Managing the Public Finances b) Extension of retirement age from 60 to 63. c) Increasing superannuation minimum limit to 30 years of service. d) Federal and provincial governments to establish contributory scheme for all new en­trants in government service. e) Establishment of Pension Funds: The Federal Government has made a small beginning this year with Rs 10 billion contribution to a Pension Fund. 16.6 Improved Management and Privatization of SOEs The burden placed by SOEs on the Federal Budget has become very large due to the following: i) Subsidies to the SOEs, especially in the Power Sector. ii) Cast of servicing guaranteed debt of the SOEs. The cost has approached Rs 1500 billion in 2021-22 and is now even larger than the budget for defence services. There is a strong case for privatization of some of the 85 commercial SOEs, especially the loss-making ones. The following criteria are suggested for Evaluating an SOE for privatization: CRITERIA FOR EVALUATING CASE FOR PRIVATIZATION S.# Score S.# 1. Profit-Making 4. Outstanding Liabilities • If losses 1• If no or small liabilities • If small profits ½• If large liabilities • If large profits 0 5. Performance of Core Social or Economic Functions 2. Monopoly • If functions not performed • If in a competitive market 2• If performed • If a monopoly 0 6. Over employment 3. Regulatory Authority • If large over employment • Yes • No 1• If no or small over 0 employment Score 1 0 3 0 0.5 0 169