6113124 , 2143 PM Gmail - Fwd: ADB SOE Reforms Program (RBL) - Pakistan Raihflays

M Gmail Deputy Director Training & Developmont <[email protected]>

Fwd:ADB SOE Reforms Program (RBL) - Pakistan Railways

l message

imtiaz Hussain <[email protected]> Tue, Jun 11, 2024 at 3:16 PM

To: Assistant Director <[email protected]>

---- Forwarded message --_

From: Muhammad Zayed Maud <[email protected]>
Date: Tue, 11 Jun 2024, 15'.14
Subject: ADB SOE Reforms Program (RBL) - Pakistan Railways
To: [email protected] <[email protected]>
Cc: Laisiasa Tora <[email protected]>, Zaio Fawzi <[email protected]>, Khunam Lalani <[email protected]>,
[email protected] <[email protected]>, Rahat Gul <[email protected]>

Oear lmliaz sb,

Hope this finds you well.

Further to our very constructivo meeting held last month, ADB team is supporting the Government of Pakistan in its
next phase of the SOE Reforms, which will also entail supporting the Government of Pakistan in (i) improving
compliance of the SOE Act and implementation of the soE Policy, and (ii) accelerating transformation of key commercial 50Es.
The ADB support will be available under a proposed Result Based Lending (RBL) program to enable the
transformation needed to enhance commercial porformancs and long-term financial sustainability while, in parallel,
reducing the government's footprint.

ln this regard, ADB team is proposing to meet the key representatives of Ministry of Railways & Pakistan Railways on
14 June 2024 (Friday)_a!!_0_e14j!-Mj[g$_gtB{lgay5-aft€, to (a) explore transformation avenues for Pakistan
Railways, (b) key challenges and opportunities and (c) roadmap and way forward. The ADB team will comprise of:

. Adnan Gilani, lnternational Fiscal Risk Management Expert

. Rahat Gul, National SOE Reforms & Transaction Expert
. Khurram Lalani, National SOE Transformational Expert
. Zayed Maud, National Reforms Coordination Specialist

We look foMard to the meeting conflrmation.

Regards,
Zayed

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 LIST O F PA TICIPANTS O F MEETING ON ADB SOE REFOR PROGRAM
(RBL). PAKISTAN RAILWAYS TO BE HELD ON T4.06.2024 (FRIDAY) AT
MI}IISTRY OF RAILWAYS

MINISTRY OF RAILWAYS:

I. Syed Mazhar Ali Shah Secretary /Chairman Railways

2. Mr, Shoaib Adil Additional Secretary
3 Syed Najam Saeed CEO/RAILCOP
4. Mr. Arshad Slam Khattak CEO/REDAMCO
5. Mr. Sufiyan Sarfraz Dogar CEO/PRFTC
6. Mr. Waqar Ahmed Shahid Managing Director/ PRACS
7. Sheikh Sarfraz Ahmed Advisor/ Legislation
8. Syed Imtiaz Hussain Farooq Director/Establishment

ASIAN DEVELOPMENT BANK:

I. Adnan Gilani Intemational Fiscal Risk Management Expert

2. Rahat Gul National SOE Reforms & Transaction Exp€rt
3 Khurram Lalani, National SOE Transformational Expert
4. Zayed Maud National Reforms Coordination Specialist
 AGENDA ITEMS
FOR MEETING ON ADB SOE REFORMS PROGRAM (RBL) - PAKISTAN
RAILWAYS TO BE IIELD ON 14.06.2024 (FRIDAY) AT }IIMSTRY OF RAILWAYS

(a) Explore Transformation Avenues for Pakistan Railways

(b) Key Challenges and Opportunities

(c) Roadmap and Way Forward

 ADB
Proposed
SoE
Program

ADB
AIDE MEMOIRE

PAK: Proposed Accelerating Stateowned Enterprlse Transformafion program

Reconnaissance Mission (G-24 May 2024)

A lntroduction

1. The Asian Development Bank (ADB) fielded a reconnaissance mission (Mission)l to

lslamabad, Pakistan, from 6-24 May 2024 to develop the scope, coverage, and design of the
proposed $400 million results-based loan (RBL) for the Accelerating Stafe-Owned Enterprise
(SOE) Transformation Program. The main objective of the mission was to: (i) conduct seminars
for Finance Dlvision (FD), Economic Affairs Division (EAD), and other stakeholders on the RBL
modality, (ii) discuss with the Government of Pakistan the scope and coverage of the proposed
RBL program and accompanying technical assistance (TA), (iii) support the FD's stakeholder
engagement workshops on the application of the State-Owned Enterprises (Governance and
Operations) Act, 2023 (SOE Act) and implementation of the SOE (Ownership and Management)
Policy, 2023 and sub-policies (soE Policy), and (iv) discuss and finalize an action ptan for TA
support to the Central Monitoring Unit (CMU) of the FD.

2. The Mission met with senior officials of the FD, EAD, Privatization Commission (pC),
Ministry of Energy (MOE), Petroleum Division (MOE), Power Division (MOE), pakistan State Oit
(PSO), Sui Southern Gas Company (SSGC), Hyderabad Etectricity Supply Company (HESCO),
P_e9!1ryar Electricity Supply Company (PESCO), Sukkur Electric power Company Limited
(SEPCO), and Lahore Electric Supply Company (LESCO), Ministry of Commerce (MOC),
National Highway Authority (NHA), Ministry of lndustries (MOl), Ministry of Railways (MOR),
Pakislan Railways, Ministry of Maritime Affairs, Pakistan National shipping corporation (pNSci,
and security and Exchange commission of Pakistan (sEcp) to seek their views on emerging
challenges with regards to the implementation of the soE Act and soE policy, as well ai to
confirm interest in engaging with ADB under the proposed RBL to support the Federal
Government's transformation agenda. The Mission also consulted extensively with the
lnternational Monetary Fund (lMF) and world Bank to ensure that emerging views and
suggestions regarding the scope and coverage ofthe RBL program were aligned and consistent
with the IMF's main policy recommendations. A detailed list of persons met is aftached in
Appendix L

1 L€isiasa Tora, Principal Public Management SpecialisUMission Leader, Public Sector Management and Governance
S-ector Group (PSMG-SG); Sana Masood, Economist (Public Finance), PSMG-SG; Zain Faw;i, Senior Project Officer
(Financial Sectoo, PSMG-SG; Catherine Debalucos, Project Analyst, Project Coordinator, PSMG-SG; ihristopher
Russell, lnternational SOE Reform ExperuTeam Leader; Naveed lftikhar, SOE Policy and lnstitutional Specialist;
Natasha Jehangir, SOE Legal & Regulatory Specialist; Rahat Gul, SOE Reform and iransaction Specialist: Adnan
Gilani, lnternational Fiscal Risk Management Expert; Khurram Lalani, SOE Transformation Specialist;Aman Mangrio,
SOE Financial Management and Database Specialist; Zayed Maud, Reform Coordination Specialist; and Zumer2ia,
Reform Communication Specialist. Thuy Trang Dang, Senior Policy Specialist, Strategy and Poticy Department, and
DL Yin-Yin Nwe, RBL Expert, joined the eady part of the mission (6-'lO May 2024) to conduct training seminars on the
RBL modality with lhe project team, the client (FD and EAD), sector staff from ADB'S Pakistan Residenl Mission, and
Bimbika Basnett, Gender Specialist, Climate Change and Sustainable Development Department-Gender Equity (CCGE)
and samina sabir, Gender ofiicer, cccE. zahirah Akram, Deputy secretary, corporate Finance, FD; Mdjii soon,
Director General, CMU, FO; and Dr. lmran Khan, Senior Joint Secretary, Corpoiate Finance, FD, also joined parts oftne
mission and led consultations with some of the lin6 ministries and SOES.

ASIAN DEVELOPMENT BANK

5 ADB Avenue, Mandaluyong City
r55o Metro Manila, Phllippines
Tel+63 2 632 4444
Fax +612.636 a414
 :, ql c!irr liQ.

[Hnhirlr
2

3. This Aide Memoire reflects the dialogue with key government agencies and development
partners. Understandings reached during the Mission are subject to approval by the government
and the ADB Management. The Mission would also like to thank the concerned government
officials for their cooperation and courtesies received during the Mission.

B. Background

4. Macroeconomic and fiscal situation. Pakistan's sustained economic progress has been
impeded since the 1980s by a pattern of recurrent bursts of strong economic growth interspersed
with periods of economic crises. ln July 2019, the country embarked on an ambitious stabilization
and structural reform agenda under the $6.5 billion extended fund facility (EFF) with the lMF. The
EFF's implementation was largely uneven as successive governments dealt with multiple shocks
between 2020-2022, that is, the coronavirus disease pandemic, post-pandemic global supply
disruptions, the surge in international commodity prices, the cost-of-living crisis, the Russian
invasion of Ukraine, and the 2022 floods that caused widespread devastation across the country,
in addition to policy slippages following domestic socio-political tensions. Although the EFF
expired in June 2023 without completion of the final review, the IMF recognized that significant
progress had been made in stabilizing the economy and approved the $3.0 billion Stand-By
Anangement (SBA) in July 2023. The SBA was subsequently concluded following the completion
of the second and final review in April 2024. Althouoh Pakistan's implemenlation of the SBA
translated into siqnificant oroqress toward economic stabilization and increased market
confidence. the country's medium-term economic outlook remains challenoino and hinoes on the
imDlementation of imoortant and lonostandinq structural reforms. The government is expected to
enter into a comprehensive economic policy and reform program that can be supported under a
new EFF in June-July 2024, which will focus on moving Pakistan from economic stabilization to
strong, inclusive, and resilient groMh through: (i) shengthened public finances to reduce
vulnerabilities by improving domestic revenue mobilization while scaling up spending for human
capital, social protection, and climate resilience; (ii) energy sector viability, including reforms to
reduce the high cost of energy; (iii) continued progress towards low and stable inflation through
appropriate monetary and exchange rate policies; and (iv) imoroved public service orovision
throuqh SOE restructurinq and privatization.

