MOST IMMEDIATE

BY SPECIAL MESSENGER

GOVERNMENTOF PAKISTAN
CABINET SECRETARIAT
CABINET DIVISION
+++++

No.F.1/14/2022/COORD-RA-IV Islamabad, the 6th March, 2023

From: Amna Farooq,

Section Officer (RA-IV)

To: 1) The Managing Director,

Public Procurement Regulatory Authority (PPRA),
Islamabad
2) The Chairman,
Oil & Gas Regulatory Authority (OGRA),
Islamabad.
3) The Chairman,
Pakistan Telecommunication Authority (PTA),
Islamabad.
4) The Chairman,
National Electric Power Regulatory Authority (NEPRA),
Islamabad,
5) The Chairman,
Naya Pakistan Housing & Development Authority (NAPHDA),
Islamabad.
6) The Executive Director,
Frequency AllocationBoard, (FAB),
Islamabad.
7) The Chairman,
Special Technology Zones Authority (STZA),
Islamabad.

SUBJECT:- STATE-OWNED E}grERPRiSES (GOVERNANCE &

OPERATIONS) ACT, 2023

Please find enclosed herewith a copy of this Division’s U.O. No.5-12/2022-Coord

dated 3'd March, 2023 along with a self-explanatory copies of Finance Division’s O.M. No.2(2)CF-
IV/2018-Vol.I1-60 dated 27th February, 2023, Prime Minister's Office U.O.

No.700/M/PSPM/2023
dated 21st February, 2023 and Gazette Notification dated 2ndFebruary,
2023 on the above subject for informationand compliance in letter and spirit.
:G

.. gco
&d L
End: As above
\''-\
(AMNA FAROOQ)
Section Officer (RA-IV)

dJ

i)
CU

iI?I
 Most Immediate
By Special Messenger

GOVERNMENT OF PAKISTAN
CABINET SECRETARIAT
CABINET DIVISION
+++++

Subject :
ST
ACT, 2023

Please find attached herewith a coPY of Finance Division’s O'M' No' 02(2)/CF-
IV/2018-Vo1-11-60dated 27a1 February2023 alongwithPrime Minister’s lettet No'
700/M/PSPM/2023 dated 2151 February 2023 and gazette copy of State Owned Enterprises
Governance & Operations)Act, 2023 for compliance in lettel and spirit

(Syed Mudassa [ussain Shah)

Section Officer (Coord)
PH: 051-9202666

>+

it gI
CO Sr. Joint Secretary (Org-I) For PCP/PTDC/S&F
q.c3

J. ]:i= :::::
aS

a tRIg;II) ;:: lirr:8g(JRA/NEPRATPRAAA?HDA/STZA

4. ieiretarv (NfIgB) ' For Departmentof Communications Secudt
.o. No. 5-12/2022-Coord, dated 3'd March 2023

Copy to:
• DS (Coord)
 Most Immediate
GO-YTRNMENTOF PAKISTAN
FINANCE DIVISION
(CF Wing)
+++++
Islamabad, the February 27th , 2023
NQ. 2(2)/CF-IV/2018-Vol.I1-60

OFFICE MEMORANDUM
; D
! Q
Subject : STATE_OWNED FNTERPIUSES (GOVERNANCE & OPERATIONS) ACT
Sd 2023

): IA
!! The undersigned is directed to refer the subject noted above and to enclose herewith

}: AI
a :
Prime Minister’s once’s letter No.700/MPSPW2023dated February 21, 2023 on the subject noted

above. The undersigned is further directed to state that Ole State Owned Enterprises (Governance &

;# $ Operations) Acl 2023 ha been promulgated vide Gazette Notification No.F.22(21)/2021-legis

dated
;a February 021 20239and in backdrop of this the line Ministries/Divisions/SOEs are requested to follow
54
r > A defined procedure of appointmenanomination/composition of SOEs Board of Directors (Section 10-

16). and Responsibilitiesuld Functionsof the Board (Section 17'18) of State-OwnedEnterprises

(Governance & Operations) Acl 2023 in letter and spirit and process all the cases accordingly(copy

;_ enclosed).
I
)
a
a a
L br/
n :
jn a
br! (Safnaila Sharif)
eu hI Section Officer (CF-IV)
e Jj I 05 1.9214557
U
cP

!'ad; Th, s„„t,,y, A,i,ti,„ Division, Islamabad

g LZ The Secretary, Cabinet Division, Islamabad
J & g. The Secretary,Petroleum Division, Islamabad
4. The Secretary,PowerDivision, Islamabad
M 5. The Secretary,Wo Maritime Affairs, Islamabad
A' 6. The Secretary,M/o Climate Change, Islamabad
T 7. The Secretary,M/o Communication, Islamabad
= == 8. The Secretary,M/o Commerce, Islamabad
’t 1 9. The Secretary, M/o Defence Production, Islamabad
li a 10. The Secretary,M/o Housing & Works, Islamabad
as 11. The Secretary, M/o Industries & Production, Islamabad.
.S b 12. The Secretary,M/o InformationTechnology& Tele. Islamabad
a 13. The Secretary, Mo Information, Broadcasting and National Heritage, Islamabad
'$ 14. The Secretary, M/o National Food Security & Research, Islamabad
15. The Secretary, Wo Overseas Pakistanis & Human Resource Development, Islamabad
16. The Secretary, M/o Railways, Islamabad
17. The Secretary, M/o Science & Technology, Islamabad

Copy for info.:-

i. Principal Secretary to the Prime Minister, Prime Minister Office Islamabad

ii. SPSto AFS (CF), Finance Division, Islamabad

;y?pM„ q Al_ .,dJ K$f

 •

IF
q+ U

SH 3 gH
•

a
 t .n /

-;!

IBS
PRIME MINISTER’SOFFICE
IST .AMABAD
+++++

Subject: STATE-OWNEDENTERPRISES (GOVERNANCEAND

OPERATIONS) Acr, 2023

The State-OwnedEnterprises(Governance and Operadons) Act, 2023

has been promulgatedade Gazette Notification No. F.22(21)/2021-Legis dated 2-d

3rr\ February,2023 which, inter-alia, has bearing on the processingof cases pertaining to
idW+

e. 'N
:

appointment of CEOs as well as appointment/nominationof Board Members of Public

url o i
a : \ !
iN\! Sector Companies and Statutory Bodies except those speci6cally provided in the law.

\Q cbi However, the Ministdes/Divisions are routinely processingthe aforesaid cases of

gB +P StatutoryOrganizations/PublicSector Companies, under their administrativecontrol,

Pan (!:) to the Prime Minister as well as to the Federal Cabinet without consideringthe
provisionsof the newly promulgatedstatute.
+Pqnq

9: 2. In view thereof, the Prime Minister has desired that Finance Di\ision,
:Fri
il being custodianof the State-Owned Enterprises(Governanceand Operations)Act,

iI i 2023, may issue appropriate instructions to bring the matter into the knowledge of all
Ministdes/Divisions/Departmentsconcerned at the earliest, under intimation to this
£:: j Office.
a is
MR P 'Td“qI.'
a
a)Jje Q) . 1. 2o13
BIs
/)
(Dr. Syed Ta
h'/,Ih.;_
i Ai

11:::::::i & !
r+ Principal Secretaryto
r-02-2023

et Finance Secretary
i :
/VO' ?o' /M/ A Ph/bbs

\,LT

heRB
//
P
 REGISTEREDNo, M - 30?
L.7646

@be 60M B8kbaBt

EXTRAORDiNARY
PUBLISHeD BYAUTHORITY

ISI .AbtAHAB }AY,FEB}aMa§

PARTI

Acts, <>lxiinaact's, Presideat’s Orders aud Regulad(ms

NA'l-ION A.L ASSEMBLY §ECRE'{'ARIAl-'

lslaluat>ad,ike 3 Ist Janu£ry, 2023

/1\ .. No' F• ?2(21)/2021-Idgis.–The fUlton' ing Act of \{ajTis.e_5~,hoora

! !i: : ::: i:: •I : : ! ?S::c;

:1) }:: dp : : : rit ? ?ITI II : I ; ! :: :TNS ident on the 30 th January 1 2023 is

ACr XII. VII <JI' 2023

{AS P'\SSE!){{\’ TI IF MAJL}S,E-SHOORA

{FAR.LIA&tENT)}

Ax
Acl
' o ptt)vicie jOYXP'ern'itic:e andoi>era tion of ibc lnauogeRlent andfmaqcjcd
c$ciency fa sla le-C>\\ lled enlerpriscs ivned undbo;tRoll;j{\i lie
Federal Goverrt#ierrt

W}IF'.RE;AS,the federal (3ovwrlmei3to\viis andcontrols a number of stateA

'\\ nedenterprises estabii$1ndunder the various lawsof Pakistan;

JNU mER£As> lhc gov-una Ice and operation of tha,c enterprises if not
inadeeffulivet} Of appxVriMeIY affecis &e quaIl$’ of service delivery by the
State as \\vii as the fisca)discipline of the State;- - ' '

(81)
Price: Rs. 40.00
{ 1IB (2023}/Ex. Gaz,I
ST 'f}{E GAZinE o}; PAKmAN, EXTRA't FEB- 2' 20:? , {P#tY i
r.+=ub,)nvVUt&+#f'++jfV :Id==/I

aridaliciality theFeto;

It is her&y enacted as foi laws:

Cfm’:i'm- I

GENERAL

St a e {r) v: i e d : :?I):
t = :: iE: Jc:::::::Ben:= ?!!p:Pt=1! :?In:fR been Ucd tILe

(2) it shall i;ome into fayce at once.

