The federal government has approved changes to the boards of three state-owned organisations, including National Engineering Services Pakistan (NESPAK), Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), as part of efforts to strengthen corporate governance and improve institutional performance.
The decisions were taken on Tuesday during a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs), chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division.
NESPAK, HESCO and SEPCO Board Proposals Approved
According to a statement issued by the Ministry of Finance, the committee considered proposals concerning the appointment of a chairman or independent director at NESPAK, the reconstitution of HESCO’s Board of Directors and the appointment of an independent director to SEPCO’s board.
Following deliberations, the committee approved the proposals.
The meeting was attended by Federal Minister for Science and Technology Khalid Hussain Magsi, along with relevant federal secretaries and senior representatives of various ministries, government divisions and regulatory bodies.
The approvals are part of the government’s broader efforts to improve the management and oversight of state-owned enterprises, particularly electricity distribution companies.
Finance Minister Emphasises Competence and Experience
During the meeting, Muhammad Aurangzeb stressed that government representatives serving as ex-officio directors on the boards of state-owned organisations should have the appropriate qualifications, professional experience and understanding of institutional operations.
He said officials appointed to these positions must be capable of effectively representing their respective ministries and divisions.
The finance minister’s remarks highlighted the importance of selecting competent representatives who can contribute to decision-making, corporate oversight and institutional governance.
Government Continues Reforms in State-Owned Enterprises
The latest decisions follow earlier government efforts to restructure the boards of publicly owned electricity distribution companies and strengthen their administrative performance.
In May 2025, the government reconstituted the boards of several power distribution companies, while arrangements concerning HESCO and SEPCO were still being finalised.
The reforms came amid longstanding concerns about financial losses, operational inefficiencies and governance challenges within the power distribution sector.
In June 2024, the government had also moved to replace the boards of loss-making electricity distribution companies amid concerns about poor management and political influence.
At the time, the Power Division projected losses of approximately Rs589 billion across 10 government-owned distribution companies during the relevant fiscal year.
The government has maintained that stronger and more independent boards are essential for improving accountability, strategic planning and operational efficiency across state-owned organisations.
The latest approvals represent another step in that reform process, although their impact will depend on the effectiveness of appointments and the implementation of governance measures.
Source: Ministry of Finance and Press Information Department (PID), November 10, 2026.
