ISLAMABAD: A major uproar has erupted after reports revealed that the CEO of a state-owned enterprise (SOE) received benefits worth more than Rs355 million in just 32 months. In response, Prime Minister Shehbaz Sharif has formed a high-level committee to address loopholes in the governance of SOEs.
The Cabinet Division issued a notification on August 15 confirming the committee’s mandate. It will review and streamline the appointment process of SOE boards and ensure tighter oversight of their decisions.
The issue sparked uproar after The News exposed details on August 8. The report highlighted how the CEO, appointed in 2022 with a monthly salary of Rs500,000, secured huge additional perks through legal loopholes. These included Rs56.3 million in fixed bonuses, Rs27.5 million in performance bonuses, and Rs52.3 million taken as self-approved payouts on his last day in office. This included Rs28.8 million in severance pay, even though he resigned voluntarily.
The report also revealed that Rs58.6 million was spent on 23 foreign trips to countries including the UAE, UK, and Australia. Many of these visits were deemed unnecessary for the SOE’s operations.
The controversy has raised fears that billions in taxpayer money may be at risk across other SOEs. Officials say the SOE Act, 2023, which was designed to improve governance, has instead been misused by management and private directors to gain unchecked authority.
The newly formed nine-member committee, chaired by the Minister for Establishment, includes senior secretaries from key ministries, the FBR chairman, and private sector experts. Its tasks include reviewing gaps in the law, ensuring transparency in board appointments, and regulating CEO pay packages.
The committee has three weeks to submit its findings. Officials warn that without reforms, similar cases could continue, fueling more uproar over misuse of public funds.
