State-Owned Enterprises (Governance and Operations) Act, 2023

2. DcliEilioni-I! lhis Act, unless lh€fc i! alrylhing r€pu8osr1t in the subjecl or context- (r) "aniclcs" m€aos lhc articlca ofassciatiotr ofa compa[y; (b) "board" means- (i) in ttre ca!. of a corDpsn, thc boad of directors of tlrc coDpaE ; arrd (ii) in lh€ casc ofa starutory statc-owEcd entcrprise, the SovemiDg body eryoutered to ove6€E or mege the atrairs of such statutory body or aotarprise. (c) 'thief executive offic€i' means- (i) in the casc of a cornpany, lhc chicf exec'utive o6ccr of thc co@any, by wbatevd Dalne c{lcd; ard (ii) in tic casc ofa statutory ststc-o\r'Ded cDterprise, rhe person crnpowcrcd to Dndertate the firnctions of thc chief o(ccutive of6cer, by whatever n.ame call€d u er thc rclevarl law- (d) "contolled by lf,c GovEltraaf' means- (i) in the casc of a conpany, if the Federal Governdcnt dtecdy or hdirecdy hrs ltc right to appoint a fl4jority of dir€ctors or coDt:ol over managenrnt or policy decijiots, exercisable by a penon individrully or tkough any person acting in concert, P^RI I I THE GAZETTE OF PAXISTAN, EXTRA,, FI]B,2,2023 8l dtecdy or indirE lly, whether by virtuc of Federal Govemrncd sharcholditr& DatragqEcnt right, sharcholdcn agre€rnenr, voting agEement or othcni/isc; (ii) in the case ofE,l entity created by a! Act of lhc Majlis-e- Shoora, if lhe Fedeml Govemment has the power (o appoift a majority of thc pclsons who are dircctors of thrt cnrity or otherx.isc has thc powcr to dct.rEioc the outconc of decisions about the cntity's n.nrgcdeat or fDancial atrd opqatiDg policies. (e) "comm€rcial stai€-owncd cnterprise" means- (i) a statc-own€d enterprise establishcd under the Colrparies Act, 2017 (XD( of 2017) other than cor4anics liccNcd und€r section 42 ahereof; or (ii) a statc-owned entcrprisc lbat geoeral. thc majority of its rcvcnue from rhe sale ofgoods or servic.s o! a coEbioation of goods atrd servic.s on , comercial basb. (0 'tompany" means a company incorporatcd under the Companics Act, 201 7 (XD( of 2017) which is a state-owaed ente4lrise; G) _direc{of mcan! (i) in Oe case of a company, a dirr$or appointed uDd.i the Companies Act 20l7 Q(D( of20l7); and (ii) in the case of a slatutory state-owrcd enterprise, a mcmbcr of thc goveming body dcsignated udcr thc applicable law. (h) 'trcmince dtcctoi' me.ns- (0 r dilector who rcprcscnts tha ldard or PtoviDcial GovcrmEnq and (ii) a director *llo r@ras.ltats alotb€! stat.-owned enlcrprise (i) 'lndepodcnt directol' m€3rs a direclor *lm E Nt e. s-ofrcio director aEd is not disqualified under section I I ; (j) 'b1*11od by lhe Feder.l Covemhent" means- (i) ir thc casc of a conpatry, an ertity in wldct thc Fcderal col€mmcnt dicctly or indirecdy holds lifty percent or more shareholding; and 84 THE GAZETTE OF PAKISTA}i, EXIRA,, FEB, 2, 202] lP^Rr I (ii) in the case of a statutory state owned enterprisc, an etrtity which has been established through str Act of the Majlb-c- Shoora. (k) "pr€scribed" means prescribed by nrles rn de under this Acl; (l) "public servic€ obligation" means the specified servicc or activity re{brred !o in a public service obligstion agreeme ; (!l) "public service obligation agre€med" mcalrs m agreclncnl t.fared to in Schedule-ll bctween lbc l'cdcral GovemrDmt and a cominercial srrtc-ow'r.d cnterprisc for the undcrt ting ofa public scrvic€ obligation by the c.mmercial star€-owned entcrprisc; (n) "schedule" deans Schedule made under this Act: (o) "state-ovmed cntcrplisc" meors a corpont€ My falling witlin the scope ofsection 2; ind (p) "statutory slatc-o\r,ncd enterpris€" mcans a state owDed cnterprise eshhlishqt under d Act of Parlifnent

