Cabinet Committee Approves Filling of Vacant Positions in State-Owned Entities

Strategic Insights -

The government has taken a major step forward in governance reforms, approving the filling of vacant positions in state-owned entities, including the appointment of new board members and chairmen. The decision was made by the Cabinet Committee on State-Owned Enterprises (CCoSOEs), chaired by Finance Minister Muhammad Aurangzeb, in a meeting held on Friday. The committee considered and approved summaries presented by various ministries and divisions concerning governance reforms, board appointments, and the categorisation of state-owned enterprises in line with the SOEs (Ownership and Management) Policy, 2023.

Key Takeaways:

  • The Cabinet Committee on State-Owned Enterprises (CCoSOEs) approved the appointment of five new members of the board of Pakistan Television Corporation (PTV), including Yasir Qureshi, Dr Asghar Nadeem Syed, Tasneem Rehman, Khalid Mehmood Khan, and Ishtiaq Baig.
  • The committee also approved the appointment of three new members on the board of Jinnah Medical Complex Company, including former acting foreign minister Jalil Abbas Jilani, Akhtar Hussain Mayo, and Muhammad Ali Tabba.
  • The government has decided to retain the full ownership of Jinnah Medical Complex Company, which will operate in accordance with the provisions of the Companies Act, 2017, the State-Owned Enterprises (Governance and Operations) Act, 2023, and the State-Owned Enterprises (Ownership and Management) Policy, 2023.
  • The company is facing funding constraints and the government is considering using $76 million (Rs21.5 billion) from Panda bonds for funding the Jinnah Medical Complex.
  • The cabinet committee approved the reconstitution of the board of directors of State Life Insurance Corporation of Pakistan (SLIC) with the objective of enhancing corporate governance and ensuring effective management.
  • The committee also approved a summary of the Ministry of Housing and Works regarding the transition plan for the dissolution of National Construction Limited and Pakistan Environmental Planning and Architectural Consultants (Private) Limited (PEPAC).
  • The committee directed that all government nominees on the boards of SOEs must undergo the mandatory corporate governance training within six months before assuming their responsibilities.

Statistics:

  • Rs213 billion: Estimated cost of Jinnah Medical Complex.
  • $76 million (Rs21.5 billion): Expected proceeds from Panda bonds to be used for funding the Jinnah Medical Complex.
  • 1,000: Number of beds in the tertiary care facility to be constructed at Jinnah Medical Complex.
  • 7: Current number of members on the board of PTV.
  • 5: Number of new members appointed to the board of PTV.
  • 3: Number of new members appointed to the board of Jinnah Medical Complex Company.
  • 6 months: Timeframe for government nominees on the boards of SOEs to undergo corporate governance training.

Sources:

  • Ministry of Finance.
  • Cabinet Committee on State-Owned Enterprises (CCoSOEs).
  • Pakistan Television Corporation (PTV).
  • Jinnah Medical Complex Company.
  • State Life Insurance Corporation of Pakistan (SLIC).
  • Ministry of Housing and Works.
  • Ministry of Industries and Production.
  • Petroleum Division.