2 DeaaiGoas' in this Act, uldess Que is anFtSag WPU@Wl! in a=*

subject or contexl,--'

(ai) uanici€s"means the aaides of association of a calnpmY;

'hoard” means-
{tD

(i) in the caSe cf a €oinim(IY,aie bo aId of 'hH£MS of the

cornpany; &IId

(11)
i:: f :: ::::::
:{ : :LIEIp: ( )::r :: ::::5E!!:1:L::: : r E:1: c; ;f= tea!? T=: i
${atutory bodYat enteQn§e

{ct ':1..he:' executive officer” tneaas '

( i) in the case of a ,a„npany, the chief exewtiYeGRiCeFof thc

- ’ qomp8nyT by whatever nanle €al£ed; aId

{d) 'kcntro IIed by the Gov$nment” incarhs-

a) : :::i=S)$1£ct’i=:Hi:VC=t:Hb:;;taT
LI lira} avIr ln£wagein£n{ or gI&ticy decisions, c%atisablcbY a
person ind{adndlly or through any person acdng in coacel1'
' PAkr I i FHEGA>:lilIE OF PAKISTAN, EXTRA., FEBr 2+2023

a{rcctly or indirectly, whether by UnIIe of FMera}

Gov€rtmeat sbwehalcHanmanagementrighT shareholders
agrcwnent, voting ag@€wwIitor aalerxvi sei

(ii) in the case of an antiEy ended by al Act of the MajHs_e_

Skull na, if the F6deld {}Qvenwn8t hw the power to apj>i at a
m4odty of the pW>ItS who we dkvctors of that entity or
o&wwise bas are pawn to deter!11M dIe Ou&pam; of
dwi sions about the entity’s In#rlagenlart or anatRial and
operating policies.

{e) “commercial stateawn©dcnkrprGe” nrcwls_

(i) a State<wIred ea{arpdscestabBshedwt&r the Colnpqjaies

Act, 2017 (XIX of 2{}17)OdIn dIm conpalies lic©nwd under
section 42 thereof; or

(ii) a $utc-owned enterprisethat g€n©ata the nujodty of its

revenue from the sale of gmcis or $etviees or a canOE;&tionof
goods and services on a comn3ercia} ba£is.

ff) "companY” ax: aus a companyincoworatcdunder the (ottrpuni%

Act, 201? (XIX of 2017) which is a state-owned cutelprise i -

ig} “dir€ccor” iiiearls–

tit in ! Irc case of a con4}Bay,a dIet(or appointedundo. the

Conrp3nic£ Act, 2017 (X tX of 2017); and

(a) in the case of a slatrnory stateowned€atctprjse+ a atcrribrr of

thc Rn\rnHng bodY desi#rated mda the applicable im.

( b) nornl lice d[rector” iDealIS--

(i) a director who represents the Fccfuel or Provincial

Govcrnrncnt; and

( Ii) a director who representats ano{}}er SRa,.awIBd 6ntclprIsc.

(i) ycp€Rdcn£director” raoulq & dbeck)r wh) A not all er,o8lcu3

director andis not disquaiificd under section II; '*

Q) 'owned by the Federal Goyerru71ent” means-–

(f) in the case of a company, an entity in which the Federd

(;orxnmrent directly or indirect[y Ito ids fifty perl'ett€ or more
stramholding; and
b)

B,{ THE GAZETTE OF PAKIST4Qq, EXTRA- Fe. 2.,2g?3 „ , „ {P,\xT i

(H) :It::: :::eb::/e:::I!:;:Ls£f:)uQ£ln:: : IF?;i=: 1: ajT::

Stroor8.

{k) a}xestibed” meanspresatbedby mics madeunder this Act;

{ }) +'public service obbgadoi!”nnmt$ $re groanedservice or aCtIVItY

referredto in a public serviceobligation aWe£lteat;

{m) HP abc service obligation arcaneat” means an agRaWn} lefe:ted

'-“' IcT in S,'hedu le-a“ be@cell the Fedwal Goyenwnot aac! a
CGmmrrc.id §Bxc„ow13 ed enterprisefor #re Ii&deltakingof a public
service obligation by the eguunercial State-ownwl entwpaKttl

(a) “Schedule”lucans Schedule made undu this Act;

{a} „$ateowned ente qrdse” means a Corporate bodY BIting withln the
scope ofs€gtion 2; and

(P) “statutory state-ownedcateFpdsc" meansa state<wmd cnt€WTISe

e$uxbliIJled \llracr im Act of !)adi&meat.

special enactmcnU but shall not appIY to--

fa) regulatorybodies \which ate empowered}P iss: licelue§' mInt

hda5 or und@take investigations andinqukies\\{th FeBalt! to n61l-
ron@]iance of theirsmtuto ry function:; mi !!owcTs;

providing health and

{b:I subject to sub„section (2>+ enterprises
ed;icational servic€$ and facilities; and

ict $nNcc{ to the cr!.terialaid dourI iiI tIle stateawn';d cn£cqljsc

bw;elship and managelneatpolicy, any gate")\vac& fut TWas I
specincaItyexcluded-korn the 6©83pie€€> Or puMa! applic&t£iEn of
iIi: Act b; the F(xIera! Governmeatfor reasons to be recorded and
by nodScation in the ofRcial Gz£©Ue'pra'A&d thet .Wct? cxeIus ion
does not undermine the objeetives and pTiaciplaS of this Act-

Go \r c n ) 1:?a t r rcT: e:P::T:::tt:: i ; { } rd:: n ;Ii)c}{ } I = : : := it;xII)!!!e :lot : : h :cTu :It

 hF r P>

THE GAZETTE OF PAKI$TAN, EXTRA.F PHB. 2t 202)

inchlding without hndtadon to entities which the Federal (,overrnrx,atdoes not

have ownership in but exercises conUOl thereon:

Provided that the Federal Gavwwnent shd1 have the power to amend
Schedule-1;

CHAPT£R-2

STATE-OWNED ENTERPRiSEMANAGEMENT POLICY

AND PRINCIPLES

4. Stat&owned eatcrpri#e ownership ©rd managementpolicy'„ .

(t ) The FederalGovemrnentshall at least {}ace in ev(xy five Msp pr;par$ and
prcsaibo a stateowned cat@pHu ownersUpdadmw)agBarea; paiL} &;r giving
effect to the objecdvesof this Acl a8rnely:– -' ' ' -' -

(a) that the s£weholding responsibilitiesof the Federal Government

with respect to its state owned enterprises are ciari6ed;
(b) that the Federal Government acts a$ an informed and active
slweholdec arId

(') that fiscal risks a$so<'iated with state owned enterprises are
effectively managed:

Provided that the first policy to be developed under this Act

shallbe notified no iater than oneyear from are coming into effect
of this Act:

Provided lwtllcr that in the dweloprneatof policiesunder this

section, the Federal Governmentmay seek Input and msistzat.'e
from the relevant s{akchoiders,includag any rcgplatorybody> as
may be required.

