Additional charge of post of NFC CEO granted to bureaucrat on interim basis

Appointment of regular CEO for NFC is not financially viable as it is on path of privatisation with no operational activity

ISLAMABAD  -  Adhocism in the National Fer­tilizer Corporation (NFC) has once again prevailed as after remaining without permanent head for four years, the care­taker government has once more handed over the addi­tional charge of the entity to a bureaucrat on interim basis.

The caretaker cabinet through circulation has ap­proved the handing over of additional charge of NFC to Sarah Aslam, Additional Sec­retary-lI, Industries & Produc­tion Division, official source told The Nation here Monday. Appointment of regular CEO for National Fertilizer Corpo­ration (NFC) is not financially viable as it is on the path of privatization with no opera­tional activity, the source said.

Despite remaining on the privatization list for four years, the successive govern­ments have failed to attract buyers for the entity and it is without permanent CEO since March 2020. In 2020, the then PTI government had de­cided to not hire permanent CEO of the NFC and since then the successive governments of PDM and caretaker have maintained the status quo. 

According to the summary moved to the caretaker cabi­net, National Fertilizer Corpo­ration (NFC) is a Private Limit­ed Company, wholly owned by the government of Pakistan. It is registered under Companies Act, 1913 (now Companies Act 2017) with the Securities and Exchange Commission of Pakistan. As per decision of the Federal Cabinet dated 10 March, 2020, NFC is on priva­tization list. As such no regular Chief Executive Officer (CEO) of the company has been ap­pointed since then. However, additional charge of the post of CEO, NFC was being granted to the officers of this Division. 

Latest assignment in this regard was granted to Asad Rehman Gilani, Additional Secretary (Incharge) of this Division for a period of three months w.e.f, 30-10-2023 with the approval of Federal Cabinet. However, the officer has been transferred from this Division on 26-12-2023. As per Section 187(4) of Com­panies Act, 2017 read with Rule 5(2) of Public Sector Companies (Corporate Gov­ernance), Rules 2013, federal government is competent to nominate CEO of a public sec­tor company for appointment by its Board of Directors. 

Therefore, federal govern­ment’s mandate to nominate CEO in terms of Section 187(4) of Companies Act, 2017 read with Rule 5(2) of Public Sector Companies (Corporate Gover­nance), Rules 2013 is in place. Furthermore, the company being on the path of privatiza­tion with no operational ac­tivity except to act as holding company of National Fertilizer Marketing Limited (NFML), appointment of regular CEO is not financially viable, said the summary. In the light of above, it is proposed that Sarah Aslam, Additional Secretary-lI, Industries & Production Divi­sion may be granted addition­al charge of the post of CEO NFC in addition to her own duties with immediate effect for a period of three months or till the completion of priva­tization process, whichever is earlier. NOC/concurrence of Election Commission of Paki­stan (ECP) for said appoint­ment has been obtained.

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