The Ministry of Finance and Public Enterprises has stated that measures being introduced to reduce costs and improve the efficiency of State-owned enterprises are necessary at this time.

In a letter sent to the Privatization and Corporatization Board (PCB) yesterday, the Ministry instructed that steps be taken to strengthen operations, improve performance, and ensure better management of human resources, while placing companies on a more financially sustainable footing.

In a statement issued today, the Ministry noted that, as part of efforts to improve financial management and reduce expenditure, companies have been advised to reduce their workforce by 33 per cent. The PCB has also been instructed to provide guidance to companies on recruitment practices.

The Ministry further emphasised the need to strengthen recruitment systems, ensuring that hiring is based on merit, qualifications, experience, and capability. It also called for measures to ensure that these principles are consistently applied across companies.

The Ministry described the measures as important steps required at present to ensure that companies operate sustainably in the long term, while aligning with the State’s fiscal and operational policies.

In addition to issuing directives, the Ministry has instructed the PCB to monitor the implementation of these measures by companies and to share progress updates.

The measures build on earlier guidance issued by the PCB to improve financial management, reduce expenditure, and promote more disciplined spending practices.

Key measures include controlling salaries and allowances, limiting promotions to essential cases, halting new recruitment, reducing overtime, cancelling non-essential activities, and cutting down on travel and other discretionary expenses.