Law minister calls for devising mechanism to control public sector companies

ISLAMABAD: Federal Minister for Law Barrister Dr Muhammad Farogh Naseem and Finance Minister Asad Umar on Friday held a meeting for devising a mechanism for control of Public Sector Enterprises (PSEs).

The federal minister for law and justice said there were two types of public sector companies in Pakistan such as incorporated companies, under the companies’ laws of Pakistan, and statutory corporations, which were 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,” he said during the meeting at the Ministry of Law.

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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 said 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, Farogh said.

On appointment of chief executives and directors, the federal law minister said that in PSEs, both must be appointed through an open competitive process via public advertisement.

Asad Umar appreciated the suggestions and proposed that they may be moved before the cabinet for approval.

Parliamentary Secretary for Law and Justice Maleeka Bukhari, Chairman Securities and Exchange Commission of Pakistan (SECP) Tahir Mehmood and a consultant of the law ministry Raja Naeem Akbar were also present during the meeting.