P) 1:he P' iicy nland to in sub-section(1), dIal! prdid, fo,,

inter-alia

fa) the criteria andrationale for owacrsbipF retention andestablis}meat

of a state-owned enterpriseby OreFcder8 Goverrrment;
(b) the role of the Federal Governmentin the govetnan£.cof sh(e_
owned enterpriSes;

<c) the manner and procedurefor exercising the right3 of the Federal
Govemnent as shareholder in stateowned enterprises}hclud£B,
without Unli£ation, mattersenumerated in sub_sectIon 2 of seed&l
29, subject to die principles laid down in this Act;
}\ J a

86 jPA&r I
THE GAZtITIE OF PAKISTAN, EXTRA.,, FEB. 2, 2023 I

(d)
geE:f::tr: ;::;;ITJT::icTIT::: =:Scr:::TIE:iT;LucJR::
;87i–-–Boards and. other suke}!aIders involved in the
irnpicineMationof the OwnershipFaheY;

(e) the roleof andman:lcr of operation of the Genual moaitar@ una;

(f)
IT;t:::::I ::dc:i:=!!: 1(1:::L==f:a::1::In :[1Eb: IIte (Fff ;]::I= seEFIEE
public;

(g) a fyam<-work for ensuring coTnpetidVC neutratitY of the State with

respmt ta state ow7led enterpns®;

(b) a public sector obhgadoa nmaaganwd B:Mewotk;

(1) process of moaitoriagaadmarlaOnBcontingent !iabilitie$ of state-

owned eaterpdses;

a) guidelk1is for bond noadndionsconufiaee white elercrs)ng. lt:

i=;ii'i'i;-'u;lier section 101including with respect to diversityand
adequacy of board composItIon;
of U- njPct r) and
(k) the process for evaluating The pcffonn;ince
independent directors;

{}) thr c03lhg off period for the appohtrncn{of indcpcnflent directors:

(m)

thereon;

the cdt. for rxciudinga stab owned cntwprbeMm the 3:nba of

(n)
clause (c) of sub-section (1) of section 31 and

(.) any otherm,aeriTquir.d to gi"C effect to the provisions &nd

objectivesof this Act,

(a) the m31uler in which the Board shia i undertakeit:; nspwisibihtics

with regard to-'–
fJARTI ] THE GAZETTE OF PAKISTAN, EXTRA.> FEB. 21 2Q23

(i) devek)pment of a businesS plan and statement of corporate

intent un<!a section 8, helMalg without anEt,itiaiI the
dewlopannt;of mfwmanw indiak}IS aridspecifictargets and
the di£ck)sure ofpuhKc service ob$g3aorw and-target areas;

(ii> appointment of chief executive officer under section 18;

(ni) ensuing the development of internal systemsofcorltrol under

sec lion 20;

(ivJ estabiishmeiRof an audit committee under $ection 21 ;

(V) Ualely pqwadon arid pubbcadoa of dre$nauial statraent9
annualrc;Wn andbaByway rqort undu sections 24 to 28;

(Vi) timely submissionof information to the cena81 tuorritorjag

unit under section 32; and

<vii) ensuing die iaQdty of the infodnatioa subaatted to the

centralmonitoringunit.

(b) the nwuer in which the central monitoringwrit shall wrdcrtzkc its
functions with regard to–

(i) maintaining an electronic database under section 3 1;

(ii) providing analysis under sub.section (2) of section '3) to dIe

Federal Governmentor its standing committee m the cue
may be;

CHI) issuing periodic TeNdSto the FederalGovernmertt or its

standing committee as the casemay be, md making such
reportspublic, under sub-section (3) of section31 ,

C d the manner in which the FederalGovernmentshall undertakeits

functionswith regard to–

(i) prescription of the 8taeowned ante@rise ownerarip and

management policy under this section as well as other rules to
be prescribed under section 34;

(ii) roles and procedure of the standing cornaliaec to be

established under sub-section (1) of section 33;

(iii) the roleof the Division to which the businessof a stateowned

enterprise has been &liocatedunder the Rules of Business,
1973 with respectto–

X
/\\\V&T
THE GAZETTE OF PA$US’fAb&}a'f R4=FEy i ;' 202+, jT'AXr 1

{A} to<>£dha6ngcornpH3nl'= with ittis Aec by {bc Board;

(B ) ::::::i =t::: :=LI: o::c;I t IIU {} ] I= ={}: J: =:EH:: ej :: :b;=::::

i

luxicr section ?; and

(C-3
E ::iT::::gc:={;; : fije: fluLEE: :::I:IE :: :::1: i =:;}:::[f : r t::
1

objectives of dHs Act.

(iV) Me role of the f.edera} Government or its standing <MwuttOC

as the case may be, rcggrdia8 tIle exercise of shaeholdine

IIe: : : :: : : i ?::1::Ie IT:1 :::JfIlife r:3:1Li ::I : i ot:: sc::::

this Act.

R:i :\a
: p t c 1TI d: : TT\ i iT ::
I=!!!i=:yE1;j :: \;II: :St :::i;ii
;he foilowing general principles,naoleiY:
: :: it I:::::
ta> the principle of prudent md efficient nw}&BenIcM accaFdlng to
which
OR :1

(i) ii cortrn3erc ial state„owned calerFRrsc tou.q: apcFm

can In&f€ialb8$isthat is eHlcient andp[oHtab iit: anti

(ii} & stateowned enter Mse firust opera ie efficiently anti

cffcctivcly.

“}}} the pruieipic af inchwaHe pwfotman?&aea>nRgto wInd! a state

o,vi,xi cnicrpdso must identify its 6881 iias gods;

t C; the pdnciple or responsible fnanag,-n lent accordingto which the

==n;;;tTI int of' a sJbanqted enterpriseniu scbe co€npctont' honest
and accountable;

{'d)
: : aT : : : ::1: : :T: a: :••
: :tHrU:Ib : :fr f ;(:: ==1===(1): : i1 :: 11; ; \T
4 : r::itf;

andtim60usly;

( C) the pdlupipie of monitoredper'tIan aaoc accordingto wIIich. a state-

ava;cd riteQrise ly lust be subject to rigorous monitodn{{and
f evie\vi

{f) the pr{rtciple of coalpet}tivericuUalkyllad

+
 ( --L p

ART ! }
p{$ GAZ,hI,B,Pf ?/W$TAN, E4TRA.I rIB. 21 2023

(g) the principIa of pro£ecd©a of minod€y share&o}dc€st according to

which the gavcmment and the stat&owned alterprise !;ust
RGa®i5e tIle aBba of all shanh©idersandenglaoall $ilarebald©r§
are heated equitablyandhave Hud access tq £€xFJtaeit}!ixnution
and the ability to aoni aate directors iR a n$,inrrer a>arnren$urate
with their shamholdinginterest.

CHAPTER-3

PRUDENT AND EFFICIENT MANAGEMENT

6. Soaad and prudcat rnaaa€€m€at,d}}Evcty $&te<rwned

ent aprise
shallwtdeR8kcib opuationsin accordance wiar dIe atala for sound
andprudentmaaagernent, namely:---.

(-> the business of the suieawned ea©pd3e is cnrtie€}on with

in@tY, objectivity,due ean and the professional skills
apFaof)date to the nature andscaleofibaetivitks;

(b) each independentdirectorandchief executiveof11ccr1 by

wb&t€ver
nunc caNal, of the stateowned ent£©risc coaldies widr drc
pNSCdbed fit andpropa witcH%

{..) the stateowned cueQd£e is directed andnuaaged by a suM(;lent

aunt>er of persons who are St and proper persons to hold the
poshionswhiCh they hold; and

{d} the statcownc<!cntelprise maintains adequate &cc{>u{Kiitg andother

recordsof ib: business.

(2} Accounting andother recordsshallnot bc rcgwded m adequatotbl

the pulposes of dti iS proasic)a unless they–

fa) enablethe business of the stak-ownedcatuprise to be prudently

managed;

fb >
enablethe £tatcanued calaI>dsc to comply with the obii&3tion$
imposed by this Act; and

{C> camply with all profe&siaaa!standmdsand pmrwtatcemenbof

relevant pmf6sion41bodies as applicablein PaEktw.

7. Objectives of stat&owa€dtat€rprises'HI) The paulary

objuti\t of a sta€cowned$ntwpasc shall be to op©aIs in all ef&$ientir?alina',
achicvir lg the objectivescontained in, and acting in accordancewith dieir
respective Acts or articles and!newor&udum ofa+$9ciaH6a, as dIe caseamy bc,
\\
fr /

su I'hE 6A7.1, i ’rt.. c>i' ?AXl?T/\N' $$-}:RA_, Fqqi3_??;},_ I!'x2T I +P

<2} SBtr_owned EntcTR sas, in undertaking their primarY objcCUYCS'

sha}} }.,ave rcgardt alnong${ a(itv nratter§, to:–

( aI the efunondccansequ€n@£ of any decision in tha long term:

(A the ne{.a to fast{x ac state_owled cateriaiR’s business

reladonships tda suppliers, gustolaws and Other $ukehuldCTS

ale
(C) the {mpa£{ of thc aat€otwed elrterpri§e*sa})eraUoHS oa
colnnrunIty and the eaviromnent;

{d) the importance of the state'ownedenterprise mamtunrng a

;:gutati i)a for high standardsof business canduet; aud

(C) the need to act fairly as bctwcur rnemb€{s of the state-oq1led

enter}xlsc.

su$t4ia3b icl

a n\ r L )\ 1: : L) t :: { 1::I: j ! it ::: : = :: Re ::Ll :1 :1 T:: : : TiTIEIT:IT aiMS : :: IIfe: :it

entcrpn' ic.