3. Scope rnd rpplicrtior.-{1) Notwithst DdiEg anylhinS contained in any othcr law for the tirnc being in force, this Act shall have application io all public s€ctor coEpanies as defin.d in sub-s€ction (54) of section 2 of lhe Conrpanics Act, 2017 Q(D( of 2017) and ofier corporat€ bodies *,hich arc owned atrd coEtsollad by the Federrl Gov€mment including those establishcd under special enactnents but shall not apply to- (a) regulatory bodies which are onpowcrcd to issue liccnc.s, graot lrrifrs or undcrtake investigatioB ard io$iries with rEgard to non- coDpliance ofthcir statutory firctioDr and powen; (b) lubjcct to sub-scction (2), cntcrFis$ providitrg health snd cducatioml screices snd facilitics; and (c) subject to th€ cnteria lard dolxa in lhe state-owncd enlerprise owoersbjp and manlg€ment poliry, sny stat€-owtrcd cnlcrprise specitcally excluded Fom the codpl.tc or partial application of lhis Act by the Fcdcral Goverment for reasons to be rcconlcd ar<l by rotificatiotr itr tbe official Gazcttc, provided that such cxchsior does not uldcfidnc the objectives and principtes ofthis Act. (2) The application of this Act may bc cxtcnded by th. Federal Governmcnt cither completcly or partly to any cntity specified in Schedule-I, P^RTI ] THE GAZETTE OF PAKISTAN, EXTRA,, F88.2.2023 il5 including without lildtation ro eotities which the Federal Government does not bave ownership in but exocises conrollher€on: Providcd thal thc Fcdcral Govemment shall have the power to ametrd Schedulel; CI{APTER.2 STATE.OWNED ENTERPRISE MANAGEMENT POLICY AND PRINCIPLES 4- State-owned enterprise ownership rnd murgement policy.- (1) The Federal Goverrment shall, at le3st once in every five yea$, FeparE ard prescribe a state-owned crterprise o*aership and maDagemeDt policy for giving effect to the objectives ofthis Ac! namely:- (a) that the shreholding responsibilities of the Federal covernment wilh respect to its state owned enterpris€s arE claiited; (b) that the Federal Government acts as an inlormcd and activc shareholder; and (c) that fiscal nsks associatcd with state ouned enteryrises are effectively managed: Provided lhat tle frst policy to be developed under this Act shall be notif€d no later tlrn orc year from the coming into effect ofthis Act: Provided further that in the dev€lopment ofpolici€s under this sectioq the Fedeml Goverffnent rnay seek input and assGt2nce from the relevant stakeholden, including any regulatory body, as may b€ requifed. (2) The policy refened to in sub-section (1), shall provide for, (a) the criteda and rationale fo! ownership, retentiou and establishse of a state-owred entarprise by the Fcde!'al GovemmeDtj (b) thc role of the Fedcral Govemmmt in the govemance of s{ate- owned enterprises; (c) the mamer and prccedure for exercising the nghts of the Federal Govemment as shareholder ir slate-owned enterprises, including, without limitation, rnatters enumemted in sub-section 2 of section 29, subject to the principles laid down in this Act; 86 THE GAZDTTE OF PAKIST,\N, EXTRA, FEB 2.2023 [l'ARr I (d) clarificaiion of the respeclive roles and responsibilities of any Divisior of the Federal Goveme , uder the R es of Business. 1973, Boards and other stakeholders involved in the inplementation of the Ownership Policy; (e) the role of and manner of operation ofthe cent"l monitoring unit; (f) the form and proce&re for management aDd use of the electotric state-owned enterprise database, i4cluding right of access by the public; (e) a tumewo* for ensuring competitive neutality ofdle Stare with resp€ct to state owned enterprises; (h) a public secto! obligation rDaiagement tamework; (i) process of monitoring and mamgiag contilrgeDt liabilities of statc- owned €nterprises; (j) guidelir$ for board nominatioDs committee while exercising its functioDs under section 10, including with respect to diversity and adequacy of board compositiorr (k) the process for evaluating the frlormanc€ of d.