5. Longstanding structural constraints, Persistent structural challenges that impede

overall economic progress include (i) a narrow production and export base that makes the
economy less resilient to economic shocks and results in a binding balance-of-payment constraint
on growth, (ii) energy sector issues including circular debt, transmission losses, and inefficiencies
that impact the sector's financial viability and reliability, (iii) broader SOE corporate governance
and commercial performance challenges, (iv) large and recurrent fiscal deficits, and (v) eroded
macroeconomic buffers that reflect structural weaknesses in economic management. Limited
fiscal soace leads to chronic u nd eri nvestment in vital sectors such as infrastructure and soclal
services. hinderino oooulation resilience. This in turn escalates the cost of doino business for the
orivate sector. limitino its i nternational trade and investment comDetitiveness

6. SOE commercial performance challenges. As of fiscal yeat (FY)2022, the

government's SOE portfolio comprised a total of 206 entities, including 88 commercial SOEs.
These commercial SOEs span a variety of sectors, including energy, finance, manufacturing,
infrastructure and transport, and trade. Ten of these enterprises are publicly traded on the
Pakistan Stock Exchange, adhering to all the listing regulations. ln addition, the non-commercial
SOE portfolio in FY2O22was made up of 45 entities. ln FY2022, commercial SOEs accounted for
 3

99% of the total SOE portfolio in terms of asset and revenue base. Commercial SOES are
responsible for all the SOE portfolio's net losses. Non-commercial SOEs are largely financially
self-sustaining entities and are established to implement government policy roles that the private
sector is cunently unable to undertake. According to joint ADB and World Bank analysis of the
fiscal impact of commercial SOEs, since FY2016, commercial SOEs in Pakistan have been
persistently making losses. The power sector is the laroest loss-makino sector for commercial
SOES. followed bv the infrastructure. transoort. and communication sectors. The oil and gas
sector accounts for the largest share of profit. Aggregate net losses decreased from 0.3% of GDP
in FY2021 to 0.2o/o ol GDP in FY2022 due to increasing revenues (11.60/o ol GDP in FY2021 to
15.4Yo of GDP in FY2022). At the same time, the aggregate profitability of these SOEs has
deteriorated since FY2014, when the aggregate profit was 0.8% of GDP, to a loss of 0.2% of GDP
in FY2022. ln creatinq SOEs. the qovernment has a resoonsibilitv to ensure that thev are run
efficientlv and in the best interest of their ultimate owners. the oeoole of Pakistan.

7. Drivers of poor SOE performance. A detailed ADB diagnostic assessment of Pakistan's

SOEs conducted in 2020 identified the following main drivers of poor performance: (i) lack of a
consistent and overarching law applying to all SOEs so that they operate under a common legal
framework and, instead, overlapping legal and regulatory mandates, which leads to poor
corporate governance practices; (ii) lack ofan overarching SOE ownership and reform policy and
limited guidance on desired social and commercial outcomes. No formal PSO framework whereby
PSOs costed or contracted, which puts the government's fiscal position under more pressure;
and (iii) decentralized SOE monitoring practices that vary across relevant ministries, which is
inefficient and creates confusion regarding ownership management responsibilities; and (iv)
conflict of interest caused by the large government footprint in the major economic sectors, e.g.
power and transport, because of which sector regulation becomes subservient to political and
social pressures. There is no clear sense of financial positions and the government's overall fiscal
exposure. ln addition, a 2024 ADB fiscal risk analysis highlighted two main sources of fiscal risk
for '17 commercial SOEs: (i) Govemment policy implementation via unfunded PSOs and
unrecognized subsidies, and (ii) SOE inefficiency that create losses over and above the technical
and commercial losses allowed by the sector regulator i.e., the SOE fails to generate sufficient
revenue to cover costs and a return on the government's investment. While the SOE Act and
Policv provide the leqal mandate and operational framework for addressinq unfunded PSOs, due
to the linked operational inefficiencies, certain SOES should be selected for orqanizational,
functional. and financial restructurino in order to imorove technical and commercial oerformance
and reduce the oovernment's adverse imoact.

8. Government national strategy. The application of the SOE Act and implementation of
the SOE Policv provides the strateqic fram rk for the oovernment's SOE reform aqenda.
Between July 2019 and July 2023, successive IMF programs have identified SOE reform as a
high priority and central to the government's plans to address structural impediments to
investment and job creation, balanced economic growth, and human capital development. ln the
2019 EFF, for example, the government agreed to four initial structural benchmarks to improve
SOE governance, transparency, and efficiency: (i) the privatization of seven SOEs; (ii) increased
SOE transparency through new audits of Pakistan lnternational Airlines and Pakistan Steel Mills;
(iii) a triage of SOEs that would designate them as either for sale, liquidation, or retention under
state ownership; and (iv) development of an overarching SOE legal framework aimed at
modernizing and clearly defining the role of the State as owner, regulator, and shareholder and
drawing from international best practices in corporate governance principles. The 2023 SBA
contained structural benchmarks to support further progress on structural reforms. The final
4

review of the SBA highlighted the government's efforts to implement the SOE Act and SOE Policy
framework, including (i) an effective updating of the March 2021 SOE Triage Plan to propose
which SOEs are to be retained, privatized, and/or restructured; (ii) a review of any required
governance restructuring to align with the new provisions; (iii) further amendments for four
statutory SOEs to be brought into line with the SOE Act. The government anticipates then moving
on to the remaining 16 statutory SOES; (iv) the issuance of legal guidelines and training for SOEs
on the application of the new ftamework; and (v) the further operationalization of the CMU, which
published its first SOE Report in December 2023 for FY2023. The CMU's next report in June 2024
will highlight further progress toward reporting elements required by the SOE Act while progress
against performance benchmarks is expected in future reports.

9. Ongoing ADB support. Between 2020-2023. ADB suooort for SOE reform focused on
suooortinq the oovernment to orooressivelv imDlement its reform oriorities through: (i) enactment
of the SOE Act and amendments to select SOE establishing acts (such as the NHA and PNSC
establishing acts), (ii) Cabinet approval of the SOE Policyand sub-policies (fore.g., establishing
clear roles and accountabilities for SOE directors, developing a comprehensive PSO framework
that would apply to all SOEs, developing an effective fonarard-looking business plan containing
financial and non-financial performance targets, and bringing current audited accounts that meet
requirements in the SOE Act), (iii) establishment of the CMU and preparation of operating
manuals to support the CMU's core functions, (iv) development of a fiscal risk management model
and preparation of a fiscal risk analysis report, including for NHA and Pakistan Railways, (v)
preparation of a reform communication plan, which includes stakeholder engagement strategies,
(vi) development of a hybrid MS Excel and Power Bl electronic database for the CMU, and (vii)
launch of a Directors Training Program for SOE directors based on the requirements of the SOE
Act, Companies Acl2Q17, and other relevant codes and laws. This support has been provided
through TA, that is, PAK: Suppofting State-Owned Enterpise Corporate Governance and
Commercial Pefformance Knowledge and Suppott Technical Assistance Project. The $'l .4 million
TA is aligned with the operational priorities of ADB's Strategy 2030, particularly on accelerating
progress in gender equity and on strengthening governance and institutional capacity; the
Sustainable Development Goals; and ADB's country operations business plan for Pakistan,
2021-2025. ln Aoril 2024. the new qovernment throuqh the Minister for Finance. Senator
Muhammad Auranozeb. requested ADB's support for a next ohase of SOE reform. The nelit
phase would build on progress made in the first phase to achieve three key objectives: (i) improve
compliance of the SOE Act and implementation of the SOE Policy, (ii) strengthen
operationalization and functioning of the CMU, and (iii) accelerate transformation of those
commercial SOEs that the government considers strategic and essential. lt was aqreed that these
obiectives would best be achieved throuoh a combination of an RBL proqram for $400 million.
onooino $1.4 million TA to suooort prooram oreoaration. and oiqov-backed $600.000 TA to
supDort oroqram imDlementation.

10. Results-based lending financing modality. The RBL financing modality is considered
appropriate for the program based on the following factors, that this, the RBL: (i) ensures
oovernment ownershio and accountabilitv as it supports part of the government-owned second
phase of SOE reforms; (ii) suooorts the focus on results in the second phase of SOE reforms as
it facilitates the development of a results framework, identifies key results, and incentivizes the
delivery and sustainability of key results by linking disbursements directly to defined results; (iii)
imoroves effectiveness and ncv in orooram imolementation by using government systems
and procedures (and can enhance these as needed); (iv) suooorts oovernment institutions to
imolement its own s s and procedures: and (v) where there are opportunities for cofinancing,
 5

enhances imolementation efficiencv, because ADB and other development partner support the
same results framework.

