Türkiye on Tuesday announced it had completed the initial phase of reforms sought to enhance transparency and accountability at public economic enterprises (PEEs).
Treasury and Finance Minister Mehmet Şimşek said they look to reinforce management boards' professionalism and restructure procurement procedures in alignment with corporate governance principles, focusing on efficiency and profitability.
The current regulations do not fully meet commercial principles, making a new regulation inevitable, Şimşek told Anadolu Agency (AA). The work seeks to ensure that PEEs comply with internationally recognized transparency standards and strengthen their accountability, he added.
"With this reform, we will bring our public economic enterprises closer to global practices," he noted. He stressed that the reforms are at the forefront of public financial management.
The first of the two-part reform tailored for the state-run companies that play a crucial role in the country's economy, particularly in critical sectors such as energy, transportation and agriculture, has been presented to the Economic Coordination Council (EKK), Şimşek said.
The EKK had placed the crypto regulation and reforms related to publicly owned entities on the agenda during its meeting on Monday.
Chaired by Vice President Cevdet Yılmaz, the meeting addressed works on the PEEs reform aimed at supporting the sustainability of public finance, according to a statement.
"It was decided to finalize the efforts carried out under the coordination of the Treasury and to implement them within this year."
Şimşek highlighted the compatibility of reform efforts with savings measures and said there are 19 PEEs under the government's control.
Eight of these are included among the 500 major industrial establishments recently disclosed by the Istanbul Chamber of Industry (ISO).
PEEs constitute 7.4% of Türkiye's gross domestic product (GDP), 24% of public investments and contribute to 2% of public employment, as per the information provided by Şimşek.
The reform measures aim to streamline these entities per global standards and practices.
Şimşek said the enterprises constitute 6.2% of transfers from the central government budget in 2024 and added that the efforts are in line with the government's savings practices.
"We are managing our expenditures efficiently, and our fiscal discipline is strengthened with effectively utilized public resources. Our stance on fiscal discipline is clear. We are reinforcing the harmony between money and fiscal policy," said the minister.
"The steps we have taken and the decisions we have made are reflected in indicators. We have taken necessary measures to prevent permanent disruptions in indicators and will continue to do so."