CIiAPTFR-{

.VEASU&\BLt PERFORM A SCI;

g. Businessplan'„---'{1}The Board?f. eve'Y \t&tc4yne,d caTH:

sta{c-tjwtl€J. enterprise shall achieve itS pdnnFY objeet IVC

Proaded thaI the business plan must be effeclivc cu1dle fiat daY of the
fIrSt finallcid year to which it appIIeS'
f 2) if a stau-owned enterpriseniks One or more sub§i&ages,the
JU,incsJ pI, in must, for caCtI subsidiaFY and fm the FouR as a whole’ iociutJe
 ={E G4?#IE Pe I' AKI,STAy} PXTRA.P FEB. 29 2023

ie::==;cT::t!)=£Mioa§' saa@c d@chan wd &R&Bad Wqw aaas of

for infeltlrration

_ . (4) The board of every stat&own<! erIeIpr& shaHat &e $taIt of each
jia:rae;at year, adapt andc?use to have published ;aaemea; of=qvrutf'iiifn;
fu tIe SMe?!nEd en{qTdse OT aa gr&W coaWMiag&e s&;}eos;==;;i;;;;;
ind iP fsubsidjMifs Cif any), in Nswxt of agt y;aT and dw [buowh iV,;
financial years in the manner andfonu Set OUt in SeXe&dCU --"- ----'’ -'--b

C}{AFTER-S

RESPONSIBLE &hNAGEMENT

1 9: Applicationaf this Chapter._This chapter shaHapply to an

: : :::][id =r ff: :atT: ::== { e: : :Eg111:T ::: vn ot RFittA Md hg my gc on kM cd baBy

la. Board Nolnination$ Committee._„{}) There shall be a Board

Xanllr13tioru Conxnii ICC comprising-

(*) the Minister in Charge to wIUcb the business of the §tateq\wed

cateMe b&g been a!]ocakd uxicr the Rules of Busiacss- 19}3_
who shall also be the Chakof thc eanwdtxe<,: - - -----"" '’ '''

ProvIdedtIm where the Minister in QuBe is the hM Minkur

he mRy nonIIRate nia ther nl€mber of the Fahca! GQv6r&IneRt to b;
Chair of the Committee;

{b> the Seeretary of the Division to which &e business of the stake
owned entcTt{se has been allocatedunder the Rules of Business
1973; and

(C) the Se€ntn}’ of thc Finance Division or tis nominee of at least

BPS21

(2)
The Board NominatIonsCorwrdK6e shall be rcspon£ih ic far–.
( a) idenWn}{ anti rccomma}ding c&£uiidatcSto the federal
(3avermn£ni for appQi&trnGnt as itidepe IId.an( d&w:org wtadi the
Federal f;£rvcrnrnent is empoweredto appoInt to Bo,was; and
 THE L OF PAKIST;B, FEB, 2, 2D;!3 II'aT i

(b)
;;;1::?IT ? i : : b;!i =rtf:: O::::i;itr?o; GOfb:I cb;Ldd
=p e: It::I:veIL ITS :
or w}icrc acies$aryt a ProvincialGovcwlrent

}knikd ta

(a) advert{semeNin an€w§p apr( S> of wide circt£la6on:

.M rrquestingq)plimdou§ by iavitabOR;

{C} appl)bRing a head-buRRig a®mY; cw

I’d)

:iFiSaT: :h::I;};=::Xi$i;!: fiJi;iiT::::::iT;I:=L

; d { }= c:::f i : T:;! !r ===!!Q:: ][:==::=e: ;A =fk :hi=::

in Po =:
directors

st 1:111 n( ) ! i E :D
1 ::):i?!!!! ! a:j: ) =ofIt?: : :n :: : : :Flyjb = 1:SIIL:;: LTd=:iT:

:tarnet}’:

(D a pctso,a u-ho is under eigIIUCn year§ of a86;

(0) aperson who is not a a8twal person;

& pers. in who is all undi5c}uuBed bankrupt in anY judsdictlcxi;

(d) & person who has been convicted of an odeace in an>’juds&cnolX

('C}
:1:: i =:ii:::t :: : :opT::::ie :LI:t :rat:::::t : aD:::f=y : : :11k=:; ; if ::
the management of a coTponib011;

(i) a person \vba is deei&red !nentai£y unfit by a !}redcai hoard

constitutedfor this purpose;

(g) & person who iS in the service of Pakistan;

<hIt a munber of the Majlk-e-Sha')raor a ProvincialA£sembiB

p.qR? !
AHA4EU OF PAF;TIWANf WRA. I FEB. 2+ 2023

(i) a holder of n politic&t office whether or ii(x in a !cui61&tjve role; or

a) an ealploye€ ofa stat€4wnedtmteipdse.

! a.
C;ampositi©8af the Board of a campany.qi) A Board of a
conway shall Gaasist of ind£pcndcat direcbfs, etdacidabBauswld thc rhkf
executive ofFccr of the company, with the raid site £UN£b <x3nVetcaw=
knowledge,exp€dencearidapproach so thattho Dowd w a gFuaP iacla&os 1.at.:
coTneU;ncics and diversity wquir€d to assist be CM@any actgjve its primary
objw dye.

(3) The nmjodty of the board shaH Gangjst of bdq>eatleatd}retaIlrs.

(3) No personshall be appointedor norninatedas a dha.,torof more
than five stateownedenterprisessimultaneously,
&!ciudi ag dIgjt §ub§idiarie$.

(4) An independentmembershallnot swvc for glare than nine yaMS aa

a Board, and shall not be appointedto drc satin Bowd after two collsecytNe
a:nw unless a period of three years haslapsed.

13. Tea& of office of directors.q,I) A director, owe a@oiatedshall

boki otBw for the periodspecified under the applicable}&w1 ualcsi be resignsin
w71blrg or is removed earlier in accordance with the provki£>iu of this Act.

(2) An independent directoronce @po&ltadbythe FederalGovernment

shit! not be mrno ted unless it is c$t&bii shed aw)agb Mr inquiry conductrd in &le
prcscvibcc! marIner that-

(a> the directoris fbund to ba in nonqaaVii%ICU with atc provisions of

this Ack or the C©rnpallies Act 2{}}7, (XIX of aol 7) por my Ofher
applicable la tv;

tb) the dkcaor fails to fulfil his dutiesand {asponsibiEde$ under ths
Act;

{c) the £iiretnr is found to act in-a!narlaw dctdrnei}{81 to the successitt]

management andoperation of the stan'on'nedenterlwBg or

(d) are directoris found guilty of mjscoa£juct.

HIplcnrariarl.-–For {he purpose of this c}atlse, miscallduct includes„„_.

indulging in a corn£>cling }xofessialwi or personal ccjanie{ of

interests’ situation;
nt I J \\ \n
Ar-
{

[ }{k ciAZE-i-ft OF PAK!$-{'4y ,qX!$ 4 '}H?&#P

nnfl•N#nl•B++n

(ii} using the fullds. ashe is andresourcesof the state"<>wi led €ntelpFI se
with cru i duediligence andCara;

(i i )
i ::jJ: i :if =
11:: :[f: :; e;C) ::#! !:: ::1: 5::1 ;}1T aSELf :VAT;: = !
or verbal abuse;

{iv)
LI:r : :: FcE :: :1it: 5 : :: : :e: = t 1: : :afl;7:: i t: : bT : h : Et::: = or tICS tHe

V) fai lineto comply with The staten\\ned ent@prise’scode of coilduct

or cort{lict Qf in€erest reqQiFetnen ts;

{ vI
:IIII:::= = ! = : pT }:: L ;}:::dR 11: :::inI i :f :yo !it:::=:
1F::I :iTII : Lou=
on the Board; or

! VII

officia} duties or functions,

dIV to day operationsof the state-ownedcntcFpt lse

(3 } ' ibe chief executive Officer shail '

(H) be responsible for the in8nagcnteniof the stateOwned cntcfpt-la

and far its procedures in Gnanci&tand other in aKers un<It?
deloRation {}ain the b(>ari,I and subject to the over:it$ tR and
directions of tile Binr.3:

<! ') ensure the I)roper imple{uc11tatienof sttatcKies anc! ilolicl':s

api)fI t\'cd by Ihc Bai if a: and
' .PANr'll THEGA)'ItTTl: Of PArtS' I'M, EXTRA.p FEB. 2r 2023

(C> putting in place ap}uolxia tc anaagen}elIIS &> $xr8ur$ @t ftu3as arId

resourcesare properly safeggardd aa are !Bed &KWH)tH£cnl&
ef6ciently and effectivelyand in accarduR$with the $b&.own;j
GIUe@sebusinws piaqI the pdwyry objective and ali $ btu tory
obI{gations.

16. Nt gad proper craeria'--„{}) The Bt and proper c£iteri& shall be

pe$uibed in Schaiuk-iV and shall apply to kI&FendaB &k$€kxsJ the chief
executive on mr, the company 6%ret,iq and aa other &B&ictaraaagelneiit
of7iccn,by vhzHvu nunc called of a stateownedaitelpri set

(2) The requirementto comply with &e &t md pa>per(aitab under

this Act shall be without prqjudice to wrnph&acewMI any 8thit r,%;dr€tncnthr
the fiun£s und@opdetyof€iim£tars or seniortiwiag€iue&to8r€€tslssltd under
any swciai law, niles or regulations by a8wtor rwMain or audIQtitygoverning
a speci ged sec{at.

