ISLAMABAD: The Cabinet Committee on State-Owned Enterprises has approved the dissolution of the boards of nine government-run power distribution companies. This decision, led by Finance Minister Muhammad Aurangzeb, is set to be ratified by the Cabinet, after which a formal notification will be issued.
The approval followed recommendations from the Board Nominations Committee, chaired by the Federal Minister for Power. New boards are to be formed for nine of the eleven state-owned power companies, specifically for Lahore Electric Supply Company (LESCO), Faisalabad Electric Supply Company (FESCO), Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), and Islamabad Electric Supply Company (ISECO).
Additionally, new boards will be established for Peshawar Electric Supply Company (PESCO), Quetta Electric Supply Company (QESCO), Tribal Areas Electric Supply Company (TESCO), and Hyderabad Electric Supply Company (HESCO). However, Prime Minister Shehbaz Sharif has halted the reconstitution of boards for Sukkur Electric Power Company (SEPCO) and HESCO.
Recent amendments to the State-Owned Enterprises Act 2023, including a new ordinance, facilitate the removal of board members of state-owned enterprises, addressing legal hurdles in dissolving these boards. Government sources cited the poor performance of the independent directors in these power companies as the reason for their replacement. The government plans to appoint professionals to improve the management and efficiency of these power distribution companies.
The restructuring aims to enhance the performance and accountability of these state-owned enterprises, ensuring better service delivery to consumers. The federal government is taking these steps in response to longstanding issues of inefficiency and mismanagement in the power distribution sector.
By appointing new, professionally qualified boards, the government hopes to bring about significant improvements in the operations and financial health of these critical infrastructure companies.
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