PSEs under MoF control: Dar obtains powers to appoint members of BoDs

Finance Minister, senator Ishaq Dar has reportedly obtained powers to appoint Members of the Board of Directors in public sector organisations falling under the administrative control of the Finance Ministry thereby adhering to the Supreme Court's verdict that the Cabinet's consent is mandatory in letter though not in spirit.
Well-informed sources told Business Recorder that the Finance Minister approved the summary sent to the cabinet to empower himself to appoint members of the board of directors.
The federal government has a number of statutory bodies and companies set up under the Companies Law with the power to appoint their members of the Board of Directors (BoDs); the power that has been typically exercised at the level of the concerned Minister responsible for the organisations.
Supreme Court of Pakistan in civil appeals (1428, 1436 of 2016) has held as follows: (i) Neither a Secretary nor a Minister or Prime Minister is the Federal Government and the exercise of a statutory power exercisable by the federal government by any of them, especially in relation to fiscal matters, is constitutionally invalid and nullity in the eyes of the law. Similarly, budgetary expenditure or discretionary governmental expenditure can only be authorised by the federal government i.e. the Cabinet, and not the Prime Minister on his own; and (ii) Rule 16(2) which enables the Prime Minister to bypass the Cabinet is ultra vires.
Secretary Finance Dr Waqar Masood, who is retiring early next year, maintains that with the SC ruling, it is no longer tenable to use such power of the federal government except in the manner prescribed in the decision. However, waiting for approval of the Cabinet for such routine matters would slow the decision-making process besides consuming precious cabinet time.
The summary submitted to the cabinet empowers the Finance Minister to appoint members of the board of directors of all organisations under his jurisdiction as under Rule 15(g)(h) Schedule V-A, the heads of these organisations are appointed after approval of the Prime Minister.
Finance Ministry has proposed that the Cabinet should authorise the Minister for Finance, Revenue, Economic Affairs, Statistics and Privatisation to appoint the Board of Directors of such organisations as are under his administrative control.