-ofrcio ad independent dircclors: (1) the cooting offperiod for the appointment of itrdcpcndent directors; (m) the mamer of regulation of conflict of intcrcst of directors, including prcc€dures for identificatiotr atrd reporti4 of direct ar1d iodirect iiterests of directors atrd resolving any coDIlict of interest thereon; (n) the crileria for excluding a state o\r.o€d enterprise ftom the ambit of clause (c) of sub-s€ction (1) of section 3; ad (o) any otller rDatter required to give effect to the provisions and obje.tiv€s ofthis AcL (3) Thc policy prescibed under this section shall clariry the manDer of giving cffect to the hstitutional arrangenrents whereby roles and respoDsibilities have been assigned under this Act, in padicr.tur and without limitation (a) the maoner iD which the Board shall undertake its responsibilities with regard ro- l I'aRr I I THE GAZETTE OF PAKISTAN, EXTRA., FEB.2,2023 (i) development of a business plan ard statemcDt of corporate intent lmdel section 8, including withour lmitatioD the d$Elopment of performrnce indicators and specific targets ?nd tlle disclosue ofpublic sewic! obligatioB and targct ar€ai; (ii) appointnen! ofchiefexecutivc ofticer under section l8: (iii) ensuring the d€velopment of intemal systeds of contol under sectiotr 20; (iv) establishmetrt of an audit comrnittee utder section 2 ; 1 (v) timely pr@aration and pubtcatiotr of the Emrcial starement, annurl report and hdf-yearly r€?ort u ler sectiotrs 24 to 28; (vi) timely submissiotr of tuformation to the centsal monittring unit under section 34 $rd (vn) elsuriog the iniegrity of the iDfonnatiod submitted to the central modtoriDg unit. (b) the mamer in which the central monitoring unit shall udertake its fundions witt regard !o- (i) maintaining an electonic databas€ under section 3 ; 1 (ii) pmviding anabsis uoder sub-sectioB (2) of section 31 to the Federal Gol,ernment or its steditrg mmmiree as tle case may b€; (iii) issuing periodic reports to the Fe-deral Gov€mment or its staEding coDrmittee as the cale hay be, and making such reports public, under sub-section (3) ofsection 31. (c) the manner h which thc Fediral Covemmed shafl undextake its functions \r,ith regard to- (i) prescription of the state-o$,ned enterpflsc ownership and matragemert policy uder liis sertiotr as well as other rules to be prescribed uder section 34; (ii) rol€s and procedurE of the standing committe€ to be established uader sub-section (l) ofsectioD 31; (iii) the role ofthe Divilioa to which the business ofa state-o*,ned enterpds€ has been allocated under lhe Rules of Busin€ss, 1 973 with r€spect to- THE GAZETTE OF PAKIST N, I]X'[RA., [88.2,2023 [IART I (A) co-ordinatiog corpliancc with tbis Act by the Board; (B) providing s€ctoral policy suppo( ird guidadc. to the state- owncd .6tsrpris. to cnable it to cotrply with its objectives u[dar sactiou 7; and (C) providing s.ctoral policy s\lppon to the Fcderal Cabinet or ils standinS comrnittac a3 th. casc firay bc {.ith Esp€ct to the objectives oftbis Act. (iv) the rolc oftbc Fcdcral Go\qnDant or its nalding cornmittcc ss th€ c€s€ may be, rcgardinS thc cxercise of sharcholding rights, usc of analysis and r.porb submitted by lhc censal monitoriry uoit ald the geD6al ovcrsigtt of the Boards under dis Act. i. Generrl principl.s.-The provisions of this Act, the stat€-o*Ted eiterprise rnanagem€nt policy, and any rulcs made hcrcund€r shall aim to firther the followiog geDeral principlcs, namcly: (a) thc Finciplc of prud.dt end cfficiart mrn.gerrent accordiog to which (i) a coDEcrcial stat.-owncd cDterFisc must opente on a cooDrcrcial brsis that is cffciad aad profitable; afld (ii) a ndr-ovlad crtriprisc Eust oD.r'ate cfrcirndy atrd efl€c1ivcly. O) the principle ofmeasurable pcrforEa[cc accorditrg to which a statc- owned enterpris€ must identify its b8iness 8oals; (c) the principle of responsible manaSement according to which the matrageme of a ststc-owned enteryrise must bc mmpeteDt, honest and accountzhle: (d) th€ principle of Eensparent pcrfonnrnce accordiog to which a state- owacd ontcrpris. mun rcpo( its psforEarcc fuUy, traDsparcotly and timcously; (e) the prilciplc of monitorcd perfomrslcc ac@rding to which a stare- owrcd catdprirc Eust bc subj€cr to rigorous monitoring and r0 the principle ofcomFririvc ncuirality;and P^IT I ] THE GAZETTI] OF PAICSTAN, EXTRA., FEB.2,2q23 89 (g) the principle of protectiotr of minority shareholders, according to which the govcrEmcnt and lhc star.