Cabinet Committee Approves Major Governance Reforms and Board Restructuring for State-Owned Enterprises

The Cabinet Committee on State-Owned Enterprises (CCoSOEs) approved a series of key governance reforms and board appointments at a meeting held Friday under the chairmanship of Federal Finance Minister Senator Muhammad Aurangzeb. The committee reviewed and endorsed several important summaries from various ministries and divisions, all aimed at strengthening the governance, oversight, and management of state-owned enterprises (SOEs) in line with the SOEs (Ownership and Management) Policy, 2023. Among the major decisions, the CCoSOEs approved the appointment of independent directors to the Board of Jinnah Medical Complex & Research Centre (JMC&RC) Company Limited, a move intended to bolster governance and operational oversight at the institution. The committee also gave the green light to the reconstitution of the Board of Directors of the State Life Insurance Corporation of Pakistan (SLIC), as proposed by the Ministry of Commerce. The restructuring is part of a broader strategy to enhance corporate governance and support the ongoing privatization process. A transition plan for the dissolution of National Construction Limited and Pakistan Environmental Planning and Architectural Consultants (Private) Limited (PEPAC) was also approved, providing a framework for the efficient winding-up of both entities and management of their remaining functions. Further, the Ministry of Industries and Production’s proposal to reconstitute the Board of Governors of the Pakistan Institute of Management (PIM), Karachi, was approved to improve professional and managerial training standards. The committee also approved the reconstitution of the Board of the Pakistan Television Corporation (PTVC), with the aim of reinforcing corporate management and promoting greater transparency at the national broadcaster. Two summaries from the Petroleum Division were reviewed and approved. The first involved the nomination of directors and members to fill casual vacancies on the boards of Inter-State Gas Systems Limited (ISGSL), Pakistan State Oil Company Limited (PSOCL), and the constitution of the Board of Directors of Sui Southern Gas Company Limited (SSGCL). The committee directed that all government nominees to SOE boards must complete mandatory corporate governance training within six months before assuming their roles. The second summary addressed the categorization of petroleum sector SOEs as strategic and essential entities. The committee formed a sub-committee, chaired by the Minister for Petroleum and including the Advisor to the Prime Minister on Privatisation and relevant secretaries, to review the proposals and present recommendations. The meeting was attended by Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, as well as federal secretaries and senior officials from the concerned ministries, divisions, and regulatory bodies.