ISLAMABAD The Federal Cabinet on Wednesday approved the restructuring of major public sector enterprises (PSEs) with a view to bring about financial discipline, revival and good governance. The Cabinet was considering a report of the Cabinet Committee on Restructuring (CCOR) of PSEs that had made recommendations to save these enterprises from bearing losses of billions of rupees. While chairing the meeting of the Cabinet, Prime Minister Syed Yousuf Raza Gilani declared that it was imperative to devise ways and means to stop this ill management. Lack of commitment is resulting in massive losses to public exchequer, the PM said. He added these massive funds could have been used for the development of the country and welfare of the people. He said that the objective of restructuring should be to improve the performance of PSEs and reduce burden on national exchequer. The Cabinet decided to carry out restructuring of the Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM), Pakistan Electric Power Company (PEPCO), Pakistan Railways (PR), National Highway Authority (NHA), Pakistan Agricultural Storage and Services Cooperation (PASSCO), Trading Corporation of Pakistan (TCP) and Utility Stores Corporation (USC). The salient features of the road map are formation of an independent and professional Board of Directors (BOD) by 30th of April 2010 in each PSE; hiring of professional CEOs (nominated by the respective BOD) by 15th June 2010; and approval of restructuring plans of respective PSEs by Cabinet Committee on Restructuring (CCOR) by 31st August 2010. It was also decided that the formation of independent and professional Boards of Directors and appointment of CEOs would be proposed by the ministry concerned in consultation with the CCOR, and the restructuring plan would be presented by each ministry to the Cabinet for decision. The Prime Minister also directed the Cabinet Division to submit a progress report on the implementation status of Cabinet decisions in the next Cabinet meeting. He also directed that recommendations of the 19 sub-committees of the Cabinet on different subjects should also be submitted in the next Cabinet meeting. The Cabinet granted approval, in principle, to start negotiations with the Government of South Korea on MoU on mutual cooperation for environmental education development. The Cabinet also approved signing of MoU on geosciences cooperation between the China Geological Survey and Geological Survey of Pakistan. The Cabinet granted approval, in principle, for initiation of negotiations on the draft agreement on scientific and technological cooperation between the Government of Pakistan and the Government of the United Mexican States. The main objective of the agreement is to initiate, encourage and promote science & technology cooperation in the areas of biotechnology, engineering sciences, material sciences and renewable energy resources. The Cabinet accorded approval to sign MoU on Australia-Pakistan Development Partnership with the Government of Australia. This will broaden the area of development assistance in the areas of health, education, technical training, rural development, agriculture, livestock, economic reform programme, good governance, and reconstruction and rehabilitation of areas affected by terrorism. The signing of MoU will lead to Australias enhanced assistance during the period 2010-13 which would be in the range of 211.2 million Australian dollars. The Cabinet also accorded its approval to start negotiations for signing of MoU with Republic Of Tunisia aiming at close cooperation between Trade Development Authority of Pakistan and Export Promotion Centre of Tunisia.