Reconstitution of TCP board finalised

The Board of Directors of the Trading Corporation of Pakistan is likely to be reconstituted soon, as the Ministry of Commerce in consultation with the Cabinet Committee on Restructuring (CCR) has finalised a restructuring plan. Sources told Business Recorder on Wednesday that under the restructuring process number of directors of TCP board will increase from five to 10 and this would help to further improve the corporation's performance.
In the light of a report submitted by CCR of public sector enterprises, constituted in a special meeting of Cabinet on December 16, 2009, the federal government had decided to reorganise some eight public sector entities with a view to revive financial discipline and good management.
The federal cabinet on April 12, 2010 announced the restructuring of Pakistan Electric Power Company (Pepco), Pakistan Railways (PR), Pakistan International Airlines (PIA), National Highway Authority (NHA), Trading Corporation of Pakistan (TCP), Pakistan Storage and Supply Corporation (Passco), Pakistan Steel Mills (PSM) and Utility Stores Corporation of Pakistan (USCP) as these entities were gobbling more than Rs 250 billion annually. Under the restructuring programme, the federal government recently reconstituted the board of Pakistan Steel and now it was going to reconstitute TCP's board.
In pursuance of Cabinet decision for the restructuring of state enterprises, the TCP board in its meeting held on April 5, 2010, had already decided to enlarge its current composition from five to 10 including representatives from private sector to make it more responsive, sources said.
TCP's management forwarded its decision to the ministry of commerce in April 2010 and now ministry in consultation with CCR has finalised the restructuring of TCP, they added. "The summary for the appointment of new directors in TCP has been forwarded to the Prime Minister Syed Yousuf Raza Gilani by the ministry of commerce," sources said and added that summary was expected to be approved by end of this month following which the TCP's board will be reconstituted.
Presently, TCP has one chairman, five directors and one representative from ministry of commerce on its board. However, there is no representation from the private sector and under the restructuring process two or three directors from private sector would also be included in the board of TCP.
Sources said with the reorganisation of TCP's board, policy-making of the state-run grain trader would become more comfortable and it would also help improve the commodity operation. It may be mentioned here that as per Cabinet decision restructuring of these public sector institutions was to be completed by April 30, 2010. However, the restructuring process was delayed due to some technical reasons, although the CCR was rapidly working for the reorganisation of boards and restructuring of these entities to make them profitable.