PCB sets policy mandating bi-annual SOE budget review

The Privatization and Corporatization Board (PCB) has established a new policy mandating state-owned enterprises (SOEs) to conduct and submit budget process audits on a bi-annual basis.

In a circular shared by the authority on Monday signed by the PCB’s President Hamdhee Ageel, the policy aims at enhancing equal budget assessment of all SOEs.

The policy sets out guidelines for budget research and processes for SOEs prior to making their annual budget forecasts. The policy further provides the procedure for these state corporations to submit their documents to both PCB and the Ministry of Finance for budget review, which include:

• Staff remuneration shall not exceed 30 percent of the revenue
• No budget revisions unless mandatory
• In the event of a budget revision, the reason must be explicitly specified and submitted in written to the Ministry of Finance for approval
• Submission of the budget before the deadline set by the Ministry of Finance
• Conduct and submit a company budget process audit twice every fiscal year

PCB further said that while public corporations have already begun preparing its budget documents for the upcoming year, the new policy’s procedure will be effective on SOEs when they compile budget documents in 2026.

However, from the date of the policy’s publication on the national gazette, all public companies are mandated to publicize, review, make revisions, and all budgetary works through internal functions must comply with the policy.

While PCB acts as the legal watchdog authority of all state-owned enterprises, the Attorney General, Ahmed Usham earlier stated that work is already underway to make legal reforms to improve the operations of these corporations.