Strong Governance Critical to Unlock SOE Potential, Says OGDCL Chairman

Importance of strong governance in enhancing

the performance of Pakistan’s State-Owned

Enterprises emphasized

Our Correspondent

Islamabad: Zafar Masud, Chairman of the Oil & Gas Development Company Limited (OGDCL), emphasized the importance of strong governance in enhancing the performance of Pakistan’s State-Owned Enterprises (SOEs). Speaking virtually at the ‘Directors Summit 2024,’ organized by the Pakistan Institute of Corporate Governance (PICG) in Karachi, Masud highlighted the vital role SOEs play in the nation’s economy.

SOEs’ Role in Key Sectors

Zafar Masud noted that SOEs are pivotal to Pakistan’s economy, operating in sectors such as energy, transport, communication, and finance. He explained that these enterprises are instrumental in generating employment, building infrastructure, and supporting long-term economic growth.

Challenges Facing SOEs

Despite their strategic importance, the Chairman acknowledged that many SOEs are burdened by inefficiencies, financial mismanagement, and an over-reliance on government bailouts. “Inefficiencies, financial mismanagement, and over-reliance on government bailouts have sadly become synonymous with many of these enterprises,” Masud remarked.

Call for Governance Reforms

To address these challenges, Zafar Masud urged for reforms in governance. He stressed that with improved governance structures, SOEs could unlock their full potential and make a significant contribution to Pakistan’s national exchequer.