President Promulgates Ordinance Paving Way to Replace Independent Directors in DISCOs

President Asif Ali Zardari Thursday promulgated the State-Owned Enterprises (Governance and Operations) (Amendment) Ordinance, 2024 paving the way for dismantling the boards of eight power distribution companies (DISCOs). Under the ordinance, the federal government would have the powers to remove ex-officio and independent directors on the Board of any state-owned entity. The federal government would be able to remove directors on the recommendations of the Board Nomination Committee which will evaluate the performance of a director or directors of a state-owned enterprise based on the objectives and principles. Last month, the boards of eight power distribution companies were sacked by the prime minister for causing loss of over Rs. 500 billion during the current fiscal year. However, the government later halted its decision.