ISLAMABAD: The Cabinet Committee on State-Owned Enterprises (CCoSOEs) has approved the Power Division’s proposal for reconstitution of the Board of Directors of some power distribution companies (DISCOs) after the committee was informed that despite repeated indications and advice there has been no visible improvement in the performance of DISCOs.

The Committee approved the proposal of the Power Division for the nomination of independent directors for certain electricity distribution companies for onward submission to the cabinet.

Sources on condition of anonymity said the meeting, which was presided over by Finance Minister Muhammad Aurangzeb, was informed that there is apprehension that these DISCOs may make a loss of Rs590 billion in the ongoing fiscal year.

They added that the approval of the prime minister was solicited for presenting the summary before the CCoSOEs and the federal cabinet. The meeting was also informed that 11 distribution companies are operating under the administrative control of the Ministry of Energy (Power Division).

According to the Finance Ministry, the committee did not approve the proposal presented by the Ministry of Railways to categorise four Railways companies as strategic and essential and directed to submit a transformation plan for these four companies before the CCoSOEs.

The proposal of the Ministry of Science and Technology was deferred with the direction to submit a business plan to the committee regarding the reforms planned by the Ministry of Science and Technology for STEDEC.

While approving the proposal of the Ministry of Information and Broadcasting, the CCoSOEs recognised the strategic nature of Pakistan Television Corporation (PTVC) and Pakistan Broadcasting Corporation (PBC) and directed the Ministry of Information and Broadcasting (MoIB) to present a viable business plan to the committee for efficient management of these enterprises.

The meeting was attended by Minister for Housing and Works Mian Riaz Hussain Pirzada, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Maritime Affairs Qaiser Ahmed Sheikh, Minister for Economic Affairs Ahad Khan Cheema, the chairman SECP, federal secretaries, and other senior officers of the relevant ministries.

Copyright Business Recorder, 2024