The Ministry of Industries and Production is said to be taking a lead role in decision making of all entities which fall under direct control of Pakistan Industrial Development Corporation (PIDC), headed by Gul Muhammad Rind, sources told Business Recorder here on Sunday.
For this purpose, a meeting of PIDC Board of Directors (BoD) has been convened in Karachi on Monday, December 14. The meeting will be presided over by Industries and Production Minister Manzoor Ahmad Wattoo. When contacted, Additional Secretary/spokesman of the Industries Ministry, Javed Malik, confirmed that the BoD will be meeting to discuss a 13-item agenda.
When asked to comment on speculations that the private sector CEOs of all entities that fall under the administrative control of PIDC are being replaced with government nominees, he brushed aside the reports. He, however, clarified that the Board would discuss an important item regarding reconstitution of the Boards with representatives of PIDC or the Ministry of Industries and Production.
The incumbent PIDC CEO added that since the government is a shareholder in these organisations, it must have representation on the Boards. The opponents of this proposal argue that the Industries Ministry would financially destroy these entities through influence of their public sector nominees.
Replying to another question, Javed said that the Ministry was also minimising the number of unnecessary organisations under its administrative control by merging them into limited bodies, and would reconstitute them. He cited the example of Ghee Corporation of Pakistan and Pakistan Auto Corporation, which is also on the meeting agenda.
"We want to dispose of dying entities as these are not useful for the country," he added. An insider told this scribe that the Ministry wants that all directors should attend Board meetings so as to make the Board meetings more effective and productive. According to officials, in July 2008, the Minister had reduced the number of Board members from 17 to 12, allegedly to facilitate influencing decision-making. This decision led several private sector Board members to resign.
This scribe contacted CEO of a company that falls under the administrative control of PIDC to seek views of his possible replacement, to which he replied that the Board members would resist attempts by the Minister to appoint his own men on the board. PIDC was established in 1952 as a statutory corporation through an Act of Parliament - Act XLV 1950.
In 1985, the status was changed to a private limited company under the Companies Ordinance 1984.
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