The federal government has approved a major change in the status of the Small and Medium Enterprises Development Authority (SMEDA), removing it from the category of government-owned companies because it operates as a statutory, non-commercial organization.

The decision was taken on Thursday during a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs), chaired by Finance Minister Senator Muhammad Aurangzeb.

The committee also reviewed proposals related to the boards of Pakistan Petroleum Limited (PPL) and Saindak Metals Limited (SML). It reiterated that boards of government-owned companies must comply with the State-Owned Enterprises Act and Policy, including the requirement that each sponsoring ministry or division be represented by only one ex officio director.

In another key decision, the committee postponed a proposal seeking to exempt certain energy-sector government-owned companies from the application of IFRS-9 and IFRS-14 accounting standards. The Petroleum Division was instructed to hold further consultations with the Finance Division and the Law and Justice Division before submitting a revised proposal.

The committee also approved the appointment of an independent director to fill a vacant seat on the board of the Pakistan National Shipping Corporation (PNSC).

The meeting was attended by Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry via video link, along with senior officials from the relevant ministries, divisions, and regulatory bodies.