The Privatization and Corporatization Board (PCB) has introduced key reforms to enhance oversight and accountability in State-Owned Enterprises (SOEs), focusing on loan approvals, organisational changes, and remuneration policies.

Under the new guidelines, SOEs must now secure approval from the Ministry of Finance and Planning before taking loans. Once a loan is approved by a company’s board, the PCB must be notified within five days, and the Ministry will oversee loans taken on behalf of the Government.

For organisational and salary structure changes, SOEs must gain approval from their board of directors and shareholders, followed by final authorisation from the Ministry of Finance and Planning. The PCB must then be notified within five days.

Additionally, the classification of newly formed SOEs will now be determined jointly by the PCB and the Ministry of Finance and Planning, based on the company’s purpose and capital. This classification will also guide remuneration policies for managing directors, chairpersons, and board members.

Companies will be reassessed after their first operational year to ensure their classification aligns with their performance and strategic objectives.