In a bid to introduce a corporate culture and streamline the financial affairs of the capital’s civic agency, city managers, on the directions of the federal government, have decided to establish a limited company.
The public limited company will be a subsidiary of the Capital Development Authority (CDA) and will be managed by a board of directors comprising the CDA chairman and secretaries of the cabinet and communication.
The city managers are in contact with the officials of Securities and Exchange Commission of Pakistan (SECP) for the registration of the company. “SECP has been providing due guidance to the CDA on the directions of the finance minister,” said an SECP official.
The CDA board on Saturday approved the formation of the limited company for which CDA Chairman Nadeem Hassan Asif was quoted by a board member as saying, “the authority is establishing this company on the directions of the Prime Minister of Pakistan.”
“The proposed company shall be wholly-owned by the CDA and would be its subsidiary. The company is being formed to introduce corporate governance and is in line with the policy of the present government regarding restructuring of public sector organisations,” said a CDA spokesperson.
He added that the formation of a limited company would improve operational efficiency, transparency and good governance under the principles of modern corporate governance.
An SECP official said the idea of introducing limited companies in public sector organisations was envisioned by the previous government in a bid to enhance efficiency. “The idea of the PPP government was commendable and thus the incumbent government is pursuing it,” he added.
He said limited companies mainly take over the utility functions of public sector organisations.
During the regime of General (retd) Pervez Musharraf, the CDA had established a Project Management Office (PMO) to oversee such affairs. The PMO, which was directly answerable to the CDA chief, was recently abolished.
The PMO, which had undertaken almost all megaprojects during the time when Islamabad witnessed unprecedented development under the chairmanship of Kamran Lashari, was abolished after several controversies surfaced, with its responsibilities distributed among other departments.
“It is basically the revival of the PMO office,” said an official of the authority.
A CDA spokesperson said it is not a new idea as such companies were already established by the federal and provincial governments in several public sector organisations.
An official of the authority said the civic agency was earlier considering establishing an ‘Assets Management Unit’ on the pattern of PMO, however, later the idea was dropped and a company had been proposed for the same purpose.
CDA spokesperson Naeem Rauf, while talking to The Express Tribune, said the formation of a limited company was aimed to regulate the Authority’s finances in a better way.
“If formed, it will coordinate with other government agencies, entities and also foreign donors, if necessary, to shore up finances and to launch public welfare projects.”
Published in The Express Tribune, July 29th, 2013.