Islamabad, July 09, 2014 (PPI-OT): A delegation from Pakistan Ordinance Factory (POF) led by Lt. Gen. Mohammad Ahsan Mahmood, Chairman POF called on the Finance Minister Senator Mohammad Ishaq Dar to discuss issues related to the restructuring plan of POF, at the Finance Ministry today.
Lt. Gen. Mohammad Ahsan Mahmood gave a detailed briefing to the Finance Minister on the reform and restructuring of Pakistan Ordinance Factory to bring efficiency and cost effectiveness in its functions with a view to create fiscal space for modernization, diversity and sustenance. The aim of the plan is to manage and administer the affairs of the factories on sound commercial lines.
Chairman POF told the Minister that POF is professional progressive, technologically advancing and internationally competitive organization which meets demands of security forces and earns valuable foreign exchange to make it sustainable in the long run.
Chairman POF informed the Finance Minister that POF management wants to bridge the technological gap by replacing old plants and machines from export earning and commercial sales instead of seeking grants from Government of Pakistan. The management has prepared a three phased plan to change the working model of POF and make it self-sustainable in the next decade.
The Finance Minister said that the Ministry of Finance will support the management of POF to reorient its strategic directions towards self sustainability and financial autonomy. He mentioned that defence economy is a huge sector and Pakistan has great potential in this regard.
Talking about POF, he said that we need to turn it around in order to make it proficient and efficient set up. He also said that private sector participation could be brought in without compromising the basic role of the organization.
The Finance Minister said that the surplus capacity of the factories working under POF could also be utilized to meet the needs of the civilian population. The Finance Minister also said that POF has the potential to meet the future needs of defence/security forces and become a forward looking self sustainable defence organization in ten years time provided it changes its business model on commercial lines.
The Finance Minister directed the management of POF to present complete financial model of its reformation and restructuring plan for consideration by Cabinet Committee on Restructuring. The meeting was also attended by Lt. General (retd) Tanvir Tahir, Secretary Ministry of Defense Production, Dr. Waqar Masood, Finance Secretary, Rana Assad Amin, Advisor to Finance Ministry, Special Assistant to Finance Minister, Mr. Shahid Mahmood and senior officials of the Ministry of Finance.
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