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.
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.
