New rules to bring more transparency in system: Minister
The Finance Minister says Public Sector Companies Rules, 2013, would bring about more transparency.
ISLAMABAD (Online): The Federal Minister for Finance Saleem H Mandviwala Friday said that the PSCR, 2013 would bring about more transparency in their operational matters regarding public sector.
He was addressing the launching-ceremony of the rules at a local hotel on Friday. He further said that the government took the initiative to turn around the public sector companies and constituted a cabinet committee on restructuring of public sector enterprises. He mentioned that the rules for public sector companies were also the outcome of efforts of cabinet committee on restructuring.
Following the pattern of the reforms, the government has successfully constituted a new board of directors of public sector companies in a transparent way and also enhanced their autonomy and independence, he said.
The reconstitution of board of directors and appointment of chief executive officers on merit had already minimized political interference in the management of such companies.
The Finance Minister asked the SECP Chairman and DG ERU to formulate a strategy to monitor and ensure the successful implementation of the Corporate Governance Rules.
The SECP Chairman Muhammad Ali said that a major challenge before us that the PSCs operate in various legal forms and shapes. The companies and entities governed under special enactments, statutory corporations, directorates, departmental undertakings, cooperatives and trusts, etc. non-corporate PSCs, e.g., NHA, Pakistan Railways, etc., shall be incorporated first as limited liability companies under the Companies Ordinance since the company law framework itself takes care of most of the governance issues and problems faced by such entities.
The corporate governance rules, specifically designed by the a task force constituted by the Cabinet Committee on restructuring of public sector entities to improve the governance of PSCs, include strengthening the internal control mechanism, augmenting the disclosure and transparency requirements, and undertaking periodic performance evaluation of the board members.
