Islamabad: The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, has unanimously passed amendments to the State-Owned Enterprises (Governance and Operations) (Amendment) Ordinance, 2024, introducing significant governance reforms aimed at enhancing the management and oversight of government-owned entities.
According to Senate of Pakistan, the meeting convened at Parliament House was crucial in advancing these legislative changes, which are set to institutionalize the nomination of independent directors, ensure a majority of independent directors on boards, and establish more stringent criteria for the appointment and removal of CEOs and board members.
Participants, including Senator Sherry Rehman and Senator Anusha Rehman Ahmad Khan, discussed the necessity of these amendments to reconstitute the boards of state-owned enterprises (SOEs). The Ministry officials in attendance highlighted that these reforms would align SOEs with broader government reform initiatives, including restructuring and potential privatization efforts.
The legislation also aims to enhance board performance review processes, with a newly constituted board nomination committee responsible for the appointments and assessments of directors. This committee will ensure that nominations and performance evaluations are conducted as per principles of merit, confidentiality, transparency, diversity, and fairness.
Moreover, the amendments will adjust the terms of office for directors, allowing for their removal based on the committee’s recommendations, thereby strengthening board independence and accountability.