C. Key Mission Findings

11 . Macroeconomic and flscal update. Macroeconomic conditions have oenerallv imoroved

with oradual economic recoverv from the challenoes of the 2022 floods and other successive
shocks. ADB projects real GDP growth of 1.9% in FY2024 (ADO, April2024), an increase from
lhe 0.2% contraction estimated in FY2023. Growth in FY2025 is projected to increase further to
2.8% (ADO April2024). lnflationary pressures are easing yet remain elevated. Average inflation
is projected to recede lo 25o/o in FY2024 and decline further to 15% in FY2025, with improved
commodity supplies, stability in the exchange rate, and appropriately tight fiscal policy. The
current account deficit is expected to remain low in line with tight domestic demand and slow
economic activity. ADB projects the current account deficit to narrow to 1.5% of GDP in FY2024
but it may end-up even lower than 1.0% of GDP due to lower imports. Gross foreign exchange
reserves increased to about $8.2 billion in July 2023, up from $4.5 billion in June 2023, and has
maintained around that level as of 8 April 2024 ($8.0 billion) while the exchange rate has been
broadly stable. Assuming sustained sound macroeconomlc policy and structural reform
implementation, inflation should return to the State Bank of Pakistan's official target range of 5.0-
7.loh by September 2025.Ihe fiscal deficit will remain high in FY2024. Achieving a primary
surplus (balance excluding interest paymenls) of 2.7o/o of GDP reflects overall strong revenue
performance in the first half (July-December) ot FY2024, which is encouraging. However, high
interest payments, due to high interest rates and exchange rate depreciation, will increase the
fiscal deficit outturn to 2.3o/o ol GDP and will keep the overall deficit elevated (projected at 7.6%
of GDP) in FY2024. Public debt continues to be assessed as sustainable accordinq to the latest
IMF debt sustainabilitv analvsis (lMF. 2024). However, debt sustainability continues to be at risk
from gross financing needs, particularly as fiscal and reserve buffers have been
depleted. Therefore, timely disbursements of committed bilateral and multilateral support is
critical in the period ahead. Risks to debt sustainability include higher interest rates, a larger-than-
expected slowdown in growth due to policy tightening, pressures on the exchange rate, policy
reversals, slower medium-term growth, and contingent liabilities related to SOEs. The
qovernment's fiscal soace is further curtailed considerinq the impacl of unfunded PSOs and
unrecoonized subsidies. which worsen the qovernment's underlvinq fiscal and debt oosition.

12. Application of the SOE Act. While significant progress has been made to establish a
strong SOE legal framework to improve SOE financial discipline, strengthen govemance, and
enhance institutional oversight via the CMU and CCSOE, the Mission found that there is still some
confusion regarding the main objectives of the SOE policy and legal framework, how the SOE Act
relates to other relevant laws_(especially vis-a-vis the Companies Ad2017), and generally limited
knowledge and understanding-some Line Ministries (LMs) and SOEs are using this as an
excuse for limited compliance. Other common issues and concerns raised during stakeholder
consultations include: (i) whether certain SOEs are excluded from the law (for e.9., the seven
SOEs now owned by the Sovereign Wealth Fund) and whether certain SOEs fit the definition of
an SOE, (ii) SOE views that LMs are still interfering in SOE Board matters contributing to
ineffective application of the SOE Law, (iii) confusion regarding the role of the CMU and the extent
of its mandate and reporting coverage, (iv) lack of understanding around the appointment of
Board Chairpersons and whether the individual needs to be an independent director, and (v) lack
of clarity about who is responsible for approving SOE business plans (BPs) and statements of
corporate intent (SCl) i.e., Finance Division or LMs or SOE Boards. Although the Mission, with
6

excellent support from the FD and the CMU, were able to clarify and resolve most of these issues,
svstematic and sustain ed stakeholder enoaoement and consultation is needed to imorove
familiaritv and understandino with the orovision of the SOE Act. Participation by SOE directors in
the Directors Training Program jointly developed by ADB and the Pakistan lnstitute of Corporate
Governance will form part of the engagement that is needed but more consultations and training
programs, especially as transformation efforts commence, will be crucial.

13. lmplomentation of the SOE Policy . The Mission found that im olementation of the Policv
was also limited and the Policv itself not well understood. Many commercial SOEs have yet to
prepare categorization plans (which are due by 30 May 2024), adopt BPs and SCls, adopt, and
publish audited lnternational Financial Reporting Standard (IFRS)-compliant annual financial
reports, ensure that Boards are majority independent, and identify, cost, and contract PSOs. The
stakeholder outreach was useful in terms of (i) clarifuino and resolvi no issues. and confirmino that
the SOE Policv includes the criteria for ownershio. retention. and establi shment of SOEs. (ii) the
role of the oovernment in the oovernance of SOEs via the Cabinet Committee on SOEs
(CCSOEs). (iii) the role and ooerations of th e CMU (hiohliohtinq. in Darticular. its role in
maintainino a database SOE directors based on data orovided bv LMs) . (iv) quidelines for board
nominations committees and the orocess of ev aluatino director oerformance. and (v) the PSO
manaoement framework. At various meetings and consultations, the FD urged LMs and SOES to
reach out to seek ADB support to improve implementation of the SOE Policy and meet deadlines
prescribed under the Policy. Preparing three-year business plans, for example, would help SOEs
to stralegize their operations and develop financial and non-financial performance measures
demonstrating how they will achieve their primary objective and other policy objectives. Such
business plans require SOEs to adequately plan for both commercial and non-commercial
activities. Non-commercial activities undertaken by SOEs at the direction of the government must
be fully and transparently costed and financed through PSO subsidies or other forms of
compensation in a manner that is consistent with and supports the SOE'S commercial mandate.
Business plans must be approved by SOE boards, which will be held accountable for results.

14. Further operationalization of the GMU. ln response to concerns regarding the CMU
weakening the role of the LMs in overseeing the SOEs that fall under their mandates, the Mission
clarified that the CMU's ma n role is to o rovide analvsis and recommendations to the qovernment
reqardino SOEpejprmance, international best practices, risk manaqement, PSOS, and anV other
required information. ln particular, the CMU will report to the public and the government (via the
CCSOE) in the form of semi-annual and annual reports to the government on compliance with
the SOE Act and policy, reform progress, policy development, and the public through an annual
aggregate report on SOE performance. The Mission was also able to clarify other issues such as:
(i) the role of the CMU vis-ir-vis SOE Board monitoring, (ii) the capacity of the CMU to provide
financial and non-flnancial (sector specific) performance monitoring, and (iii) whether the CMU's
electronic database was operating. ln addition, a one-day training session on the SOE Act, Policy,
and the role and functions of the CMU was conducted with the CMU on 17 May 2024 to ensure a
common and accurate level of understanding was reached. Topics discussed during the session
ranged from political economy issues to the importance of 'hand-holding" guidelines to
operational concerns such as support for Board evaluation, the preparation of BPs and SCls,
evaluating BPs and SCls and application of the Pareto principle recognizing that the CMU is not
fully staffed, positioning the CMU as a "knowledge hub" for international best practices that all
LMs and SOEs can access, and persisting with the current MS Excel-based database until the
ADB-funded diagnostic assessment of the CMU's information technology and system
 7

requirements is completed and recommends an off-the-shelf software solution or a bespoke

software solution.

15. Accelerating SOE Transformalion. The SOE Law and Policv reoresent a oaradiom shift
in terms of scalino back the state's footorint and imorovino services and financial suslainabilitv.
The main objective of SOE transformation is to enhance efficiency, competitiveness, and overall
performance. Transformation is a significant component of the government's SOE reform agenda
and is driven by the need to address inefficiency, corruption, and the rising fiscal burden. Some
priority SOEs should now be selected for organizational, functional, and financial restructuring.
Selection of SOE candidates for organizational restructuring should not only factor in poor
financial performance but also factors such as the potential of improvement in service delivery,
costs, and accessibility in the relevant sector or impact on market development and competition.
The overall outcome must be improving SOE viability, reducing fiscal liabilities and the role of the
state in commercial enterprises, and improving services. Key steps for transformation include (i)
budgeting for restructuring and transaction advisory costs, (ii) developing a performance
improvement roadmap for SOEs to be retained, which also includes organizational restructuring
and human resource management plans, (ii) resizing, and improving the SOE portfolio by closing
insolvent SOEs and restructuring inefficient but economically viable SOEs (while assessing the
potential for divestment) where possible. The FD identified four candidates for transformation
under the proposed ADB RBL program: NHA, Pakistan Railways, and two power distribution
companies (established to manage the distribution and supply of electricity to consumers within
a specific geographic region in Pakistan) that would not be privatized but were candidates for
transformation options such as corporate restructuring, management contracts, concession
agreements, joint ventures, public-private partnerships (PPP), and listing on the stock exchange.
The latter list includes HESCO, PESCO and SEPCO. Of the four candidates, the NHA has the
largest fiscal impact and requires significant financial restructuring, with a loan stock equal to
4.0% of Pakistan's gross domestic product (GDP) and an asset base amounting to 9.0% of GDP.
The Mission confirmed the interest of NHA. Pakistan Railwavs. and the four DISCOs in receivinq
ADB suoport to comolv with the orovisions of the SOE law and Dolicy. as well as to leveraqe the
TA and financial suooort under the orooosed RBL orooram to enable the transformation needed
to enhance commercial performance and lonq-term financial sustainabilitv while. in oarallel.
reducinq the oovernment's footorint.

