In a major policy decision, the caretaker government decided on Thursday to make all the new appointments in the government institutions on contract basis, while all the commercial government institutions would be privatised gradually.

The finance ministry issued a notification titled ‘Ownership and Management Policy of Government Institutions 2023, which would apply to all government-owned enterprises (GOEs). It said that a cabinet committee would be established to implement the new policy.

According to the new policy, the government would retain the control of “sensitive institutions of strategic nature” while the commercial enterprises would be privatised. However, it added some institutions would be restructured and their future would be decided soon.

The policy, which would be updated and issued once in every five years, envisaged that financially or operationally failing entities would be declared a sick company and a plan for their rehabilitation and reorganisation would be prepared.