Uproar over CEO’s Rs355m package: PM sets up high-level body to review all SOEs’ working

ISLAMABAD: In response to The News story revealing that the CEO of a state-owned enterprise (SOE) amassed over Rs355 million in benefits within 32 months, Prime Minister Shehbaz Sharif has constituted a high-level committee to overhaul the governance framework for SOEs.

The notification, issued by the Cabinet Division on August 15, mandates the committee to review and streamline the appointment and governance processes of SOE boards to prevent such abuses of power.

It is feared that billions of rupee from taxpayers money are been mis-used by top managements of SOEs for their personal benefits. An official source said that the SOEs law, which was amended on the advice of the IMF, is being misused by SOEs top managements as was reflected in The News story.

On August 8, The News exposed how the CEO of an economic ministry-affiliated SOE, appointed in 2022 at a fixed monthly salary of Rs500,000, exploited “legal loopholes” to draw exorbitant perks. The board, which recommended his appointment, granted him allowances, bonuses, and benefits totaling Rs355 million, including: Rs 56.3 million in fixed bonuses; Rs27.5 million in performance bonuses; Rs52.3 million was pocketed through self-approved payout on his last day, including severance pay (Rs28.8 million) despite resigning voluntarily; Rs58.6 million was spent on 23 foreign trips to destinations like the UAE, UK, and Australia, many deemed unjustified for the SOE’s operations.

The report highlighted how the SOE Act, 2023, intended to improve governance, instead enabled unchecked authority by managements and private-sector directors. Chaired by the Minister for Establishment, the nine-member committee includes secretaries from Finance, Law, Commerce, Power, and Cabinet divisions, alongside the FBR chairman and private sector experts. Key tasks include: Reviewing legal gaps in the SOE Act, 2023, and nomination processes; Eliminating delays and bottlenecks in board appointments; Ensuring transparency in CEO pay packages, board decisions, and compliance; Proposing reforms to prevent misuse of “independent” board powers.

The committee has been asked to submit its recommendations within three weeks. Official sources cited in The News report expressed alarm over potential similar abuses across other SOEs.