16. Status of Privatization Process. To limit fiscal costs to the government stemming from
commercial SOE losses, the implementation of the SOE legal and policy framework is critical and
should be expediated, including privatizations. Kev steos for its imolementation include: (i)
securino fundino for restructurino and transacti advisory costs, (ii) developinq a performance
improvement roadmap for SOEs to be retained, and (iii) resizino and improvinq the SOE portfolio
bv closino insolvent SOEs and restructurinq inefficient but economicallv viable SOEs. while
assessinq the Dotential for divestment. For decades , governments have privatized SOEs to
improve their performance and lower fiscal risk. Reforms for SOEs attempted to improve their
financial and operational performance and to operate on the strength oftheir balance sheets. But
they rarely made profits or paid dividends. Measures were taken to reduce the flow of public funds
to SOES, separate commercial and noncommercial objectives, obtain commercial financing,
strengthen oversight and monitoring, improve SOE boards and management, and minimize
political interference. Some actions met with success, but many did not. The Mission found that
althouoh Pakistan's cunent privatization orocess was develooed over a decade aqo and the
operatinq environment has chanqed siqnificantly. the qovernment has continued to face limited
success in implementino its orivatization oioeline which includes 25 SOEs that operate in the real
8

estate, aviation, finance, industrial, and energy sectors. According to the PC most of the SOEs
earmarked for privatization are distressed and facing various operational and management
challenges, requiring them to be restructured before privatization. ln addition, LMs, which are
usually required to undertake pre-privatization restructuring, are disincentivized to do so due to
cost, lack of technical capacity, and perceived loss of significance and influence. These factors
have caused numerous hindrances and delays. Althouoh the Mission clarified that its support for
SOE transformation stoooed short of full privatization. the PC nevertheless reouested ADB
suDoort for restructurino orior to sale. which could include explorinq a ranqe of options for new
manaoement: shuttinq down. separatino. or solittinq off oart of the SOE that will not be sold or
sold separatelv: oovernment eouitv iniections and restructurino liabilities: reductions and chanoes
to the labor force: and new investments for modernization or rehabilitation. Based on ADB's
experience with SOE privatization in other countries, close attention to the following issues is
important in order for the divestiture to succeed: (i) strategic planning so that the government is
clear about why it wants to privatize, which SOEs should be privatized, and what it hopes to
accomplish, (ii) pre-transaction preparations, including that the institution tasked with privatizing
SOEs is competent, well-resourced, and subject to high standards of accountability and
transparency, and (iii) post-transaction issues, including ex-post evaluation of privatization and
corporate governance. The Mission undertook to contact ADB'S Office of Market Develooment
and Public-Private Partnerships (OMDP) and Private Sector Ooerations Deoartment (PSOD) to
determine whether there miqht be interest in supoortinq the ore-sale oreoaration throuoh
sovereion enoaoement (OMDP) and the orivatization transaction throuoh non-sovereion
ooerations (PSOD).

17. Status of SOE director training program. ADB has develooed a suite of SOE director
trainino modules based on the SOE Act Poli . other relevant laws. and international oood
practice. The modules cover such matters as governance, SOE monitoring, director duties roles
and responsibilities, functions and roles of the Chair, directors, and boards, planning and
accountabilities, board selection and performance reviews, and PSOS. The modules are based
on the requirements of the SOE Act and Pakistan's Companies Act 2017 and other relevant codes
and laws and have been certified by SECP. Prior to the mission, ADB had organized a series of
"train-the-trainers" sessions to ensure there was sufficient expertise to conduct DTPs as needed.
The first DTP sessions were conducted from '1s',l7 May 2024 in Karachi and 21-23 May 2024 in
lslamabad The Mission advised that ADB could orov ide tarqeted capacity buildinq and traininq
rams for SOE boards and LMs to su nt DTP if

'18. Coordination with the lnternational Monetary Fund and other development partners.
The proposed program will be prepared in close collaboration with the IMF and other development
partners-e.9., the World Bank and the United Kingdom's Foreign, Commonwealth and
Development Office-that are supporting parts of the SOE reform agenda, as well as related
initiatives in fiscal risk management, public financial management, public debt management,
PPPs, and public investment management. Strono coordination and collaboration across each
feature of the RBL orooram will be needed. as well as. where oossible. ioint oolicv dialooue and
messaqino to oromote more meaninqful and impactful reforms.

D. Proposed Program Scope

19. Proposed RBL program. Following the highly effective training seminars conducted by
SPD (refer footnote 1), which was well received by the project team, the client (FD and EAD), and
ADB sector and thematic teams based in, or on mission to, Pakistan, the Government of Pakistan
 I

agreed to proceed with the $400 million RBL program during FY2025-FY2029 to support critical
reforms that will improve SOE financial discipline, strenglhen governance, and enhance
institutional oversight. Based on the main findinos of the Mission. the orooosed RBL proqram will
contribute to the broader oovernment SOE reform and transformation aoenda bv imorovino the
oolicv. leqal. and institutional framework for SOES. strenotheninq institutional caoacitv. and
imorovino coroorate qovernance and financial sustainabilitv without incurrinq additional fiscal
costs to the qovernment. Table 1 summarizes the proposed program scope.

Table 1: Pro P m Sco

Item Broader Government Prooram Results-Based Lendino Proqram
Outcome Macroeconomic management Commercial SOE financial discipline
strengthened, and more sustainod and and profitability, public service delivery,
inclusive growth supportsd (Vision and reduction in th6 governmsnt fiscal
20251. footDrint imDroved.
Key outputs
lmprovemenl in the policy, legal, and Three outputs: (i) implementation of the
institutional framework for SOES; SOE law and policy improved, (ii)
institutional strengthening of FD and operationalization of the CMU
CMU, LMs, and SOEs; improvement in strengthened, and (iii) SOE
corporate govemance; achievemenl of transformation accelerated.
primary objective to
be financially
sustainable.
Activity lypes Support for enabling environment
Support for implementation of policy and
reforms; institutional strengthening; legal framework; systems and process
digital transformation; fiscal improvement including electronic
management; public financial database; capacity building in SOE
manag€ment; public investment ownership and oversight functions;
management; public-private implementation of
PSO framework,
partnerships; privatization.
support for
SOE transformation;
improved stakeholder engagement and
communication; capacity building for
Boards of SOEs: and enhanced
digitization.
Expenditure size
$67,600 million' $6,760 million"
Main financiers
GOP: $42,250 million GOP: $6,360 million
and their
respective total ADB: $400 million ADB: $400 million
amounts
Other development partners: $24,950
million
Geographic Nationwide Nationwide
coveraqe
lmplementation FY2025-FY2029 FY2025-FY2029
period
ADB = Asian Devolopment Bank, CMU = Central Monitoring Unit, FD = Financo Division, FY = fiscal year, GOP =
Govemment of Pakistan, LM = Line Ministies, SOE = statsowned enterprise.
.Total public expenditure in the FY2024 national budget.
"Direct govemment support to SOES in the form of subsidies, loans, and oquity investments accounted lot 2.Oo/o of
GDP.
Sources: Asian Dsvelopment Bank, World Bank, and FD staff estimates.
10

E. lndicative Program Results

20. The impact of the program is aligned with Pakistan's Vision 2025, that is, macroeconomic
management strengthened, and more sustained and inclusive groMh supported. The outcome
will be commercial SOEs financial discipline and profitability, public service delivery, and reduction
in the government fiscal footprint improved. The indicative outputs are: (i) implementation of the
SOE law and policy improved (output 1 ); (ii) operationalization of the CMU strengthened (output
2); and (iii) SOE transformation accelerated (output 3).

21. RBL program coverage will be nationwide and will be implemented over a 4-year period.
A list of indicative disbursement-linked indicators are shown in Table 2.

Table 2: lndicative Disbursement-Linked lndicators"

Outcome: Commerclal SOES dlsclpline and protitablllty, public servlce and
ln the
DLI: Direct government support to SOEs in the form of subsidies, loans, and equity investments reduced
from 2.01o of GDP to xx% of GDP December 2029.
Output 'l: lmplementatlon o, tho SOE law and Dollcv improved.
DLI: All 88 commercial SOEs adopt gender-and climate-responsive BPs and publish SCI by December
2029 (at least xx% of BPs include detailed gender and climate responsive policies and activities).
DLI: Five largest commercial SOEs adopt audited annual reports in accordance with IFRS by December
2025.
Output 2: Operatlonallzatlon of the CMU strenqthened
DLI: Adoption of off{he-shelf or customized electronic database for CMU that is fully interoperable with
the information technology and management information systems in LMs and SOEs by December 2027.
DLI: CMU supports publication of aggregate annual reports on _
commercial SOEs in accordance with
OECD uidelines June 2O?5.
Output 3: SOE transformation accelerated
DLI: CCSOE approves targeted reform and restructuring for NHA and _
SOEs based on adoption of
approved gender-and climate-responsive BPs by December 2025.
DLI: CCSOE approves highJevel transformalion of _
SOEs that could result in a material private sector
investment approved by December 2028 (of which xx% must be businesses that have published gender
Dolicies).
BP = business plan, CCSOE = Cabinet Committea on State-Owned Enterprises, CMU = Cenkal Monitoring Unit, DLI
= disbursementlinked indicator, GDP = gross domestic product, IFRS = lntemational Financial Reporting Standards,
LM = Lino Ministry, NHA = National Highway Authority, OECO = Organization for Emnomic Cooperation and
Development, SOE = state-owned enlerpris6.
a
A mor€ detailed but not exhauslive list of potential DLls is attached as App€ndix 2.
Sources: Asian Developm€nt Bank and FD staff estimates.

