Federal Law Minister Calls For Amendments for Better Management of Public Sector Companies

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A meeting was held between the Federal Ministers for Law and Justice Barrister Dr. Muhammad Farogh Naseem and Finance Minister Mr. Asad Umar for devising a mechanism for control of Public Sector Enterprises (PSEs) on Friday at the Law Ministry.
The Federal Minister for Law and Justice said there are two types of Public Sector Companies in Pakistan i.e. Incorporated Companies, under the companies laws of Pakistan and Statutory Corporations which are created through statutes.
Currently, all the PSEs are under administrative control of the Federal Ministries/Departments. For effective management and control of PSEs, a holding company may be incorporated. The Law Minister said a holding company shall be empowered to nominate directors of PSEs on the Board by Amendment in Articles of Association.
He was also of the opinion that the statutory provisions in case of the Statutory Corporations may be amended so that the newly created Holding Company may acquire management and control of the corporation. The proposed amendments in the statutes must also expressly include the power to appoint directors and other officers in Statutory Corporations.
On the appointment of Chief Executives and Directors, the Federal Law Minister was of the view that in Public Sector Companies, both must be appointed through an open competitive process via public advertisement.
Finance Minister, Mr. Asad Umar appreciated the suggestions and proposed that they may be moved before the cabinet for approval.
Parliamentary Secretary for Law and Justice, Ms. Maleeka Bukhari Chairman SECP, Mr. Tahir Mehmood and Raja Naeem Akbar, a consultant of Law Ministry were also present during the meeting.

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