Govt to restructure, liquidate underperforming state companies
Many government companies are running at a loss and are supported from the state budget to cover general expenses.
Government on Sunday decided to restructure, merge or liquidate state-owned companies that are not performing well after giving them until mid-2025 to improve their performance.
The cabinet decision was announced by minister at the President's Office Abdulla Nazim at a press conference at the President's Office.
He said the government has decided to strengthen the management of underperforming companies this year to improve cash flow.
He noted that the companies have been given a period of up to the first six months of next year to improve their performance.
“In case of restructuring, mergers or liquidation of companies that are not performing well within the period, the process will be initiated,” he said.
In addition, the cabinet has decided to formulate a new set of rules within three months for the establishment of a new company.
Many government companies are running at a loss and are supported from the state budget to cover general expenses. Foreign financial institutions say the increasing role of government companies in the economy has an adverse impact on private businesses.