C}{APTER4

RESPONSIBII.ITIES, POWERS AND FUNCTiONS OF THE BOARD

17. Inciepeadea€e of the Board,”--XI) IIte Band shall be gR<xI

autonomyand independence in the dischargeof its &actio is uMar this A-at or
any other applicablelaw in &ccoKianccwith the adajRedbusinessplan andno
actndnigr&avear Sanding iasRucdai}s by any IXvjg&)n of ike }ed€1xl
Govcnmcm sbali be &pplicat>Ieto any sble4wn8d erIk?prise$udcss prior
?PPfo wi of the FederalGav©&meathasboca abbirl€d mIdmy suchhdrtw;ions
alreadyin acid at the time of corning into caect of this Act sian requireradaal
Governmentrati$cation within a period of s,ix noaM fdiiag which they shall
be deemedio be rescinded

(2) SM-owned entupd ses gba!18raiaMin iadq>exrdgot !yttNdI:cm€£it

policies with the approval of the Faiwai Govetumorlt+w6i€A ecBMi>{ywith de
Cti&awedkndtuie uf .Pncwem6rit and StqpJAy’sG{{}baiSiaIMaa of
Procurementand Supplyand shaHonly be Rsponsible for colrlpliwwe of the
provlsion$ of the Public Pmcwent€atkegduory Awaadv Or&&un£ef HX)2
(mit of 2002) to suchaxtutt as may bo directed by the Fedwal Gavernrneat:

Pai\qcleci thaturIaH the procunau.'atpolicy of stab.owned enterpriseis

pHp&cd and aFPN,YCld bY the Federal Govenilrleat',the Public Proeur€il lent
Re9datDrY AutM€Y OfdhwIce 20023WI of 2002) apply PH&rrart£ /nwa#dh to it

iS. Appointment of the chief execwtiveafBc€r,__{I) lbc Board?in

the caseof a company,or thcconcernedauthority in dIe caseof a statutorystate_
a\med eat WEdge shall appoint a chief executive officer to the stxt€i>wned
cntey}wise under a performance based ccaaract for a sp%iM pcdodT ulless such
'\ \

'rFIE G. l! Of PAKISTAN+ EXT: FEB, 2, 2023 pART I

pedod is already sp%hed in th$ andalent govaNng a $uMory stateowned

enterprise:

p£arinirIg.

comrnurlicatlons as ncQessaW'

(2) MG BoardshHUdGVek>pandimp luaNg a code of conductfor e:

;;I erIIS::: : rT ::: ruT T iS;F::: i} Ep]:ef ::: 1::: : :v$f•]:e:::F =v==:£n:i:Pl;it
;; ifiii ;int standards and co®orae values are in place

Pr<,lvi hd that the code of conduct dc\'doWd under this sub-sect.ian spy

!a Enforeemcntof sys Kmsof internal control._TheBoard sha.II

::::=';;;iiI;ii-til stateownedeMerpd sc ’s htema} patiei%.

ProMded thatthe Chairman of the Boardand the ChiefEx@utive Officer

of the state_a,vned enterprise shall not be members of the audit comndtte€

(2) Tbc dual comrntHee shall be respoa§ible far–

(a) ,ccornnlending to dIg Boardthe appointmentof el\teara:I audiion bZ

* ' dlc state_owneden!€rpriscarra shall consider any questions of
 I’&kt !} THq,GAZE'iT£Of PAKiSTAN, Gmt(A, FEB, 2, 202)

resignationor removal of exer&al auditors, audit &w aridprovision

by external auditors of gay §$wiGe to the stat&owned cn£6tprise in
, &ddidarto audit of it& finnwid statements;

(b)
dixaminadoa of anuoFniui$ n!§asww to safeguarddIe she awed
HRmIRisels assets;

(C) ali reports and£omraunicatbas with ext€rna}audtars;

(d} review of half-yearly md.annualfinancialstaMleats of the state

awaed eat@pdse, prior to their approval by the Board;

(e) easwiagcoordinationbetweenthe internal and ext8nil audtots of

the state owned entwpTise:and

(f) it:vestig$bag, wlwe noaway a1 a co&$d€ada]basis, aIry

deviation&our or violationof the company’scode of conduct or
adm systemsQf internal control.

22. Board meeting&qi)The Boardof a wa3panyshallrxwet–

{a) at least once in€vwy twa maths; and

(b) at ather timesthat the board wn£den &eecsSKyfor the ancient

mafIag£araa of the business and affairs of the sta&owned
cnterplise.

(2) Notwidutanding anythingcontainedin wly other law for the dIne

beingin force, deei$;on8 oF the BoardshalltM aRea by RMJQrity, howeverthe
following dccisiaa8+hall yaquiw a d€ci sha by three.faw& majority,which shall
includethe vote of the naIldacedirectorreprwendng the PedcrajQr Plovhrcial
Government,nairKly--

(a) &ppoirlbatIKandremoval of chief executive o£fi®r of the state-

owned enterprise;

(b) approval of the statementof€oQanteintent andbusiness plan;

{c) pro:msaIs for sale of sizeableasseG;

{d) &maI budget statement approval; and

(e) sale of assetsof the company.

(3) The Chainn&n of the Boardshall in c&se of equalnumberof vow,

have a castingvote.
'''\};'
-P'\RT ;
’}}{t G.AZETTE PF PAFIS,raNt$X,In: r%,if e::i

23. IMewni$_„_.No su.{Cpr6wcution or ttLlter leg#! pTtCCCdirgS shI}ii

with due care.

CHAPTER-7

TRANSPAltt:NTPERFORMANCE

Financial tAR$p&r€ncy.qi) The Board sha it cos*''e jb*t !!*: .

st:nc_on==: Ii';i;-rI;;' along ;vi th it; subsidiariest must keep w Atten fInancial
recordsthat-

(3) correctiy record and exphh its transactionsand fInancial H>$1tl011

andpcrform8nce;

(b) ,Dahl financial $htealents to be pwpamd and audited :n

dr<,ordanc© \with this Act;

(Ct

::::Fr i ::T :I) = bi :Jc: =c:ro: is : =::r1::t:::\::: :: :: e ;t: == =: i

a
p

i:::=: ::: i=1: i I =; Q

1 :a s::ec r: b: : : re:! r:: :: i :IT:iP:: us: :IT: t : : : : : t
t I

arid

(C) enable6th tx reports requiredbY !his Act to tw pFepwcd'

f: } '!-he recordsrequiredby sub'section< ! >V---

(a) shalt be bpi for at ieat ten ye,us afterthe dates of the
{ransacti€-)us to b,}rich they reiat©:

(b) must be kept at the principal piace Rf bu§infss OF,the

registered of§ee address of the staR“ou'nedcnet®se; and

fc) st1111 also be kept in etecKanic &vm if aR:Y &fe madl!>

rctr£cv;th ic andconvertible into hardcoPY form.

Financial statcmenIST-41} 'lbc board of a stateowned enta}xisc

1111lst ensue acre is prepared. for each financialyear. audited fInancial gater&enb for

Itu: s!,aeqy&nedenterprise as well as consolidatedfinancial $tatcnlentsfor the group

co :lsist{rIg of the state_!)\\IIed cutelprise a11d its subsidiaries:

Provided !hai for {he pu!-+3{bcs of this section, a subsidiary shall I lot
;tIt;!tide ajoint venture.
 TRE C; OF PAKiSTAN, HEB. 2, 2023

(2) The Rnancial sta{emenB a!£tstbe }wBparedkt wcotdahce with

Intcmation8+ FiaaacialReportingStandardsandthe an8ncial$tatemen ts together
with &6 notes to them alust include all jnfowndjon aat is &e<,e$§wytt) enstxrc
thatthe 6nancial sta{#mealsgive a Hue andfair viewof the gameial }XISidon of
the stainowned ea awise and the group wasi§thg ef die subowned eTthfprjse
and its subsidiaries:

Proqd6d that where a $t&te4waed eat&Qrise is Int faaowiag dla

hitenudanai FinancialReportingSun cMs at the aIde of calllag into eaect of
this Act, the Boardshall ensure compliancewith this ptovisiat wtb1 a period of
three years &on coming into effect of this Act. ’ '

(3) The financialstatementsmist be ac®awaided by a declarationof

the Boardwho&w, in their opinion–

(a) there are rw$anablc graunils fw be Keyjng that the sta©©wn€d

enterpriseandits $ubsi€Hades shalt be able to paydrekd€bB a3 Qley
hwome cillcandpayable; and

(b) the financial statements andthe notes to dIem con:Fly with the
require:lunt$ of this Act andin{enuaon31acm mt&w sat:cMs.

