ISLAMABAD: The Cabinet Committee on State Owned Enterprises (CCoSOEs) has objected to the Petroleum Division’s two summaries for appointing more than one ex-officio member to each board of Pakistan Petroleum Limited (PPL) and Saindak Metals Limited (SML). The CCoSOEs has directed the ministry to appoint one ex-officio member to the board before dispatching the summaries to the federal cabinet.
The committee met at the Finance Division under the chairmanship of Federal Minister for Finance Muhammad Aurangzeb here on Thursday.
Following deliberations, the committee emphasised that the composition of boards of State-Owned Enterprises (SOEs) should remain fully aligned with the principles of good governance and provisions of the State-Owned Enterprises (Ownership and Management) Act and Policy, including the principle of limiting representation from the sponsoring ministry/division to one ex-officio director on each board.
The committee also considered a summary seeking exemption for specified energy sector SOEs from the applicability of International Financial Reporting Standards (IFRS-14 and IFRS-9). The committee deferred the proposal and instructed the Petroleum Division to undertake further deliberations with the Finance Division and Law and Justice Division and submit a revised proposal for consideration.
The committee further approved a summary submitted by the Maritime Affairs Division regarding the appointment of an independent director on the board of Pakistan National Shipping Corporation (PNSC) against a vacant position.
The committee also considered a summary submitted by the Ministry of Industries and Production for categorisation of the Small and Medium Enterprises Development Authority (Smeda).
The committee approved the proposal to exclude Smeda from the list of State-Owned Enterprises in view of its statutory and non-commercial nature.
