ISLAMABAD: The Central Monitoring Unit (CMU) of the federal government has deplored disproportionate presence of non-professional and non-independent members in the boards of directors at state-owned entities (SOEs) and an absence of effective audit and monitoring mechanisms in these organisations.

The CMU has suggested adoption of international financial and audit standards to address governance weaknesses and financial losses to the nation.

“Unfortunately, many SOEs still have a disproportionate number of non-independent directors, particularly in critical sectors such as power, infrastructure, and gas,” said the CMU in its analysis of the performance of SOEs for fiscal year 2023-24.

It pointed out that this imbalance was resulting in the dominance of insider perspectives where the management’s influence remains unchecked and........

© Dawn Business