26- Annualreport."qi) A $tatewwrB€!enterprise nitut submit to the

Federal Govenmcnca reprt on its operaticlw and it8 subid;desfor the
Huaneal ycar to which it relates, not !der than four rn©ntfu aMr the aId of th&e

financial year in the farin prescribed in Schedule-VI.

(2) ’Ftle annualreport may omit infoan&tionthat the board of the state-

L'weed critapasc reasonablyconsiders is likely to alateddy prejut£€€ the

commcnial int£tcstsof the £ateawned eatapH%wa sub§id&ryifdi£ciased.

{3> The Boardshall submit a report to the Federal Gaveenaullenton the

infonnadon omitted from the annualWFwdwider sllb-seedaIr (2} andthe reasons
fm suchona£sionandsuchreport shall be confidential.

27. Publication of summary of &nnaal report.q'l) A $£&toqwncd

enterprise tnust arrangefor publicalionofa swna3&ry of the wtnua! report on an
iutemct site maintainedby the state-owned enterpriseor, where the sat©owaed
cute@rise does not have a website,on the \vet>siR of the !Xvi$iwr to which the
btwines of the sale-owned arte@risei§ aHoeatEdWIderitto R„des of Bus&less,
t 973, or in oneor more ncwspaiwngenerallycjtcu}aHaBin Paki§taII.

a> The $tummY of the wmual mpcIrt must be publi&bedunder sub-

section (1) within one month after the report is submitted to the Federal
(;overmtettt and should compare the actual performanceof ao Kde.owned
F::)

THE GAZETTE OF P EXrRA,+ FEB, 21 2623

enterprisr dwtagthe flaxacid yaw to which. tIm report. relateswjtb the targets Or
ii;;}.&IWAS set;3 its 8tzc€1nentofcoporate intent fo£ aat &nanci&! year.

28. RaH_yearly report.q i) A $a&owned €ntwprise must submit k:

::Li::It:a
twa-h,niLs
i :7: 1::
:i:E:I::::p? TaI fl1r:} ::faq :r ::rtfc:=;Fr;c t:::wE;;;;;:=
after &l trad of are EtsI half of alat &Bauci& year.

(2) TIle half..yB©ty lepad must €9©tain:

(8) the half yewly anarrci ai rWwt s of the St&t@©W8w! en@nse;

(b) a stanmeat on the client dIe &u@4ww£ entqWi sc and }ts

=ubsi&arieshIVe actaeyedthe bu&inc$$, goals SWi6Bi in lts
sufineat of oorpolate intent for the nrl&ncial. W; and

(Cl h&kde any o&w nxatRr ai at the faderat GovernmentanY 'brea

the st,Re_owned en{erpd£c to ina lucIe.

Ci{A.Hrm.8

SBAR£HOiJ.UNC gIGIITS OF TirE FEDERAI.. GOVE&NNt£NI

29. Role afF edeN (;t>vernmenl.–{I) Subject to aIR Act, the F'daTa

:::i :Hh: : i: = ====t t: IT;}El!Inb==:i t:a 31 ; hiTleRfh:bT:::If;;nh:Ft i=

::VII:::1: 1 t

stale©vvledenterprISe.

{2) Tbc wwlner of exerciseof shareholders rights with =sWt to PE

I:::::::=f t[I do?:=:%=1;Jt1IIo I iI1 1:[]:F:iIi : :c ! :Lea:::TiEn fM qp nsc

(a ) the doseRadonof ale ofac<!rs authodzed to act as stuck!>!ciecon

behalf of the red$ral {javerarrrent at $tatubry nneb8g$; and

(b) any oiher ITlatter BeGGsstay for the €f6Gien{ exercise of shareholder
rights by the Federal (3ovonrrn<Int.

(3 } The provisionsof thR sectionshallhave averddiageffectowt anY

procedureto thccontrary in anY athet $pplicaIRe law-

30. Disclosure by $tateqwned enterprise.'-II)Tbc dinctars and

senior !nhagetaent ofR<getsof a state.owned en£w@sashall &nuually submi!
their assets &nd bcrte£iaauyheld inve$klle11tS andpTOPwtiato the Bam& ang
any c.bgagesthereon shaH be TepOd€d UI the Ba&rctwill$a two weeks of such
 J
( )r' PAKISTAN FEB. 2, 2023

change, 8ubjcct to such rea$onabic re$rdcaQm orI nukiag this iafcrmaljan public
w; nny be imposed by the Boardin its conflict manag€mecapo&by. '

(2) The federal Go\manlent may aired a sMbowned aataptke tu

disclose spwEied kJorautiaa or dxumarB leiaang to the drab of €j;-gut;i
owwd eweMse or itssubsidiary.

(3) TIle Federal {}owrwaaRmust not dkw£ the d8ckxuix of

infomation relating to an hdjadrial if &c individual k idea$6 dIe Bomth;
infoluratiaa.

(4) St&8ectto the termsof a dir@donWIder dds ux.dont a sUb,owned

e&tapd$c 1'laY moRo$f: Ras!'nab ie eanditioos tQ the F$derai Gavemrtiart ott
in aking the iafarn%tinapublic disclosed under dIR secfloat hchdhg 1%dcdons
of its futher cliselostac.

CHAPTER„9

MONiTORING PERFOR&fAN(X

31. Central ruonkodag unit.HI) The Federd Gaveinman shall

establish a central rnonitodn8 unit in the Fhmxn Division whiqx shall also
rwintaia an electronic &iQb asc of the 6rwcial andgperdioaa} perfanxun€ie of
stateownedent@pri ses andthe following information in rtf atian M suk„owned
enterprises, namely'–-

(a) stateinent$ of corporate iraenq

(b) businessplans;

(c) h&tf-yearlyandiiamal repoIt$; and

<d)
any other iafowriation pnseHbcd in the state xrwncd citlcrplisc
rn&aagctucat policy.

{2J Thc @1'ual !noaiK>ang unit $ball undeRake analysis on he

6narleia i, cownerci a1 andoperational perblruan€€of sat6.own& ent6rpdswt
andon the basis of such analysis. guLagt rccorrrlncaMj{urs to the f©derai
Govwn£ncnc oa maKers related to dlc perfolnwrce andgovelrlam.cof 5tatef,
ownad crKeqni ses, inc}udiag-

(a) the overall perfomaace ofsut€oowaederltwpr{us;

(b) performance of stateowned eraaprr ses agoinst their primary
objectives. business gaais, and Wfc>nTan@ targets and
benchmarks:
 OF PAhISI-AN, £XTRA., FEB. 2, 2{}2{

fc) {RVCStalent j& loans nJ andguarantees of state-owned ca@dse s;

rd) the risks associatedwith the stMbawncdent€Q£isc sector that

CD&d aIred the State’s inve£tirnnt ia state©wued cate@seS;

(C) proposals ranting to major Rmsaed.ons by state-owned WRe£pns£is

Is andwhen requiredby the Federal Gavuwncnt;

tfl
:S;:1: 1# 1:k= n : :::1b1prT::I = r=::aTI==1E):o:aL=WRf=:
]i g
pcrfownance;

(gI agraRiella for public service abiig&has as andwhen requiredbY

the Federal Government;

(h) compliance under section 32 by s%k©wng€!eiMlxises;

(i} $weuwnLd CRkrpri sk reform options &E and when required by the
Fed@3} GQvenlme£K;

G) analysiS of th$ content of thc stawrnera$ of €oTporatfe IHtml

bInlnuS plaIn, annual reports andsend'&uMa!npoKs; and
<k) any other manor which the F6dera! Gavenrrnc!itmaYax;uw-

GovCnITtefil

(4} The c,:ned !nonkoHngunit shall publish a.conFolidated npvt} ?1:

he p€t£rLa„ca of ,tat,._owned oliapd$as ann'dIy, with Ute WHovai of th'
Federa} GOventlneat .

o wT1 c( t :: : e r:qII::: 1o:IT;i s ]:1: ::iu iiIit r: I:niT r :Jr::= { \ DEy c : :::i
manito,ing ul;it as requked und@ this Act:

su bI I Ii t t e:InE:: 1: :1::Jc 1:\:: : :h1pH = t::: sh t:=;::HrM:MET ;

.cbd b the case any bef MAin GReen days of such change or knawtaiga of
eat)(

{P) ’'l'hc ecntrai m<!rtHeang unit maY, bY noticein wi:Itnlg tO \ftaIC-

owned e:{;pAir I require a disc los be by the $hte4\wKd.wgwpdse Ilo eoabk3the
celtUni lnorU'torIng ar;itto di set large its fnucdons under this Act.
 E_4:
L&r:

tJ
vA&r 1 ] I'F IE C)AZFi'f£ OF PARIS'FAN, FX=FRAuFEB. 2k 2623 103

(3) A 8t8te-ownedent€rpdsernast c$1ap ly with a noticeunder sub_

section(2) within ten working daysaBu nceiviag it,
CHAPTER-IO

ENFORCE&IENT

33. Enforeem€at of this Act.---<!) The Fdwd (J©vernmaHshall

esBbbsha caam£ itc= of the FederalCabinettQ monitorthe imp tellren&dan of
this Act.

