Government Fulfills Another IMF Condition by Introducing Key Amendments to State-Owned Enterprises Policy 2023; IFRS Compliance Made Mandatory
ISLAMABAD: Fulfilling yet another key prior condition set by the International Monetary Fund (IMF), the federal government has officially approved and notified major amendments to the State-Owned Enterprises (SOE) Policy 2023.
The new policy will require state-owned entities to keep their financial accounts in line with International Financial Reporting Standards (IFRS), according to the notification.
The following are some key features of the Amended SOE Policy:
All public sector enterprises (PSOs) now have to put in place stringent internal audit mechanisms and procedures under the SOE Act, the ministry of finance said. In addition, the Finance Division will create a comprehensive financial management framework in consultation with the Auditor General of Pakistan.
Corporate Companies: It is expected that the exemptions granted in the ordinary corporate companies will also be applicable to state-owned companies in accordance with Securities and Exchange Commission of Pakistan (SECP) Directives. Meanwhile, banking and financial SOEs will remain regulated by the State Bank of Pakistan (SBP) under regulatory framework and overriding reporting rules of the SBP.
Improving Financial Transparency: The federal government highlighted that the overall aim of these far-reaching changes is to establish the financial discipline, transparency and accountability of state-owned entities to international best practices.