In response to the nation’s ongoing economic challenges, the Privatization and Corporatization Board (PCB) has issued a directive to state-owned enterprises (SOEs) and their subsidiaries, urging them to implement stringent cost-reduction strategies.
The PCB’s circular emphasizes the necessity of aligning government expenditures with current fiscal realities. Key directives include:
- Travel Restrictions: All non-essential domestic and international travel is to be suspended. Essential trips should prioritize virtual meetings with international clients and suppliers. When travel is unavoidable, employees are instructed to fly economy class and minimize expenses, even if funded by external parties. For domestic travel, the use of ferry services is encouraged where available, and spending on food during atoll visits should be curtailed. Participation in non-essential symposiums and fairs is discouraged.
- Staffing and Compensation: SOEs are advised against hiring additional staff unless absolutely necessary and must adhere to PCB’s established standards for any salary or benefit adjustments. Overtime should be limited to essential situations, and the payment of salaries and benefits in foreign currency is to be discontinued. Outsourcing is discouraged unless critical, and companies are encouraged to reassign idle staff to active projects.
- Operational Efficiencies: The adoption of renewable energy sources is recommended to reduce electricity costs. Companies should digitize transactions to minimize paper usage and reduce expenditures on events. Adherence to PCB guidelines for corporate social responsibility (CSR) initiatives and sponsorships is mandated. Additionally, SOEs are instructed to avoid unapproved expenditures beyond essential items in the annual budget and to actively work on waste reduction.
These measures reflect the PCB’s commitment to fiscal prudence and operational efficiency within state-owned enterprises during this period of economic adjustment.
