Sovereign Wealth Fund in Limbo: Committee Seeks Clarity Amid Operationalization Delays

Islamabad: The Standing Committee on Finance and Revenue expresses concerns over the vagueness, un-clarity and Non-Operationalization of the Sovereign Wealth Fund-

The Committee recommended that the entities that stand transferred to the SWF may be clarified to maintain the previous status-quo, chain of command and reporting line until the decision of operationalization or the abolishment of fund is finalized.

6th meeting of the Standing Committee on Finance and Revenue was held today, in the Parliament House, Islamabad, under the Chairmanship of Hon. Syed Naveed Qamar, MNA/Chairman

The Committee was briefed on Sovereign Wealth Fund; Companies, Marketing & Sale Plan, Status & Reporting System of the Companies including the chain of command, compliance with State-Owned Enterprises (Governance & Operation) Act, 2023. The Special Secretary Finance Informed the Committee that OGDCL, GHPL, PPL, NBP MPCL, PDFL, NJHPL are included in the Sovereign Wealth Fund. The Special Secretary informed the Committee that a Consultant has been hired by the Government for advice on operationalization and devising institutional frame-work of the Fund. She anticipated a clearer position regarding the PSW Fund’s continuity within the next four months.

The Hon. Chairman questioned about objectives of the creation of Pakistan Sovereign Wealth Fund (PSWF), and the Minister of State for Finance and Revenue responded that there are various provisions of the law enacted by the previous Government that still remain unclear of which the Government is cognizant and working on it.

Chairman of the Committee, along with members, engaged in an in-depth discussion on the Act’s objectives and current status. During the meeting, concerns were raised regarding the clarity of several provisions within the enacted law, which have contributed to delays in the operationalization of the Fund. The Minister of State acknowledged that the lack of clarity is a significant barrier, preventing the Fund from being fully operationalized into an institutional framework. Furthermore, entities transferred to the Fund are currently required to maintain their previous status-quo, including their chain of command and reporting lines.

The Chairman expressed concern over the disruption caused by the Act, observing that companies affected have ceased reporting through their established channels. The Chair directed that clear written guidance be issued to address these reporting issues and re-establish normal operations. Committee Members also expressed reservations about the generalization in the drafting of the law, which they believe undermines its effectiveness. In response, the department revealed that a consultant has been engaged to address these drafting issues.

The Committee recommended that the entities that stand transferred to the SWF may be clarified to maintain the previous status-quo, chain of command and reporting line until the decision of operationalization or the abolishment of funds is finalized.

The President National Bank of Pakistan (NBP) briefed the committee on the working and structure of NBP.

The meeting was attended by Mr. Omar Ayub Khan, Mr. Bilal Azhar Kayani, Rana Iradat Sharif Khan, Syed Sami Ul Hassan Gilani, Ms. Zeb Jaffar, Mr. Kesoo Mal Kheal Das, Dr. Mirza Ikhtiar Baig, Dr. Nafisa Shah (ON ZOOM), Mr. Arshad Abdullah Vohra (ON ZOOM), Mr. Muhammad Mobeen Arif (ON ZOOM), Mr. Usama Ahmed Mela (ON ZOOM), Mr. Muhammad Ali Sarfraz, and Ms. Shahida Begum, MNAs. The meeting was also attended by Ali Pervaiz Malik, the State Minister for Finance, MS Rubina Khalid, Chairperson BISP, Special Secretary Finance, President NBP, Chairman SECP, and other senior officers from the Ministry.