ISLAMABAD: The Cabinet Committee on State-Owned Enterprises has given approval to dissolve the boards of nine government-run power distribution companies on Friday.
The meeting, chaired by Finance Minister Muhammad Aurangzeb, endorsed the recommendation from the Board Nominations Committee, led by the Federal Minister for Power. Following the Cabinet’s ratification, a formal notification for the dissolution of these boards is expected.
New boards will be established for nine out of eleven state-owned power companies, including LESCO, FESCO, MEPCO, GEPCO, and ISECO. Additionally, boards will be formed for PESCO, QESCO, TESCO, and HESCO, as disclosed by government sources.
Notably, Prime Minister Shehbaz Sharif intervened to pause the reconstitution of the boards for SEPCO and HESCO previously. Recent amendments to the State-Owned Enterprises Act 2023 have facilitated these changes, addressing legal complexities in board dissolution, according to sources.
Citing dissatisfaction with the performance of independent directors in the power companies, the government has decided to replace them with professionally appointed directors.
Overall, these steps aim to enhance governance and operational effectiveness within the state-owned power distribution sector.