-owrci entcrprisc rlrsr rEcognis€ thc rights ofdl shar.holden and cnsul€ all sharcholders arc te-ated equilably and have equal access to corporate idomrstior and lhe ability to DomiDale direcrors itr a Eanncl corruDensuate wi$ thEir sharcholding intcrest. CHAPTER 3 PRUDE\TT AND EFFICIEN'I' MANACEMENT

5. Sound rnd prEdert ErD.gaE.Dt-{l) Every stat€-owtrcd cDt€rprisc sMIl underlake ils operatioDs io accordance wilh lh. critqia for sound and pnrdent management, lrmellx- (s) thc busircss of thc slat€-or,ncd cdtapri.sc is crnied on wit! intcgrity, objcctivity, due carc and tbc professioDal skillg appropriate to lhe natulc atrd scalc ofits activiti$; (b) each independenr dirrctor aod chicf executive ofiicc!, by whatcv€r nainc called, of the state-owned €ntcrprise compli.s with lhe prEscribed fir aEd propcr criteria; (c) tho statc-ovrDcd ederpris€ is dirrct€d and maragad by a sulfrcie nun b.r of p.nons who ,!e fi! ald propcr p€(soos to hold thc positions wfiich lhcy hold; atrd (d) the state-oMcd enterprise mai ains ad€quate accountirg and other records of its business. (2) Accounting snd olher r.cords shall not be r.gsd€d as adequltc for the purpo6es ofthis prcvisio! utrloss they (a) enablc lhe business of the statc-o*ned enterprise to b€ prudeDtly managed; (b) enable the stat€ oMcd cnterpris€ to comply with dtc obligadoDs imposed by this Act; and (c) comply with ell profcssional strDdrlds snd promdrcemcots of rclevart prof.ssional bodi.s ,3 applicable in Pakistar

7. Objectiv€s of statc.oirred olterprirer--{1) Thc pdnary objective of a statc-owrcd cnterpisc shall be to op€rlt i.a an c6cietrt mr!D6, achieving the objcctiv€s contained ir! and acting in accordanc€ with their respectivc Acts or articles arld memorandum of associatio!, as the case may b€. THE GAZI.- l r'l-- oli PAKTSTAN, IjxlRA,l'EB.2. 2023 [P^RTI (2) StatE-owncd Enterprises, in undertaking their prioary obiecdves, shall havc rcgar4 amongst other natters, to:- (a) the economic consequenccs ofany de.ision in the long tcm; (b) the nccd to fosrcr thc slate-owtred enterp.ise's busincss relationships wifi suppliers, customers and other stakeholdcrs; (c) dle impqcl of th€ statc-owtrcd €derprise's op€rations on thc coDmunity a.od the e viroDmeDt; (d) the importancc of the stlte-ow[ed enterprise maintaininE a rcputation for high standffds ofbBhess conduct; and (e) the n€cd to act faily as bctw€€n m€mbcn of the statc-owDed mterp;sc. (3) Notwithstanding anything coatained iu aoy other law for the time being i force, tne prirnzry objectivc of a commercial stste-owned entcrpris€ shall be to bc gEdcrate sufficicDt rcvcrucs to colcr their cosls and be fin ncially sustailablc - (4) The Federal Govemment shau not requiir a commercial state- owned cDtcrprise to undertake a public scNice obligation which deviates ftom the primary objective except as specified in Schedule-ll of this Act; (, Nodin8 in this section shrll altcct t[e validity or edorceability of atry cont'act or other u"nsactiod erncfcd into by a c.rnmercial state-owned eoterpri$- CHAPTER-4 }'IiAS U R{B LE PE B FOf,\IA}.-C E

