Jago Times "English Edition" Best Online Newspaper
ISLAMABAD: In a significant move, the Senate Standing Committee on Finance and Revenue on Wednesday unanimously approved amendments to the State-Owned Enterprises (Governance and Operations) Ordinance 2024, empowering the government to sack existing directors of the boards of public sector entities without completion of their tenures, starting with power companies.
In the proposed changes, future board directors, including government and independent members, would undergo performance evaluations by the board’s nomination committee. Recommendations for removal would be sent to the federal government for approval.
The government has already completed the process for inducting fresh private sector members into most of the power distribution companies.
Senator Saleem Mandviwalla presided over the committee meeting. Sherry Rehman and Anusha Rehman attended it.
The representatives of the Ministry of Finance told the committee that the act would empower the government to nominate independent directors through an institutionalised mechanism and provide for the majority of independent directors, security of tenure, removal criteria, enhanced board independence, and appointment of chief executive officers on the recommendations of the boards.
The official said that there is presently a need to re-constitute the boards of state-owned enterprises to better align them with the reform initiatives agreed to with the International Monetary Fund aimed at restructuring and transformation as well as privatisation of certain entities and other administrative affairs of government-owned institutions.