F. lndicative Expenditure Framework and Financing Plan

22. The RBL program expenditures are estimated to be an average of $6.8 billion from
FY2025 to FY2029, among which the ADB loan will contribute $400 million (5.9%) through ADB's
ordinary capital resources (regular loan). Advance financing and/or financing for prior results (in
total up to 25o/o ol loan amount) may be provided subject to the outcome of due diligence.
Cofinancing will be confirmed through ongoing discussions with the developing partners.
 11

a Gapaclty Development

23. Capacity building and development will be provided under the RBL program to support
FD, CMU, LMs, and commercial SOEs to, amongst other things, produce and adopt BPs and SCl,
adopt audited annual reports in accordance with IFRS, implement PSO framework, ensure SOE
boards comprise majority of independent directors selected on basis of bestskilled and in
accordance with the procedure in the SOE Act, help the CMU develop an electronic database
that is user friendly and results in machine-readable data that will capture and analyse SOE
financial and operational performance, identify additional loss-making SOEs for targeted reform
and restructuring, and so on.

b. TechnicalAssistance

24. Piggy-backed TA will support the implementation of the RBL program. The TA is estimated
to cost $600,000 and will be financed on a grant basis by ADB's Technical Assistance Special
Fund (TASF). Details of the scope, key outputs, and key activities of the TA will be presented in
the TA report that is submitted as part of concept design package scheduled for approval in
August 2024. Government counterpart support of $7,000 equivalent will be provided through in-
kind contributions, such as counterpart staff, office space, data sources, and logistical support.

c lndicative !mplementation Arrangements

25. The executing and implementing agency will be the FD. Other implementing agencies
could potentially include MOE, Petroleum Division, Power Division, HESCO, PESCO, SEPCO,
and HAZECO, MOl, NHA, MOR, and PR. A program steering committee will be established and
chaired by FD and comprise representatives of implementing agencies. Quarterly meetings will
be arranged. Pakistan lnstitute of Corporate Governance, SOE boards, and civil society
organizations will be identified and invited to join stakeholder engagemenl workshops and other
key knowledge events.

G. AssessmentsExpected

26. The program processing will conduct: (i) program technical assessments for soundness,
(ii) program system assessments on financial management, procurement, and safeguards; (iii)
results framework assessment; (iv) monitoring and evaluation system assessment; (v) integrity
and corruption risk assessment, and (vi) integrated risk assessment. A program action plan will
be developed based on the results ofthe assessments and analyses for necessary enhancement.

H. Processing Plan

a. Risk Categorization for Processing

27. Risk and safeguards categorizatlon. The proposed program is categorized as complex
as the loan amount is above $200 million. Safeguards categorization is expected to be C for
environment, C for involuntary resettlement, and C for indigenous people.

28. Gender categorization, ln addition, it is proposed that the RBL program is classifled
Gender Equity (GEN) since it will contain impactful gender empowerment features across the
12

three outputs (please refer to Table 2). The project team is working with ADB's Gender Equality
Division (CCGE) to identify gender responslve entry points including enhancing working
conditions, fostering women's leadership, advocating for male champion of change, improving
workplace gender equality policies, and promoting gender responsive BPs. These initiatives
should be informed by a census of women's positions within select SOEs and supplemented by
consultations with SOE boards and management, female staff, and human resource management
departments to understand challenges and identifo potential reforms.

29. Climate change. DLls will be developed to help achieve the government's mitigation and
adaptation objectives and the climate finance contributions for mitigation and adaptation
calculated (please refer to Table 2). Examples of mitigation and adaptation actions that could be
supported under the proposed program include green business plans, sustainable procurement,
and green investments. The proposed program will also apply the Joint Multilateral Development
Banks Methodological Principles for Assessment of Paris Agreement Alignment to ensure
alignment with the goals of the Paris Agreement.

b. Resource Requirements

30. A total of 30 person-months of staff resources will be required for program processing. lt
is estimated that 52 person-months of consultants will be provided by the proposed TA to ensure
adequate support is provided to FD, LMs, and SOEs.

c. Processing Schedule

31 . The processing schedule is summarized in Table 3.

Table 3: Tentative Processi Schedule

Date
Concept paper approval August 2024
TRTA lnception Mission September 2024
lnformal Board Seminar Oclober 2024
Fact Finding Mission November 2024
Resolution Meeting Oecembet 2024
Loan Negotiations January 2025
Board Consideration March 2025
Loan Signinq Agnl2025
Source: Asian Development Bank.
ADB
Conclusion and Next Steps

32. The Mission gratefully acknowledges the courtesies extended lo it by the Government of
Pakistan and its implementing agencies. The Mission requests the EAD to conflrm the aide
memoire by Friday 14 June 2024.

Signed, lslamabad, lslamic Republic of Pakistan, 3 June 2024,

W
Laisiasa Tora
Principal Public Management Specialist
Sectors Group - Public Sector Management and Governance
Asian Development Bank

Appendices:
Appendix 1. List of Persons Met
Appendix 2. Draft List of Potential Disbursement-Linked lndicators

ASIAN DEVELOPMENT SANX

6 ADB AwnuG, Mandaluyon8City
r55o Metro Manil., Phllippines
fel +6r z 612 4444
Fa\ +63 z 6j5 214
14 Appendix I

List of Key Persons Met

Ministry of Finance
'1. lmdad Ullah Bosal, Secretary
2. Qumar Sanrar Abbasi, Additional Finance Secretary (CF)
3. Dr. lmran Ullah Khan, Sr. Joint Secretary (CF)
4. Ahmed Taimoor, Joint Secretary (lF)
5. Nadeem Ahsan, Joint Secretary (EF)
6. Rana Obaid Ullah, Joint Secretary (Budget)
7. Fahad Ahmed, Deputy Secretary (Budget)
8. Zakirah Akram, Deputy Secretary (CF)
9. Sarnaila Sharif, Section Officer (CF)

Central Monitoring Unit

10. Majid Soofi, Director General
11 . Dr. Qaiser Rafique, Unit Head
12. Dr. Khurram Ejaz, Unit Head

Securities & Exchange Gommission of Pakistan

13. Akif Saeed, Chairman
14. Musarat Jabeen, Executive Director
15. Mubashar Sadozai, Executive Director
16. Mateen Ullah Khan, Director
'17. Zohra Sarwar, Joint Director
18. Fozia Perveen, Joint Director

Ministry of Railways and Related SOEs

19. Shoaib Adil, Additional Secretary, Ministry of Railways
20. Abdul Malik, Secretary Railway Board, Ministry of Railways
21. Sheikh Sarfraz Ahmed, Advisor Legislation, Ministry of Railways
22. Syed lmtiaz Hussain, Director, Ministry of Railways
23. Muhammad Yousuf lqbal, Dy Director, Ministry of Railways
24. Waqar Ahmed, MD, Pakistan Railways Advisory & Consultancy
25. Sufiyan Sarfraz Dogar, CEO, Pakistan Railways Freight Company
26. Arshad Salam Khattak, CEO, Railway Real Estate Development & Marketing Company
27. Sayed Najam Saeed, CEO, RAILCOP
Ministry of lndustries and Production and Related SOEs
28. Asad lslam Mahni, Additional Secretary, Ministry of lndustries & Production
29. Syed Sibt-e-Abbas, Joint Secretary, Ministry of lndustries & Production
30. Kashif Muhammad Ali, Deputy Secretary, Ministry of lndustries & Production
31 . Beenish Noor, Deputy Secretary, Ministry of lndustries & Production
32. Engr Muhammad Shoaib, Section Officer, Ministry of lndushies & Production
33. Pirah Aftab, Section Officer, Ministry of lndustries & Production
34. Waheed Ahmed, CFO, National Productivig Organization
35. Wasih Ahmed, cM (lL), National Productivity Organization
36. Socrat Aman Rana, CEO, SME Development Authority
37. Zeenat Lakho, CFO & Company Secretary, Pakistan Gems and Jewelry Development
Company
38. Saifuddin Junejo, Chairman, Export Processing Zone Authority
 Appendix 1 15

39. Raazia Shakir, General Manager, Engineering Development Board

40. Rizwan Ahmed Bhatti, CEO, Pakistan lndustrial Development Corporation
41. Sadia Masood, Director (TUG), Technology Upgradation and Skill Development Co
42. Anwar Aziz, CFO & Company Secretary, Pakistan Engineering Company
43. Syed Sib-e-Abbas, CEO, State Engineering Corporalion
44. Faisal Sultan, Company Secretary, National Fertilizer Corporation
45. Amin Hussain, GM (P&A), National Fertilizer Corporation
46. Muhammad Ramzan, Board Member, Utility Stores Corporation
47. Raja Ali Saleem, Board Member, Utility Stores Corporation
48. M Ali Ammer, MD, Utility Stores Corporation
49. Rasool Bux, Company Secretary, Utility Stores Corporation
50. M Asghar Shaheen, Corporate Secretary, Pakistan Steel Mills

