Business Recorder, 2025
Eyewitness News
10-06-2025
- Business
- Eyewitness News
Opposition parties reject establishment of another state-owned company
CAPE TOWN - Opposition parties have rejected the launch of another state-owned company that will consolidate and control all digital assets across the state. The Communications and Digital Technologies Committee received a briefing on the consolidation of fibre networks from all State-Owned Enterprises (SOEs) to form the South African State Digital Infrastructure Company. But the move has been criticised by some parties who say there's no need for another state company that will be poorly managed and drain the fiscus. The committee heard on Tuesday how the new state-owned entity would be a merger of state telecoms company Broadband Infraco (BBI) and government-owned signal distributor Sentech. READ: Bill seeking to incorporate all SOEs into 1 holding company open for public participation The company would have control of all fibre networks and digital infrastructure, including those owned by other SOEs that aren't in the Information and Communication Technology (ICT) sector, like Transnet and Eskom. "There is a very clear proposal or recommendation and therefore adopted position of the country, that we should look at streamlining the digital assets of the country in a wholesale provider of broadband connectivity," said committee chairperson, Khusela Diko. But the official opposition MK Party's Colleen Makhubele said she doesn't understand the business case for the new entity. "Is it just not another financial burden for taxpayers? Why do we keep creating state-owned entities when we fail to manage the current ones?" BBI CEO, Gift Zowa said there is a need for the state company to go to areas where the major networks refuse to go, such as rural and remote areas, to give the poor greater connectivity.
Business Recorder
10-06-2025
- Business
- Business Recorder
Budget 2025–26: PSDP set at Rs1 trillion with focus on infrastructure, social development
Under the federal budget for FY2025–26, the government has allocated Rs4.224 trillion for the Public Sector Development Programme (PSDP), reflecting a continued focus on infrastructure expansion and social development. According to official documents, the Federal PSDP will receive Rs1,000 billion, while Rs2,869 billion has been allocated to provincial Annual Development Plans (ADPs). Additionally, Rs255 billion will be provided to state-owned enterprises (SOEs) for development projects. Officials stated that 60 per cent of the Federal PSDP will be allocated to core infrastructure projects, including roads, railways, and connectivity corridors. In contrast, provincial governments will spend the bulk of their development budgets on education, health, water, and other social sector initiatives. 'This distribution is a direct outcome of the devolution of powers under the 18th Constitutional Amendment,' a Planning Commission official said. Key projects Major projects under the Federal PSDP include: Karachi–Chaman N-25 Motorway (813 km): This strategic highway will link Karachi to Afghanistan via Khuzdar, Kalat, Quetta, and Chaman. Hyderabad–Sukkur Motorway: Rs15 billion has been allocated for this vital section of the north-south trade route. Thar Coal Rail Connectivity Project: Rs7 billion will support rail infrastructure for transporting lignite coal. Gidani Shipbreaking Yard Upgradation: Rs1.9 billion is set aside for modernisation and environmental improvements in the maritime sector. The development plan aligns with the government's '5Es' framework and the broader 'Uraan Pakistan' vision, aiming to achieve key Sustainable Development Goals (SDGs) through targeted investments in economic and social infrastructure.
