ISLAMABAD: In line with the policy of the government to trim the size of ministries and state-owned entities (SOEs), the Ministry of Housing and Works on Friday constituted a committee for the merger of the Pakistan Housing Authority-Foundation (PHA-F) with the Federal Government Employees Housing Authority (FGEHA).

The Cabinet Committee on State-Owned Enterprises (CCOSOEs), in its meeting on August 12, had classified the PHA-F as an essential SOE, deciding to retain it in the medium term. The CCOSOEs directed the housing ministry to restructure and reform the PHA-F rather than abolish it.

The ministry has formed a committee to explore the possibility of the merger of PHA-F with the FGEHA. The merger committee is headed by the additional secretary housing and works, and includes senior joint secretary administration. housing ministry; joint secretary (Estate) housing ministry; FGEHA director generaland the PHA-F chief executive officer.

The TORS of the committee are to review and compare the existing functions, organisational structure and legal framework of PHA-F and FGEHA to identify overlapping roles and areas for synergy.

The committee will also analyse the financial health, assets, liabilities and operational efficiency of both entities to assess the potential cost savings and benefits from the merger.

In addition, the committee is to examine human resource implications of the merger, including staffing levels, skillsets and potential redundancies and propose a strategy for effective workforce interaction.

The committee will identify the legal and regulatory challenges associated with merging the two entities and develop a plan to address these issues.

The committee will also propose a new name for the entities after the merger. Secretariat support to the merger committee will be given by the PHA-F.

The PHA-F, established in 1999, is a public company registered with the Securities and Exchange Commission of Pakistan (SECP), aiming to reduce the housing shortfall in the country.

PHA-F has built several housing units for the general public and federal government employees in Islamabad and the provincial capitals.

Meanwhile, another key entity under the Ministry of Housing and Works – Pak-PWD – responsible for executing infrastructure development across the country has been axed by the federal cabinet, under the new initiative to reduce the size of the federal government.

Published in Dawn, September 7th, 2024