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State-owned enterprises in Kyrgyzstan still unprofitable

The Prime Minister of Kyrgyzstan Mukhammedkaly Abylgaziev instructed the State Property Management Fund to introduce key performance indicators (KPIs) within a two-week period at a working meeting on the activities of joint-stock companies with state share.

According to the Information Support Department of the Government’s Executive Office, the KPI principle will be introduced in 22 joint-stock companies, where the State Property Management Fund owns over 50 percent of the shares.

The indicators of profitability of assets and capital of OJSCs are unstable and fall annually. There is no systematic development or even a decline, because of which it is impossible to track down the real state of a company and predict its development.

According to Mukhammedkaly Abylgaziev, most of the joint-stock companies with state shares are unprofitable because of the poor management.

«Heads of enterprises in a market economy should work efficiently, in accordance with modern market mechanisms. There should be open and transparent management, open competition of companies with state-owned shares with private ones,» he said.

State companies have an unfair and irrational level of salaries of their managers. «Some state-owned companies have inadequate salaries. Bonuses and premiums should be approved only depending on the effectiveness of management, annual income and real indicators of companies,» said Mukhammedkaly Abylgaziev.