(2) The Di~4sion to which the business of a $ate-owlwdenterprisehas

been aiiocaed under the Rules of Bus&less, 1973 sbaRwqrdiMte bith the
Board of suchsutb©wned enterpriseto nxtn{tntcorupiiur€n with the provisions
of this Act, including, without linitaboa, with Fwect to tho d€velapiMIt of the
business plan, $ta{emaK s of cajUM@ ineM, the maud Iq;art& daleIy
G§t4bi£slWHat of sy&eemsof intwnal coneok of an sau.©wna! aaMpd$t1
appointment of the Chief Exwud\'eOfflow, and IzpaRbig to the €iaud
monitoringunit.

(3) The Federal Governmentmay WHy out its $n}GUO us and powers
WIderthis Aa, except {he powu ta nuke raes or to aplx}int inde{;eadent
£iitwlors) ci£her dire€tIY i£uough or by d€ie@dolltc> one. or axire of its I)iasiorls
Of a body cwparatewhich may be €stabh£tIed by the Fccicrd Gavurxrnent Ax ths
purpose by noti§e&tion in the official garate:

Provided that in case the Federal Govearrneat wtabUshes a body

coRmac !!ten dic functions of the contra! tnorljtQring urit gb&ii atso be
imclcrt8kcn by such body.

34. Fewer to make rula,'---{i) The FeduH GQveawlar£lrBypby

natia€auan in the of:fi,ia! Glade make NIOS to cally OUt the puxpilsw under this
GC.

(2) Without prejudice to the generalityof the for%of IIg lnwusR such
rules May pro\$de for

(a) procaiuc it>r subirassion of v&riou£ reports to the federal

Goygarlnnt andthe in&uacr of;xelwatia} of $aGbKpor8;

(b) }eg&! validitY, farm, ;xwedur6 aud $$amity of the alec:&ollie

daub©e maintainedby the centralmoidn£ing unit; aId
(c) any oalw matter incidental or consequential,
 T' III.. <}A7£TT£ OF PMISTAtiI,fqTM J.BP: 2, 2023_ UXRr i

{3) 1”hepower to ankc rules under this Act shall.be subject to .the
conditionif prior publicationin a In{moot apptoi?date for itlvalug npte$elaaQor$
th&oai -bi ic lui'bli<..3 uld the red&rai Goycrrlmentshall causea report to be
-

publi shed on its web sita, seung out in getlaxl tentis-

(B} the representations Made on the draftmIcs;

(b) the res!ian$e of ae Federal Govemnwnt ta the apa§enta6ons; and

(C:I wbg,reae ruM are made wtb ultra£i€at ions wIIidl in the opInion
of thc Federal GoYenunei it result in the rules or reguiadoas being
sigHS,zany diR€rgut from are drg& publish, in snell manner as it
cc;Isidets appropriate, details of the diatreace.

35. Power to issuedirectives, cheat&rst guideUne&, dc–Tin. {gad

Mecmnent shag have the po\yet tO issuesuch dirK&yes, cod%t pic}elia.es:
cir,.,alaN if not iiications as are necessarY to eaF7Y aUt the palm% undH thR Act
andthe rules Illade ha€wide£.
CHAPTER-! I

){{$CEt.I,AN€OU$

36. Mi$ecnaueou&'--{I> 'NOtwatwundin§anYthia8 &>at#nedat !.ul>

iaw thr ii: 6nlt. aing in force!liaMing in this Act, shalt affect or be dearEd to

; t:::= :i!! i :it :;T : : ri ;1::1 ::1:Q=r1::kfc=; yo:uT:f=8: : : =n :I:::i 8: :::Td :=T:
t

-notice ,madeor issued, any alprovali appoinUIlent OF d®iat&dot!fed.e' anY

,,pcrRM undertaken or direction dvc11 beibte the £'nnaxnnemeat of thIS Ac1

entitY sh&R, if in force be Me tba ca£lvuonaemat of this +ct, mu}£inue t.o be $

;are; a-Id sIla£ihave effect as if tna&s ditected, pasled, given’ t?ken’exT:ute$
;sql:ed 3r £t€rrIC under or in pta$agRee of this Acl On}agS od3ewisc SWciaeat IY
withdr8.\bn by an order of the can€einca anthontY-

][]bII iS drh1\\L !11 a1;F1:1L=:: === :/ q :air;:

1(1H][( = =: \A:iI:IIly ThI : if:: :all:::: ST ;}
dirac of this Act andany co{ditioa cx teRn of setdcIO at emploYnii'tntmadiflcc!
Ayou gi this Act shall not have te&ospMdWappHc&timOF effect

(4) Witttir\ oneyear of the (QIn.ing into effect of this Act,.the FedEral
Goven1Ae’at shaliFin the case qf 81sy inconsistency,initiate legislationto bang„
the laws of st&taorv state xn\-ned eaterprisa$ in ccxrfcnn ity with ale pmvi£iQns of
{his A€£
 iB
PA?alj_ frIIfE G#FFf$, Of PAKI§ rANI WBA+ FEB. gt 2(113

fHp][]i e Pre \rni: : on ::be=; alli:::r={ 1:b1:: f:: ::1::=allIn!!inE= =

:===Uk::: of &is Act’ w it may %Mid#- nW for

Sch€dal bl
EaUdcs to Whoa tbb Law i$ Ertead<,d
IMe Sa:don 3(2))

Entity Appllc8bl€ Provisions

Pakistan R&iIways

Pakistan Post OUcc

ComWaie$ egzbl
C€mvian&s Act, 2{1 IT
SiM:TiM:
Pakistan Agdcd G Storage and S€rvj a9
Coqnr8doi}

Pakistan State Oil

Schedu}&II

Framework for RE:%&£H8Bwda ObBgMoRS

1. 11 le Federal
Go\ernment maY in wddr3g require a commercial
stat€<\uTlec! CnkvFniSe !a:

ta) pa)Tide a $peciHed $cnicc OFpwforu1 specified acaddc$; or

fb) LT&seproqdirlg a swiaal service or IwhaIMggpa,shed indvides

b J &Feesto give €ffact to the propoMl; or

(b)
Hmm#:etmongMat w{haapdMa®HM afae bohr

( aU SC (i )}})
i ) :{E : q E1(1111 ::;1L: : :: [fT:e: Ie;: I:;:: C :::==?if iPL:::) ht:= #E
. \=+
\\--

OF PAKSTAL§xr$4=,i{EH.,L2H

g iv i ng ;; b ct t:) Te :== =L =F::I=BI Bst :i :e( = ; E)I=1:::giT; nJ: b 1::

Bede ObligationAgreementwhich:

t,) must be in watIng;

(b) tRUSt be approved by the f€derql GQvatwat and the f3oMd of the
fornracrcial statedwacci ctdaWn se;
fo the
fc) in dV ifKIM provision &}r &mainE or other KqaurQi’s
ca;uncreial $tata<3wned ealarpa se;

(d) if it pPM& s for thc GOWn{,TGinlSRte-owned cneQdSG to provide

good, or ser\Aces, linust-

the goods Of services. including any pxacular

(i) specify
quantities;

(ii)

(i i ) =1::% ::o vbI:

1 JOb1 b; ::I=!!=:a nt\:c o t:::: : a:Jc;lk : :at :iT ;rE:
monitored and 35sess€ci'

' C)
:::: :: (I : :t:JeT:let+ T:= =:IT t {:()i i::IT:= s::in 1:1hi: i :I: ::Jill !=a:t:
o:\.ned enterprise'

; For the avQidaEe ctf doubt. if the Federal Gov$fwwR dIr:}ts a

 \C/

OF PAKIStAN, EXTRA„ FEB. 2, 2023

'wye c?b§ationsand bri ii not r€quka a public serviceab liga$on ag06£nentas

providedin clause(4).

a. are abi{g&lionsunder a public service obligation agreerIRmt shall

be binding.