Power Division and Related SOES

51. Laeeq Ahmed, Joint Secretary, Power Division
52. Shafqat Abbas, Deputy Secretary, Power Division
53. Syed Tauqeer Hussain, Deputy Secretary, Power Division
54. Sahhid Haider, CEO, Lahore Electric Supply Company
55. Bushra lmran, CFO, Lahore Electric Supply Company
56. Huma Cheema, HR Director, Lahore Electric Supply Company
57. Muhammad Yasin Badar, Chief Law Officer, Lahore Electric Supply Company
58. Noman Ahsan, Manager HR, Lahore Electric Supply Company
59. Muhammad Jibreel, Senior Engineer Procurement, Peshawar Electric Supply Company
60. Faiz Ullah Khan, Board Member (Chairman), Peshawar Electric Supply Company
.
6'l Farhan Zaffar Jhagra, Board Member, Peshawar Electric Supply Company
62. Muhammad Aamer, CEO, Faisalabad Electric Supply Company
63. Nazir Ahmad, CFO, Faisalabad Electric Supply Company
64. Abid Rashid, Company Secretary, Faisalabad Electric Supply Company
65. Farrukh Aftab, DG Law & HR, Faisalabad Electric Supply Company
66. Aamir Mahboob Ullah, GM Technical, Faisalabad Electric Supply Company
67. Unser Mahmood, Chief Legal Ofiicer, Gujranwala Electric Supply Company
68. Uzman Ali, Company Secretary, Gujranwala Electric Supply Company
69. lrfan Rafique, DG MIRAD, Gujranwala Electric Supply Company
70. Rana Farhan Moazzam,lndependent Board Member, Gujranwala Electric Supply Company
71. Abid Yousuf Bachani, lndependent Board Member, Hyderabad Electric Supply Company
72. Muhab Ali Khichi, lndependent Board Member, Hyderabad Electric Supply Company
73. Abdul Majid Jatoi, DG MIRAD, Hyderabad Electric Supply Company
74. Manjhee Khan, Manager Legal, Hyderabad Electric Supply Company
75. Khalid Mehmood, Chief Engineer, Multan Electric Supply Company
76. Muhammad Sohail Ahmed, DG MIRAD, Multan Electric Supply Company
77. Agha Lax Bux, Board Member (Chairman), Sukkur Electric Supply Company
78. Muzaffar Nizam, DG HR, Sukkur Electric Supply Company
79. lmdad All, FD, Sukkur Electric Supply Company
80. Ehsanullah Khan, Chief Engineer, Tribal Areas Electric Supply Company
Petroleum Division and Related SOEs
81. Muhammad Ramzan Malik, Joint Secretary (Admin), Petroleum Division
82. Falak Sher Virk, Deputy Secretary, Petroleum Division
83. lmtiaz Azam, Section Officer, Petroleum Division
84. Rabbiya Khalid, Section Officer (Corp Affairs), Petroleum Division
85. Azia Shoaib, GM HR, Pakistan Mineral Development Corporation
16 Appendix 'l

86. Representative(s) from Oil & Gas Development Company

87. Representative(s) from Sui Northern Gas Pipeline Company
88. Representative(s) from Pakistan Petroleum Limited
89. Representative(s) from Pakistan LNG Limited

National Highway Authority

90. Asim Ameen, Member Planning
91. lkram Saqlain Haider, Member Aided Projects
92. Nadeem Khattak, Member Engineering Coordination
93. Mansoor Ahmad, Member Administration
94. lftikhar Mehboob, Director PPP Projects
95. Muhammad Waqas Qadir, Dy. Director Budget and Treasury
Pakistan State Oil
96. Syed Muhammad Taha, CEO & MD, Pakistan State Oil
97. Abdus Sami, Chief Supply Chain Officer, Pakistan State Oil
98. Mohsin Ali Mangi, Chief Shategy Officer, Pakistan State Oil
99. Gulzar Khoja, CFO, Pakistan State Oil
',l00, Rashid Umer Siddiqui, Company Secretary, Pakistan State Oil
101 . Asif Baig Mohammed, Board Member, Pakistan State Oil
102. Jamal Mir, Board Member, Pakistan State Oil
'103. Waheed Shaikh, Board Member, Pakistan State Oil
104. Ambreen Ali, DGM (CA), Pakistan State Oit
'105. Syed Saijad, cM Legal, Pakistan State Oil
106. Mir S. K. Talpur, GM Ops, Pakistan State Oil

Sui Southern Gas Company

107. lmran Maniar, CEO, Sui Southern Gas Company
108. Muhammad Saleem, Chief lnternal Auditor, Sui Southern Gas Company
109. Haseeb Shaikh, SGM, Sui Southern Gas Company
110. Shakeel Ahmed, GM (F&A), Sui Southern Gas Company
111. Ghulam Moeen Butt, ASGM (TS), Sui Southern Gas Company
'l12. Amin Rajput, DMD (F&A), Sui Southem Gas Company
113. Jamshaid Nisar, ASGMT, Sui Southern Gas Company
114. Afeef Ahmed, ASGM (R&C), Sui Southern Gas Company
1 't 5. Kamran Nagi, ASGM-D (E&W), Sui Southern Gas Company

116. Madri Siddiqui, GM(l), Sui Southern Gas Company

117 " M. Faisal Khan, GM Legal, Sui Southern Gas Company
1 18. Brig Muhammad Abuzar, DG (SS&CGTO), Sui Southern Gas Company
'l 19. Saeed Rizvi, DMD Ops, Sui Southern Gas
Company
120. Mateen Sadiq, Company Secretary, Sui Southern Gas Company
121. Dr. Shamshad Akhtar, Board Member, Sui Southem Gas Company
122. Raziuddin Monem, Board Member, Sui Southern Gas Company
123. Sohail Javed, Board Member, Sui Southem Gas Company
124. Ayaz Dawood, Board Member, Sui Southern Gas Company
'125. Shahbaz Tahir, Board Member, Sui Southern Gas Company
126. Sohail Razi, Board Member, Sui Southern Gas Company
'127. Shakeel Qadir, Board Member, Sui Southern Gas Company
 Appendix 1 17

Ministry of Maritime Affairs and Related SOEs

128. Saif Ullah Janbaz, Joint Secretary, Ministry of Maritime Affairs,
129. Mashoud Ahmed Jan, GM (F), Karachi Port Trust
'130. Hasan Arif, PM(P), Karachi Port Trust,
131 . Atif lftikhar, PE(E), Karachi Port Trust
'132. Shariq Amin Farooqui, PRO, Karachi Port Trust
133. Syedain Raza, Chairman, Karachi Port Trust
134. Dost Ali Baloch, GM (legal), Karachi Port Trust
135. Faiza Mariam, Assistant Librarian, Karachi Port Trust
136. Mohtashim Shahid, Chief Auditor, Karachi Port Trust
137. Fahad Ali Siddiqui, Dy Secretary, Karachi Port Trust
138. Sandeep Kumar Talib, Chief Accounts Officer, Karachi Port Trust
139. Zaheeruddin Talpur, Director HRM, Port Qasim Authority
140. Jamil Ajmal, Director MA, Port Qasim Authority
141. Tipu Sultan Sheikh, Director Legal, Port Qasim Authority
142. Shabir Anwer Kazi, DG (P&CW), Port Qasim Authority
143. R/Adm Nasir Shah, Chairman, Port Qasim Authority
'144. Shahnawaz Mangrio, Secretary, Port Qasim Authority
145. Farrukh Jamil, DG (Finance), Port Qasim Authority
146. Khurram Mirza, Executive Director, Pakistan National Shipping Company
'147. S. Jarar Haider, CFO, Pakistan National Shipping Company
148. Capt Mustafa Kizilbash, Director Comm, Pakistan National Shipping Company
149. Ahsan Malik, Member Board, Pakistan National Shipping Company
150" Qaiser Hussain, Manager, Pakistan National Shipping Company
151 . Cdre S. M. Babur, Executive Director, Pakistan National Shipping Company
152. Cdre Masood ul Hasan, GM HR, Pakistan National Shipping Company
153. M. Javed Noor, Acting GM (SM), Pakistan National Shipping Company
'154. M. Yaseen Abbasi, GM (PP&C), Pakistan National Shipping Company
155. Cdre Asadullah, GM (Workshop), Pakistan National Shipping Company
156. M. Rizwan Aziz, GM Ops, Pakistan National Shipping Company
157. Capt Asim lqbal, GM Commercial, Pakistan National Shipping Company
158. M. Javaid, Secretary, Pakistan National Shipping Company
159. Zeeshan Taqvi, GM-F, Pakistan National Shipping Company
160. Zafarullah Khan, GM-A, Pakistan National Shipping Company
161. Ali lmran Qadir, GM Procurement, Pakistan National Shipping Company
162. Cdre lrfan Taj, GM Planning, Pakistan National Shipping Company
163. M. Faisal Hadi, ClA, Pakistan National Shipping Company
164. M. Zohaib Zalar, Manager Planning, Pakistan National Shipping Company
'165. Shoias Pervaiz, Manager Finance, Pakistan National Shipping Company
166. lmran Akhtar, Manager HR, Pakistan National Shipping Company
167. Muhammad Farooq, Dy Manager (CPR), Pakistan National Shipping Company
168. Sultan Khan, Dy M (P), Pakistan National Shipping Company
169. Asad Ali, JE (PPR), Pakistan National Shipping Company
170. Muhammad Arif, DM (Procurement), Pakistan National Shipping Company
171 . Jamil Ahmad, Manager (ER), Pakistan National Shipping Company
172. Asadullah Munir, DM (Procurement), Pakistan National Shipping Company
173. Fayyaz Shafi, AM (Procurement), Pakistan National Shipping Company
174. Shoaib Raza, Manager, Pakistan National Shipping Company
'175. Abdul Wahid, Director, Gwadar Port Authority
176. Shabbir Ahmed, DS, Gwadar Port Authority
18 Appendix 1

