ISLAMABAD   -   The Senate Standing Committee on Finance and Revenue unanimously approved the amendments to the State-Owned Enterprises (Governance and Operations) (Amendment) Ordinance, 2024 (Ordinance No VII of 2024).

A meeting of the Senate Standing Committee on Finance and Revenue was held on Wednesday under the chairmanship of Senator Saleem Mandviwalla here at the Parliament House Islamabad. The meeting was held to discuss the amendments on the state owned enterprise (Governance and Operations). Senator Sherry Rehman, Senator Anusha Rehman Ahmad khan, official from the ministry and other attach departments were also in attendance.

The ministry apprised the committee that the act will provide institutionalised nomination of independent directors, majority of independent directors, security of tenure, removal criteria, enhanced board independence and appointment of CEOs. The official said that there is presently a need to re-constitute the Board of SOEs to better align them with the reform initiatives aimed at restructuring and transformation as well as privatisation of certain entities and other administrative affairs of government-owned institutions.

The officials said that through the amendments performance of board members of government owned enterprises will be reviewed. It was briefed that a board nomination committee has been constituted which will be responsible for recommending ex-officio position to be held by the relevant division or public sector organisations of the federal government or where necessary a provincial government. Similarly, the committee will be responsible for evaluating the performance of ex-officio and independent directors and recommending the removal of directors to the federal government on the basis of evaluating the performance of such directors.

The amendments in the act, also improvise the procedure adopted by the board nominations for performing its functions, will comply with the principles of merit confidentiality, transparency, diversity and fairness. The act also provides amendments to the term of office of directors that the federal government can remove a director on the recommendation of the board nominations committee.