HESCO nominations still pending: PD to appoint SEPCO BoD after delays

ISLAMABAD: The Power Division is set to place a new Board of Directors (BoD) for Sukkur Electric Power Company (SEPCO) after a prolonged delay attributed to political factors, while nominations for Hyderabad Electric Supply Company (HESCO) are still not in sight, well-informed sources in the Power Division told Business Recorder.

The Power Division has faced sustained criticism for failing to appoint new boards for the two Sindh-based distribution companies (DISCOs), both of which continue to rank among the poorest performers in terms of losses and recovery.

HESCO and SEPCO operate under the administrative control of the Ministry of Energy (Power Division) and are governed by the State-Owned Enterprises (Governance and Operations) Act, 2023, and the State-Owned Enterprises (Ownership and Management) Policy, 2023.

READ MORE: Body briefed on performance of Hesco, Sepco

According to officials, the three-year tenure of the boards of both companies expired on September 2, 2025, necessitating the constitution of new boards in accordance with the SOE Act and policy framework.

These stipulate that the number of directors on each board must range between five and eleven, with a majority being independent directors.

The Board Nominations Committee (BNC) of the Power Division—comprising the Minister for Power (Chair), Secretary Power Division, and Additional Secretary (Corporate Finance), Finance Division—met on January 14, 2026, to initiate the reconstitution process in line with the SOE Act, 2023, and SOE Policy, 2023.

The BNC, following the procedure outlined in Section 10(3)(b) and (d) of the SOE Act, invited and identified candidates from multiple sources, including the databank maintained by the Pakistan Institute of Corporate Governance (PICG). After reviewing numerous profiles, the committee recommended names for independent and ex-officio directors for both HESCO and SEPCO boards.

Based on these recommendations, a summary was submitted to the Prime Minister on February 1, 2026, in accordance with Cabinet Division guidelines. The Prime Minister approved forwarding nominations for the SEPCO board to the Cabinet Committee on State-Owned Enterprises (CCOSOEs) for consideration and approval. However, no nominations for the HESCO board have been approved so far.

The Prime Minister’s Office has also directed the replacement of Zahid Pervez Mughal with Sardar Azad Khan, with the revised nomination to be placed before the CCOSOEs following endorsement by the BNC.

The proposed composition of the SEPCO board includes: Ghulam Mustafa Laghari as Chairman; Faraz Shaikh, Sanan Islam Sheikh, Zafar Iqbal Sobani, Imran Husain, and Naween A. Mangi as independent directors; representatives from the Power Division and Finance Division; one technical expert from CPPA-G; and the Chief Executive Officer of SEPCO.

Sources said security clearances of the proposed candidates have been obtained from relevant agencies and are clear.

With the CCOSOEs having approved the SEPCO board, the Power Division is expected to seek formal approval from the Federal Cabinet shortly.

Copyright Business Recorder, 2026