177. Nisar Ahmed Soomro, GM-F, Korangi Fisheries Harbour Authority

178. Syed Salman Hasan, Dy Director, Korangi Fisheries Harbour Authority

Combined Stakeholder Engagement Workshop on SOE Act and SOE Pollcy

'179. Farhan Ali Mirza, Director, Pakistan Post
180. Sadia Bano, Superintendent, Pakistan Post
181 . Kashif Bava, Deputy Secretary (Org), Ministry of Science & Technology
182. Ashar Mahmood, Section Officer, Ministry of Science & Technology
183. Rehan Saleem, Joint Secretary, Ministry of Defence Production
184. Muhammad Shafi, Ministry of Defence Production
185. Brig Zeshan Haider, Heavy lndustries Taxila, Ministry of Defence Production
186. Javed Akbar, Director, Ministry of Housing & Works
187. Rana Shiraz, Director Finance, Pakistan Housing Authority Foundation
188. Abdul Shiraz, Dy Director, Pakistan Housing Authority Foundation
189. Habib Anwar, Section Officer, Establishment Division
190. Zafar lsmaeel, Section Officer, Establishment Division
191 . Syed Zia ul Hasan, Member, Establishment Division
192. Rai Muhammad Hasan, Section Officer, Cabinet Division
'193. Jawad Ahmed, Principal Staff Officer, Ministry of Law & Justice
194. Sohail Ahmed, Section Officer, Ministry of Communications
'195. Hafeezullah Khan, Section Officer, Mlnistry of Communications
196. Danish Ali, Section Officer, Ministry of Communications
197. Ali Qaim, Section fficer, Ministry of National Food Security & Research
198. Shahid Haroon, CFO/Company Secretary, National Construction Limited
199. Tauqeer Gul, Company Secretary, Fisheries Development Board
200. Khurram Shahzad, Section Officer, Establishment Division
201 . Sandeep Kumar, Company Secretary, Postal Life lnsurance Company
202. Ata Hussain Shah, Sr Manager HR, Postal Life lnsurance Company
203. AVM Muhammad Amir Hayat, CEO, Pakistan lnternational Airlines
204. Amos Nadeem, CFO, Pakistan lnternational Airlines
205. Athar Hussain, Chief HR Officer, Pakistan lntemational Airlines
206. Syed Qamar Maqbool, GM Govt Affairs, Pakistan lnternational Airlines
207. Muhammad lqbal Asif, Joint Secretary, Aviation Division
208. Jarrar Hussain, Company Secretary, Livestock & Dairy Development Board
209. Saleem Khan, Additional Secretary, Ministry of Privatisation
210. lntikhab Alam, Joint Secretary, Ministry of Privatisation
21
,l. lmran Ayub, Controller Admin & Legal Affairs, Pakistan
Television
212. Air Cdre Jawad Ahmed, CFO, Pakistan Aeronautical Complex
213. Capt Shahab Usman, cM (CA), Karachi Shipyard
2'14. M Adil Khan, CFO & Company Secretary, National Radio & Telecommunication Corp
215. Nawazish lgbal, Dy Managing Director, Pak Env Planning & Architectural Consultants

World Bank
216. Akmal Minallah, Senior Financial Management Specialist
217. Aleksandar Kocevski, Senior Operations Officer
218. Hisham Waly, Global Practice Manager, Public Financial Management
219. Till Hartmann, Governance Specialist

lnternational Monetary Fund

220. Jason Weiss, Senior Economist
 Appendix 2 19

Appendix 2

Draft List of Potential SOE Reform Disbursement-Linked lndicators

Actlon Baseline Rallonale Benefit Prior Results Target Date Target Date Target Date Target Date
Valuo Target Datel 2025 2026 20?7 2028
2024
with SOE
I Commercial Business plans lncreased Five largest Further '10 Further 30 Further 40 All commercial
(oLr) SOEs are the primary transparency commercial commercial commercial commercial SOEs adopt
produce and planning and will lead to SOES2 adopt SOEs adopt SOEs adopt SOEs adopt business plan
adopt BPs accountability increased business plan business plan business plan business plan and SCI and
and SCls in document for accountability and SCI and and SCI and and SCI and and SCI and publish SCl.
accordance SOE boards and will result publish SCl.3 publish SCl. publish SCl. publish SCl.
with SOE Act and a primary in changed
and Policy. monitoring behaviour and
document for improved SOE
govemment as performance.
owners.
Statements of
Corporate
lntent are a
primary public
accountability
document.
2 Commercial Audited annual SOE boards Five largest Further 10 Further 30 Further 40 All commercial
(DLr) SOEs adopt accounts are a cannot commercial4 commercial commercial commercial SOEs adopt
audited key compliance undertake their SOEs adopt SOEs adopt SOEs adopt SOES adopt audited annual
annual reports and reporting basic audited annual audited annual audited annual audited annual report in
in accordance document. governance report in report in report in report in accordance
with IFRS and responsibilities accordance accordance with accordance accordance with IFRS and
including all if they do not with IFRS and IFRS and SOE with IFRS and with IFRS and SOE Act and
requirements have curent Act and Policy. Policy.

1
Unlsss otheMise stated, target dala with be Decembsr in each year.
2 Altemate could be 10 largesl loss-making SOES or nominats 10 SOES from material sectors that would include power and gas and transportation, such as PlA,
NHA and Pakislan Railways.
3 Financial year ends 30 June. Business plan must be adopted by 29 Juns and scl pubtished by 29 July.
a Altemate'could be 10 largest loss-making SOES or nominate 'lO SOES from material sectors that would include power and gas and transporlalion, such as PlA,
NHA and Pakistan Railways.
 20 Appendix 2

Actlon Baseline Rationale Benefit Prior Results Target Date Target Date Target Date Target Date
Value Target Datel 2025 2026 2027 2028
2024
under the financial data. SOE Act and SOE Act and SOE Act and
SOE Act and Annual report Policy. Policy. Policy.
Policy with showing
four monlhs progress
from end of against SCI
financial year targets
and publish on enhances
SOE'S accountability.
website within
one month of
adopting the
report.
3 Govemment lnformal and lmproved SOE Government Government and Government Government Historic PSOS
(DLl) and SOEs unfunded PSO financial and and five largest PSOS and 80% of and all structured
implement are major operational commercial commercial remaining remaining through
PSO reason for poor performance SOEs identify SOEs enter in commercial commercial recapitalization
framework SOE and cost PSOS PSO SOES enter in SOES enter in or other
contained in performance by December. agreementss by PSO PSO resulting in all
SOE Act and and June. Any non- agreements. agreements. SOES meeting
Policy. inefficiencies, commercial Any non- Any non- the solvency
and create activity that is not commercial commercial test.
fiscal risk for included in a PSO activity that is activity that is Govemmenl
govemment agreement will not includ€d in not included in publishes a
cease by A PSO a PSO summary
December. agreement will agreement will repod on all
cease by cease by PSO
December. December. agreements
and cost,
identiff the
SOEs and
performance
measures by
December.
4 Establishment Audit lmproved Audit Audit Committee Audit Audit Report of audit
(PAP) of audit committee will linancial Committee established for Committee Committee committee

5 The PSO agreement must include Government Funding sufficient to ensure SOE financial sustainability, and the pSO amount must be fully budgeted.
 Appendix 2 21

Action Basellne Rationale Benefit Prior Results Target Date Target Date Target Date Target Date
Value Target Datel 2025 2026 2027 2028
2024
committees in enhance management established for 50o/o of all established for established for functions
accordance financial and risk five largest commercial 8Oo/o of all 100% of all contained in
with the soE management, identification commercial SOEs by commercial commercial annual reports
Act and Policy compliance, and SOEs by December. SOEs by SOEs by of all
including risk risk management December. December. December and commercial
managemenl identification leading to Report of audit SOEs.
plan. and the quality improved SOE commitlee
of financial performance. functions
reporting and contained in
oversight. SOEs' annual
reports.
5 SOE boards lndependent Strengthened 75Yo of All Commercial All Commercial All Commercial All SOE boards
(PAP) comprise directors 9OVernance commercial SOE boards SOE boards SOE boards comprise a
maiority of selected on the will lead to SOE boards comprise a comprise a comprise a majority of
independent basis they have improved SOE comprise a majority of maiority of majority of independent
directors the skills, performance. maiority of independent independent independent directors.
selected on knowledge, and independent directors. directors. directors.
basis of best- experience to directors by
skilled and in assist the SOE December.
ac@rdance achieve their
with the primary
procedure in objectives will
the SOE Act. improve SOE
performance.
6 Establishing All commercial SOE SOoh of All commercial All commercial All commercial All commercial
(PAP) legislation for SOES should establishes a commercial SOE Statutory SOE Statutory SOE Statutory SOE Statutory
Commercial be subject to robust SOE Statutory corporations' corporations' corporations' corporations
SOE Statutory the reporting framework for corporations' establishing Acts establishing compliant with
establishing
corporation s and all
commercial establishing compliant with Acts compliant Acts compliant SOE Act in all
be amended accountability SOEs. Acts, compliant the SOE Act. with the SOE with the SOE regards,
to be framework in with SOE Act. Act. Act. including the
compliant with the SOE Act All SOEs in adoption of a
SOE Act with including Sovereign business plan,
modifications, provisions Wealth Fund publication of
if necessary, dealing with compliant with the SCI and
provided the governan@ SOE Act. boards
modifications and PSOs. comprise a
 22 Appendix 2

