The key roles of the State Owned Enterprises department are to develop and implement Government SOE policy, strategy and regulations for divestment of approved SOEs, and control financial affairs of SOEs and develop proper procedures for effective and efficient financial management of all Public Enterprises.
The core objectives of the SOE Department are to practice good governance and effective financial and operational oversight over SOEs and to restructure, corporatize and privatize State Owned Enterprises and Properties as stipulated in the Law on State Owned Enterprises and the Procedures for the Liquidation and Corporatization of State Owned Enterprises, with the objective of enhancing private enterprise and creating economic growth, sustainable employment and income for the state.
According to the mandate given to the SOE Department, it has two main tasks:
It should be noted that the SOE Department ceases to have a direct financial management oversight role of State Owned Enterprises once these are corporatized and thus regulated by the Company Law.
The structure of the State Owned Enterprise Department accommodates the two key tasks financial oversight and privatization as well as coordination..Read more
The Government of Afghanistan seeks to promote the private sector as the engine of economic growth and the key to Afghanistan’s long-term development and poverty reduction. Furthermore the Government is committed to expanding the private sector through the efficient and rapid transfer of State-Owned assets into private ownership. Such transfers shall take place in an open, fair, and transparent manner with the objectives of maximizing sales revenues balanced against employment preservation and creation and encouragement of investments and technological development.
The Ministry of Finance has assumed the responsibilities for preparing proposal of the economic restructuring and divestiture of State-Owned assets. As part of this process an extensive review of the operations and assets of the State-Owned Enterprises, was completed in December 2004.
Enterprises have been classified into the following two categories:
Various divestiture options will be assessed for the transfer of State-Owned Enterprises into private ownership, including transfer of assets, sale of shares in corporative Enterprises, long-term leases or management contracts. The divestiture option ultimately selected for each Enterprise will depend on the specific characteristic of that Enterprise.