Finance Minister Muhammad Aurangzeb chaired the meeting.
According to sources, a notification for the dissolution of these boards will be issued after the Cabinet ratifies the decision. The committee has approved the formation of new boards for nine out of the eleven state-owned power companies.
The Cabinet Committee’s approval came on the recommendation of the Board Nominations Committee, headed by the Federal Minister for Power, sources said. New boards will be formed for LESCO, FESCO, MEPCO, GEPCO, and ISECO, according to these sources.
Additionally, new boards will be established for PESCO, QESCO, TESCO, and HESCO, government sources added.
No plans to hand over DISCOs to any institution ministry
Prime Minister Shehbaz Sharif had previously halted the reconstitution of the boards for SEPCO and HESCO, sources disclosed. Recently, the federal government made amendments to the State-Owned Enterprises Act 2023, sources revealed.
An ordinance has been introduced by the federal government concerning the removal of board members of state-owned enterprises, addressing legal obstacles and complexities in dissolving the boards, sources noted.
Government sources stated that the performance of independent directors in the power companies has been unsatisfactory. Consequently, a decision has been made to replace these independent directors. Professional appointments will be made in the power distribution companies, government sources indicated.