Action Baseline Rationale Benefit Prior Results Target Date Target Date Target Date Target Date
Value Target Oatet 2025 2026 2027 2028'
2024
do not maiority of
undermine lhe independent
obiectives and directors.
principles of
the SOE Act
and SOEs in
Sovereign
Wealth Fund
be subject to
provisions in
SOE Act.
7 Govemment SOE Competitive Govemment Ministry of Ministry of Ministry of Ministry of
(PAP) implements performance neutrality for finalise and Finance / CMU Finance / CMU Finance / CMU Finance / CMU
competitive will be SOEs will formally adopt publish report on publish report publish report publish report
neutrality improved improve SOE the competitive Government on on on
procedure in where SOES performance, neutrality compliance with Government Govemment Govemment
SOE Policy face expand the framework in competitive compliance compliance compliance
and as competition and private sector, SOE Act and neutrality with with with
required by neither benefit and support Policy and framework. competitive competitive competitive
SOE Act. from nor are economic open access neutrality neutrality neutrality
handicapped groMh. charges framewo*. framework. framework.
due solely to approved by
govemment the Regulator.
ownership.
7.1 Power sector Competitive Market moves Regulator Regulator Regulalor Regulator Regulator
(PAP} tully power seclor from single determines determines and determines determines determines
competitive will encourage buyer model to and Government and and and
private sector a competitive Govemment notifies UoSC to Government Govemment Govemment
investments model, notifies UoSC encourage notilies UoSC notifies UoSC notifies UoSC
and lead to lowering fiscal to encourage competition. to encourage to encourage to encourage
economic risk. competition. competition. competition. competition.
growth.
7.2 Use of UoSC To promote Lower tariff for Lower tariff for Lower tariff for Lower tariff for Lower tariff for Lower tariff for
(DLr) does not competition, consumers and consumers and consumers and consumers consumers crnsumers and
include the thus rewarding greater options greater options greater options and greater and greater greater options
national efficiency and for industrial for industrial for industrial options for options for for industrial
averaqe consumers consumers consumers consumers
 Appendix 2 23

Action Bas6line Rationale Benefit Prior Results Target Date Target Date Target Date Target Date
Value Target Dater 2025 2026 2027 2028
2024
system loss, punishing industrial industrial
but loss inefticiency consumers consumers
allowance
based on best
practice

Output 2: Operationalization of Central Monitoring Unlt (CMU)

8 Establishment lmproved SOE lmproved All sector TBC TBC TBC Govemmenl
(oLt) of CMU with ownership financial and specialists I provide all
sufficient staff monitoring operational analysts required
and resources performance of appointed. infrastructure
SOES, reduced for smooth
flscal risks and functioning of
improve the unit.
dividends
8.1 Develop an Efficient, Data capture Diagnostic Full Launch of Customized At least 50% of
(DLD electronic secure, and enabling assessment of operationalization customized CMU commercial
database, that timely data robust, CMU's of hybrid MS CMU electronic SOEs achieve
is user friendly capture is effective, and management Excel and Power electronic database fully ISO 3700 (or
and results in critical to timely analysis information Bl electronic database. interoperable equivalent)
machine- enable CMU to is foundational system and database. CMU produces with MIS/IT govemance
readable data, undertake its for effective information reports systems in certification
to capture and statutory SOE technology required under relevant Line
analyse SOE functions as ownership arch itectu re s.31(3). Ministries and
financial and required by the monitoring and completed, and SOEs.
operational SOE Act. reporting. lt will implementation
performance support roadmap
and SCls, transparency, approved by
business accountability Ministry ot
plans, hatf- and improve Finance.
yearly and decision-
annual reports making.
as required by
s.31(1) SOE
Act.
 24 Appendix 2

Action Baseline Rationale Benefit Prior Results Target Date Target Date Target Date Target Date
Value Target Dater 2025 2026 2027 2024
2024
9 Govemment, Comprehensive Greater Government Government Government Govemment Govemment
(PAP} through reporting will transparency publishes publishes publishes publishes publishes
Central enhance will assist SOE aggregate aggregate report aggregate aggregate aggregate
Monitoring accountability performance report on all on all Federal report on all report on all report on all
Unit, publish and management, Federal SOES SOE in Federal SOE in Federal SOE in Federal SOE in
an aggregate transparency. accountability in accordance accordance with accordance accordance accordance
report on all and improve with OECD OECD with OECD with oECD with OECD
SOEs, public guidelines. guidelines. guidelines. guidelines. guidelines.
commercial awareness.
and non-
commercial, in
accordance
with OECD
guidelines on
good practice
aggregate
reporting for
SOEs
containing
SOE accounts
no more than
six months
old.
10 Central SOE Act and An agreed Procedural Procedural Procedural Procedural Procedural
(PAP} monitoring Policy establish process on agreement in agreement in agreementagreemenl in
in agreement in
unit and line role and how the line place between place between place between place between reviewed and
ministries responsibilities ministries and CMU and line CMU and line CMU and line CMu and line report on
agree pro@ss for line CMU willjointly ministries for ministries for 10 ministries for ministries for implementation
for ministries and undertake their five largest commercial 30 commercial 40 commercial submitted to
cooperation CMU that SOE commercial SOES by SOEs by SOES by CCSOE by
and mutual require ownership SOEs by December. December. December. December.
support in cooperalion monitoring and December.
areas such as and reporting
data coordination. functions and
gathering, share datia will
business plan enhance
and SCI effective SOE
 Appendix 2 25

Action Baseline Rationale Benefit Prior Results Target Date Target Date Target Date Target Date
Value Target Dater 2025 2026 2027 2028
2024
development, monitoring and
SOE director reporting.
training and Rules under
appointm6nts section
etc. Rules 34(2Xa) and
under Section (b) made by
34(2)(a) and third quarter
(b) made as 2024.
required.

Output 3: SOE transfonnatlon

11 Line ministries Categorisation Assessment of Categorisation Reform plan Reform plan Reform plan Reform plan
(PAP) complete and reform plan status of soEs and reform progress report progress report progress report progress report
categorisation will form basis will inform plan submitted to submitted to submitted to submitted to
and reform of SOE good decision- completed, and CCSOE and CCSOE and CCSOE and CCSOE and
plan for SOES transformation making. reporl and Federal Federal Federal Federal
operating in program. implementation Govemment with Government Government Govemmenl
their roadmap progress against with progress with progress with progress
economic submitted to milestones. against against against
sector as CCSOE and milestones. milestones. milestones.
specified in Federal
paragraphs 1 1 Govemment.
and 12 of the
SOE Policy.
12 Five largest DISCO relaled Full All PSOS PSO agreement PSO PSO PSO
(DLD DISCOS PSOs are a implementation identified and signed and agreement agreemenl agreement
complete significant Of PSO costed. PSO implemented with signed and signed and signed and
identification burden on their framework will implementation five largest implemented implemented implemented
and costing of financial and support strategy commercial with all with all wilh all
PSOs, operational improved SOE agreed with SOES and commercial commercial commercial
outlining performance financial line ministry agreement SOES and SOES and SOEs and
financial and, if not performance and approved reached to deal agreement agreement agreement
impact and addressed, will and by Federal with historic reached to reached to reached to deal
strategies for create oPerational Government. unfunded PSOs. deal with deal with with historic
implementing significant fiscal efficiency. historic historic unfunded
burden. PSOs.
 26 Appendix 2

Action Baseline Rationale Benefit Prlor Results Target Date Target Date Target Date Target Dat6
Value Targdt Oatel . 2025. 2026 2027 : 2028
2021 . .
PSO unfunded unfunded
framework PSOs. PSOs.
't3 NHA, and fivo Focus on Reduce fiscal NHA and tive NHA reformed by Two priority Two priority Two priority
(oLr) largest loss- larg€st loss- bu rden, SOEs legal s€paration SOEs SOEs SOEs
making SOE making SOES improve identified for of regulatory and reformed and reformed and r€formed and
identified by to reduce fiscal operations and targeted reform commercial restructured, restructured, restructured,
CCSOE for burden and service quality. and functions, and and progress and progress and progress
targeted provide reform restructuring restructured, and submitted to submitted to submitted to
reform and case study for program and progress report CCSOE. CCSOE. CCSOE.
restructuring benefit of other highJevel submitted to
program, SOEs. reform CCSOE.
contingent program,
upon based on
provision of adopted
business business
plans for plans, and
identification reform
of key reform approved by
areas, CCSOE with
Govemment milestones.
costs, and
potential OLls
(SOE for
reforms need
to be
identified).

14 Five profitable Support Private sector Five SOEs Transformation Transformation Transformation Transformation
(DLl) commercial transformation investment to identilied and plan for one SOE plan for two plan for two plan for two
SOEs of SOES that support soE high-level implemented and additional additional SOE
identified for have potential transformation, transformation progress report SOES SOES implemented
transformation for private economic that could against implemented implemented and progress
that have sector growth and result in a milestones and progress and progress report against
potential for materia16 submitted to report aqainst reDorl aqainst milestones

6 Material in size and / or economic impact

 Appendix 2 27

Action Baseline Rational6 Benefit Prior Results Target Date Target Date Target Date Target Date
value Target Datei 2025 2026 2027 2028
2024
material inv€stment green private sector CCoSOE. milestones milestones submitted to
private collaboration. investments investment CCOSOE report submitted to submitted to CCSOE.
investment I plan approved progress & ccsoE. CCSOE. CCSOE report
collaboration by CCSOE potential impact CCSOE report CCSOE repo( progress &
with particular with through public progress & progress & potential
focus on milestones- report or part of potential potential impact through
green annual aggregate impact through impact through public report or
investments. SOE report. public report or public report or part of annual
part of annual part of annual aggregate
aggregate aggregate SOE report.
SOE report. SOE report.
Bl = business interface, BP = business plan, CCSOE = Cabinet Committee on State-Owned Enterprises, CMU = Central Monitoring U nit, DLI = disbursement-linked indicator, DISCO

system, NHA = National Highway Authority, SOE = stats-owned enterprise, OECD = Organization for Emnomic Cooperation and Development, PAP = Program Action Plan, RBL =
results-based loan, PSO = public service obligations, SCI = slalement of corporate intent, UoSC = Use of System charges
Source: Asian Development Bank, Finance Oivision.