Senate bill to improve SOE governance

The Senate on Friday unanimously passed the State-Owned Enterprises (Governance and Operations) (Amendment) Bill, 2024, aimed at enhancing the efficiency of their boards of directors (BoDs) and ensuring good governance.

During a session, chaired by Chairman Yousuf Raza Gilani, the house was informed that the government would ensure transparency in the privatisation of the loss-making SOEs and take the allies into confidence in that process.

Law Minister Azam Nazeer Tarar moved the bill on behalf of the finance minister, which was approved unanimously. The bill would empower the government to nominate independent directors through an institutionalised mechanism.

The bill also provided for the majority of independent directors, security of tenure, removal criteria, enhanced board independence, and appointment of chief executive officers on the recommendations of the boards.

Leader of the House and Foreign Minister Ishaq Dar said that the privatisation process would be “very transparent”, adding that the government would take its allies and this house on board before the privatisation of any entity.

Some senators raised the issue of the privatisation of the Pakistan Telecommunication Company Limited (PTCL) during the tenure of military ruler Pervez Musharraf. They said that the PTCL was sold but the money had not yet been received.

Dar said that the PTCL was sold but out of its 350 assets, 150 were not handed over to Etisalat. The new owner had done its own valuation of these assets and put them at $263 million, which was very low. Regarding the Pakistan Steel Mills (PMS) he said the government could not sustain its losses.

Dar informed the Senate that some UK-based groups approached Pakistan to facilitate the Palestinian medical students of final year in completing their degrees in view of the war in Gaza. On that request, Pakistan Medical and Dental Council (PMDC) had agreed to accommodate all those medical students.

“Palestinian students will come to Pakistan in 20 to 30 batches for completion of their medical education which is very humble contribution of Pakistan [to the Palestinian cause],” said Dar. He said that the government had raised the Palestinian issue at every international forum.

He said that humanitarian aid should be given free flow in Gaza. Pakistan, he added, had already sent nine consignments so far. “Pakistan has also demanded proceedings against Israel’s war crimes in the International Court of Justice and a halt to the genocide of innocent Palestinians.”

Meanwhile, Azam Nazeer Tarar told the house that 30 electric buses had reached Islamabad and their soft launch was conducted on Friday. He added that a depot had been set up at the Jinnah Convention Centre, where 12 charging stations had also been installed.

“These charging stations have been installed with the help of China. This phase will be completed in four and a half months and tender for more buses will be issued soon,” Tarar said. “Electronic vehicles are the best option for a country with the energy import bill of $28 billion.”

Opposition leader Shibli Faraz said that “we must work with honesty and transparency, which is extinct”, adding that the government was responsible for all this degradation. Later, the Senate session was adjourned indefinitely.