‘Illegal’ summary moved for KP BOIT CEO’s extension

PESHAWAR: Industries, Commerce and Technical Education Department of Khyber Pakhtunkhwa has moved a summary for the extension of service of Hassan Daud Butt, the chief executive officer of Khyber Pakhtunkhwa Board of Investment and Trade (KP-BOIT)

However, the KP Board of Investment and Trade Act, 2015 does not mention appointment for a second term or extension in the existing term. It has been claimed that the CEO managed to bring investment worth approximately $9 billion to the province during his tenure, and as such a case for his extension may be placed before the cabinet for approval.

Butt was appointed for a tenure of three years, which expired on August 22, 2022, but the department has not advertised for fresh recruitment. According to documents available with this scribe, instead of initiating the appointment process for a new KP-BOIT CEO, the Industries, Commerce and Technical Education Department has moved a summary for the extension of the incumbent CEO before the expiry of his tenure.

The department issued a letter on August 19, 2022, which says, “In the persuasion of Section 7(3) KP Board of Investment and Trade Act, 2015, the incumbent Chief Executive Officer shall continue to hold office till his successor enters upon office or the decision of the provincial cabinet.”

Similarly, the Industries, Commerce and Technical Education Department secretary moved another summary on August 16, 2022, for the extension of the chief executive officer’s service.

The summary says, “Hassan Daud Butt was appointed as CEO KP-BOIT in August 2019 for a term of three years which will expire on August 22,2022. He strengthened the once dormant organisation with complete dedication and hard work and successfully portrayed the province as a conducive and favourite investment destination for investors. The important tasks and initiatives undertaken in the last three (03) years include major private sector investment, reforms undertaken for creating a business-enabling environment, and financial achievements. The CEO KP-BOIT was able to generate investment worth approx. US$8-9 billion. He has created a roadmap for the Ease of Doing Business initiative in the province and provided policy support to all departments.”

The summary said that the CEO was appointed for three years but the KP BOIT Act is silent with regard to extension in the CEO’s tenure. The department has proposed that a case may be placed before the cabinet for approval.

The Establishment department, instead of raising objection, said section-7(1) of the KP BOIT Act, 2015 provides that the government shall appoint a CEO, on the recommendations of the board.

Although, no term of office is defined in the Act, the incumbent was appointed for a tenure of three years, which expired on August 22 this year. Moreover, the Act does not mention an appointment for a second term or extension in the existing term.

The case has been examined and it has been observed that the CEO is appointed upon recommendations of the board but in this instance, no recommendations have been annexed. Therefore, the administrative department may submit names of candidates duly recommended by the board along with the incumbent for consideration and decision.

One of the officials told this scribe that the $9 billion investment claims are baseless as Butt could not attract any investment in the most naturally endowed province of the country during his three-year tenure. He was hired on a hefty salary package of one million rupees per month with other perks.

Secretary Industries, Commerce and Technical Education Department Saqib Raza Aslam told this correspondent that a final decision has not been taken yet, as three options were being considered by the KP-BOIT board. “The board will decide whether to re-advertise the post as per the act or appoint a government officer from a panel of serving officers or appoint the existing CEO, but his appointment will be through open competition,” he said.

Sources close to Butt told this correspondent that during his tenure, he managed to bring huge investments to the province. At least 49 MoUs were signed at Dubai Expo during the KP Investment Conference held on January 16, 2022.

As a way forward, the KP government has constituted Investment Commission and Investment Committee to follow up on the MoUs and facilitate the investors by developing investor-friendly regulatory regimes and ease of doing business.

Moreover, an investment event has been organised in Peshawar, wherein all investors (who had signed MoUs) have been invited along with local and foreign investors and business leaders.

KP-BOIT is making efforts to ensure an enabling environment for investors for which an investment relationship management system (IRMS) has been launched and all relevant government departments have been digitally connected through the KP business portal.