Pakistan to categorize PHA Foundation as essential State-Owned Enterprise

Pakistan's Cabinet Committee on State-Owned Enterprises (CCoSOEs) has approved the categorization of Pakistan Housing Authority–Foundation (PHA-F) as an essential State-Owned Enterprise (SOE).

The approval was given at a meeting of the committee chaired by Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb.

A handout issued by the Ministry of Finance states that the committee considered the proposal presented by the Ministry of Housing & Works and decided to categorize Pakistan Housing Authority–Foundation as essential with further directions to present a revised plan for its restructuring to the committee.

The PHA-F was established under Article 38(d) of the Constitution, which states that the government will provide all basic necessities of life, including shelter, to citizens.

This was formalized through Resolution No.1(1)2000-Works dated 8 March, 2000 and and the PHA-F became a non-profit organization with its own revenue mechanism.

The foundation is registered with the Securities and Exchange Commission of Pakistan under Section 42 of the Companies Act, 2017. It succeeded the Pakistan Housing Authority and operates as an autonomous body of the Ministry of Housing & Works.

PHA-F aims to address homelessness by developing and constructing affordable apartments for low-income groups, including government employees and other designated groups.

PHA-F has undertaken several projects in Islamabad and other cities to construct affordable apartments for federal employees and low-income groups.

SOE categorization

The Pakistan government enacted the State-owned Enterprises (Governance and Operations) Act, 2023, last February to enhance SOE governance and efficiency and issued SOE Policy Guidelines in May this year.

These guidelines require all ministries and divisions to submit recommendations to the Cabinet Committee on State-Owned Enterprises for categorizing SOEs after consulting with their respective boards of directors.

During the 56th Board of Directors meeting held on May 23, the PHA-F's BoD resolved to categorize PHA- F under the third category as per rule 11 (iii) of the State-Owned Enterprises Ownership and Management Policy, 2023.

This category pertains to SOEs that require restructuring or reforming and should be retained in the medium term.

The categorization is essential due to PHA-F's vital role in providing low-cost housing for the shelter-less.