Sched td bIll

Statement af Corporate Intent

(see Section8{4))
I N&atc of State-Owned Enterpd sei tba „„Bmg,_ax per, ,'Qq($$$an of
}#„q6©p{ztian PCM#qt $tatu;pJ

2
Inccvporakd/establistn<i
on: jMg{,&&Qrporaqp#p§Rbbdmqxt)
3. Subsidiadesincluded in this $taBnKat of a)rpGtate iDlan

4.
Desc{ipr jon of the mai? bwiness of tIe state_owned etKerpIIst: {as In@
9JXHEB+dive doeROWn{grelevarX SIRI@} ' -""" --"---

5,
; #=T= b% ;nhl=:nJ S gO IIaL][$11 O f t!I e SIErII18Lteqowned
aMPascIIA PXM

6,
Sumo_atY of the petf©maacenw aswe$ andherlchlxlaxrk$against the state„
owned e6tapases bushwwi goal g wd ju primaryobj$1.RiveT{Urge& of the
$W_QqWB@i_£qQr[wisp}

Swrruur}'of the stt&tcgies of th, achic

is and

achic\'urgent of the business goals to also

su;i=M;y risis i=iiiid
The anticipated }f th ent
ncluding bono\LIng by a subsidi;

?meats of i

9. The afcotlnang policies atat the state_ownedenter@sO will apply for

financialwwrds andwporting:

10 Stwlnwy iadic31ive balange sheet aid profit andloss $€ztealalt for the
$tat6-owned enteqxr£c:
\\) \
THEGAZL'r'r'bOF ?AKIX£ Ay, ,y By FA:ff W' % ;$2?

ii.

subs!.$wg

!26 11„ i„.a,„d died„d d„i,r, iian and as ab*d'* pitcY Df !i” 51’te
a\vrted enterprise: ___„ „–„ „.--- -

13.
[H:::::: : :i =:) := { 0:Feb: : e: :: : :: ::::::I::: 1::ttr::: : : ::IP::: 1:: n\t:
$a-gderat G_QVWr@

i4. Any Q&cr matter directed to be in€1ud a1 in this SU@anN bY the i;<:dUal
(3overnrnetxt: _ _

$£lrcdul$-1V
Fit andProper<:dteria
(see Setlion 16)

(a) has the ski iIs, Mwi©dge aBd axpedfnce !!) aTi st the statedjw:ed
cierpdsc Bcheieve iLs pRmaFY andMbm obi a:tms

(b) hasat icuit a Wdu atC ciage<!

fe) i, , hUi,K,sma1 Df ,craB or a f@aM sea ptofc* stand ~{th

to}avaiII seckrra! €qperiemi:c:

{d) is artanciallyliterate;
<=> has na convikdonsor civil ii&billy.eg;

(f) iIas BotH reputHion and character and exttibia high ethical
standards;

<d
Stbn; }[i ::i T:f IS :
! !!IfI)t= T :wf=n J ;!::::: : :;T::::ct: : ::IT :aFISh :::y
(i>
:=: n:: :===g:ubiTt:1:i = O= 1 v; ;S ci ): :1f:::I rL : : I d a: I:he : 1L:=L=
re£,ulatoi';
 ilt tIP -';q'=:i

P&n! I THEGAZETTE Of PAKISTAN.EXTRA.. FEB. 2. 2023 109

G) has not been subject to an Older pawed by the Se€wiuesand

Exchaage Conlmi§sioa of Pakisun or any cater regBla&xV
auaxxity, wahdrawiagor teRising at gmt any RowIsaor apjIn}vai
to him which hasa baring on the capital rnzka; and
(k) does noi suffer from a maM! of ia@reg; this includespoadeal
ofBce hoiaus wtloBIcr or no! in a ]$gi$1a8v6lala

Schedui bV
Matters to be Covered ua{Icr are Code of Conduct
bae SaMoa £9(2)]

I, Tba standards of co&duetfor dimctcx§andemployees, whereby:

(i) compliancewith the fundamentalpdneipi® of Faa>iV andpropriety;

objoctivity1 integrity and hangMy aN GllSUt€d;

(ii) the dinc©n and execadves UfIhOld the reputationof the state owned
entaIIHse by aeating thc generalpublic, institutionalinvestorsmId
atItu $takciloldenwith cauKCsy, iahgfity atid dReicncy, and
alswing service quality;

(iii) the state owned enterprise’s ws€t6 ald resources are applied for the
benefit of the $tatcnwnM entwpd sc in a marinerwhieh ensures
of$ciency and trans Imr men &ad

(iv) quality standardsare foRowed with duediligence and Out suppliers

COIUply with the sundards 8pwi6ed arid are pdd far suppliesor
saUces within the time agreed.
't
14

An effective "an{i-comotion” strategy to adnimize&btu&!or perceived

uwupda& in the state owned enterprise,hciudiag without }knihtiat\ with
respect to:

(1) the active promotionof ethical behaviourandfa€Hitadngreporting of

unlawful or unethical behwi0%

(H) the circunwtance s in which directors andemployees may accept gifts

andother !>anats, including wp<Rting andrnordiw tbaso giGs and
baneBts;

(iii) the use by dinG&>n andemployeesofftIe resources of the stateowned

enterprise,including phones, vehicles, andother pmiwrty;

(iv) rcWladen of business have i, including its mass-over with personal

travel;
/ -\\j

FI{t GAZETTE Of ?jWSTAN,,g!.'f}tl, fEB. 21,2023

(v) Mucklg or diaMat@ irnproper hHucinc on din.eton and

' ’ emljjoycc,sin their posilian as a <Urector tX cmploYeeof the state-
owned altcrpnse;

(I H{ : I }}: ::KLIr:J f: ::::::::1:q)I?a;})AC:iiI::::::LsE) ; # :iSHiS : inK::HaS

col}ditiang af serviec.

{ \lil col@Hancewith Bic !aw andthe gate*oKrrcd aKupd§c’s intcTlai

ide; and procedures relating to WbEc pNwulelaeat\ tI

;c;;}ati:'ns1 burchasing aid keLlUcd sUruiardS, when ciaUng wIth

suppliers of goods andservices; and

(VIII )
aaang in and holding Me,+ wearide st or other financialinstruments
by directors and9aploYws.

), Regal3&xi of conflicK of inKresk in€audiag pFOGGdWHfp’ identlfiWlc’n’

leF;>ning# andresolvinga ooafhct of interest;

ExotanoHan.___For 'the purposes of tIITS clause a perso& shall be deen led !?

}li'/e an interest in a m&acr if he has anY stake. p€cwli&Y or othe£wlsc: 11\

::\::P cT:\ : u: : : iT!:j : : :ITeT;b:Ibf::iF u:: : I : : tE::11isn{ : : 1: : : iFjjll ;

C 1:

,_a,lsider and dccidc an; ntatter inwaRiaUyor to B{\’canY wIv.iccwithout

biast ably reasonably be regarded as impai{cd;

4. The use and disclo§u7e of iaforwraM3n by dha:t<'rs nod WWIoYecs;

’( M,ma qjng brcache£of the code, including moQituia{{ complianceand

reporting blvachas; and

{; 1
Ally a&er meet reicv,Int to ensuring a high staxi aId of Wyelnance within
tht: state-rn+ned enterFn se .

Schedule-VI
Details to be Subinitt€1d in the Ann-ial RepoEI
(see Section 25)

1. Name of State-OwnedEatefpfise:
iXZorRo[?_UP_4 or re!€v©$.S@tPtq3

jnaoqwr3te&eStab&shed on: {.d©k9£!p£Qrm©bq&MUama}

3. St:bsi&ariesincluded in this statement of corporate iltICItt:

 lb
\ THE OF PAKigrAN, EXTRA. FEB. 2. 2023
V

4. The auditedfinancial statementsrequbedby this Act for the haandd ylw

to which it relates:

5 The nlxrrt of the auditor fm those 6nancial staem£nts, brcludiag

complialm with this Act:

6. A rwiew of operations during de fuIWid yur of the state4wned

catapdseandits subsidiada andthe mwh of ILe opaztjotu:
7, A nW of the extent to which are W&ownedmtupbe ud is

wbddiaHa have actawed the oukoae$ @eMod ia &e -swzmaat of

corpamtnintent for the financialyen

8. A st&telllentof the dividend or distHbudoapInt,dw b be pM by Hbo RW_

owned nRalw Lsato an Statefor the 6mlRiaI year
9. Details Qf 81'y Wblic SHVic' obUpdm ac aNhcabl, &Biag &,
BandaI year, including:

i. the aoR of the public guan or services refund wM ac

agreement; and

11.
the rwenue reaived by or payable to aa stateownedent£rpri ge under
the agInnnat

10. IN:taRsof ally signiacaat changes in- the affaks of an stateowned

cataptisc during the 6aaadal years

11 Details of any mann or cirwa6tmccuk alg sM the end of the hm®ial

Year tInt has d®6aatIY affcacd, or may 8igui6caatly 8frec& the
OWdau of the stateowned eanrprin ia futBr; bmachl yens:

12. Details of anY brucb of tbc axle of conduct of du stateownedcatelptisc

during the finmcial yun

13. Details of any irfonmdon which is omitted aura the uuud report dong
with re&sons for such antission.

14. Any othermatter that the Fednal Governrnent arecu (he sheowned
caerpd8cto includein the tq>art.

TAHIRHUSSAIN
SeaB&IFF.

JHL][]ab IE:E;rI&iIIi:?ggh:mc;iT:W:n:)mM#WHL
iI:iF::f3:?1;F::

\,