8. Busin$s plrtr.-{l) The Board of every staie-o*n€d err4rprise shall, prior to the coonraoc€rDent of each financial y€ff, adopt a busincss plad itr r€spcct of the followinS three flnancial ycan which shall c&tain informatim about the op€ralioos, strategic dircctior! ard fiDancial atrd rcn-financial porformarEe me3surcs of thc state-owned etrterpris€ atrd dcmo$trates how thc state-owoed enterprisc shall achieve irs primary objectiv€: Provided that thc business pkn must b€ effcctivc oD the first day of the 6rst financial year ro which it applies. e) If a st tc-own.d edte.prise bas (me G tEonc subsidisries, lhe busin€ss plan must, for cach subsidiary and for tLc group ss a whole, includo PAET I ] THE CAZETTE OF PAXISTAN, EXTRA., FEts. 2, 2023 hformatior about dre operatioDs, strategic directioD atrd financial projc.tioDs of lhe stale-o\rncd enteryrisc. (3) Thc busincss platr of a statc owded cntol,risc shall bc prepared itr cotrsultatiod with the Division to which the business of the staterwDed eDt€i-pds€ has been allocated lltrder tbe Rules of Busi&ss, 1973 and lhc draft under consultation shall bG simultaneously submitt.d to the C€ntal Monitonog Unit and the adopted busioess plan shall bc subDritted to thc F€d6a1 Govemmerlt for information. (4) The board of every slate-owrcd cntcrprise shall at tltc start ofeach financial year, adopt and cause to have published a statem€nt ofcotporate intent for thc state-o*ned entcrprise or the group comprisirg the state-owocd entcrpris€ aDd ils subsidiaries (if any), io respect of that ycar and the folloividg two fitrsncial years in the rns-nner rnd form sat out in Schcdule-l[. CTIAPTER-s RESPONSTBLE MANACEMf, N'I' 9. Applicetion of t[lJ Chiptcr.-Tti6 chapter snal apply to dl boardr of state-osmcd coteryriscs, notwithst ndhg anything conoined in any other lsw for lh. time bciry io force.

10. Bo.rd NominatioEr CoEhittee.-<l) Thcrc shall be a Bosld Nominations Cornmittec colnFising- (a) thc Mitristcr in Charse to which th. business of th€ state-owncd cnterprise has becn allocatcd udcr the Rulcs of Busbess, 1973, who shall also be the CLair oftbe Cornmittec: Provided thal wher€ thc Mi*tcr h Chargc is lte PrirE Miiristir, hc may tromitrate another rncmber of thc Federal Goverrunmt to be Chair oflhe Corl)Inittee; (b) lhc Sccretary ofthc Division to q/hich 6e busitrds of lhe stete- owncd entcrpdsc ba! beed ellocated ur .r tla Rul6 of Buitrcss, 1973; ad (c) lhe Secret ry of the Finance Division or his Domilce of at lcast BPS 21. (2) The Board Nominations Committee shall be rcsponsible for (a) idcnti&ing and rccomlnctding candidatcs to thc Federal Covernmcnt for appoitrtBcot as indepe ent dirEctors which the FedeBl Govemmcnt is empowered to lppoint to Boards; and 92 TII GAZETTts OF PAI(ST$, (b) recornmendhg €r-oficro positions to bc held by rhe rclevant Divisiotr or public s.ctor orgadzation of th. F€deral Govemment, or whe.E rcccssary, a Provincial Govcrrlrcol (3) The proceduc adopted by the BoBrd Nodioations Committee for performin8 irs fimctions sha]l be notified and $haU comply with t]rc principl€s of merir, coDfiddtiality, trarBparEncy, diversity aDd faimess, iocludlng, but not limit€d lo- (a) advenisemeo. in a ncwspapc(s) of wide circulationr &) rcguesting applications by iDvrtation; !lc) appointi4 a head-hunting agency; or ('d) idqfirying candidalcs Aont the dalabank of indepeDdent directors rctified by ll|c Securities ard Exchrnge Commissiotr of Pfistan undcr seclion 166 of the Compad€s Act, 2017 CXD( of20l7). (4) The Board Nominations C,ommittcc shall apply thc prsscflbed fit and pmper criteria while making nominations of persons for appointrnent as dircctors, I L Dlsqutllficntion of indcperdent directors"-The following Frsons shall nol bc appoiDted or conthu. to hold olficc as ao hdependent dtector, nJnly: (a) a person who is ude. eightccn ye3rs ofagc; (b) a p€rson who is rct a naturBl person; G) a person who is an udischrrged banhupt iD aDyjrrisdiction; (d) a pefton who has bcon convicled ofan offmc. in any iuisdictiotr; (c) a person who is prohibited under a statute or by order of coun from being a director or prumoter oi: or bciilg coocemed or takiq pan iD the managemcnt ofa corporalior! 0) a person who is dcclared me ally unfit by a mcdical board constituted for this purpose; Gl) a person who is in thc scrvico of Pakistan; (r) a member ofthe Majhs-e-Shoora or a Provincial Assembly; PARr I I TIIE GAZETTE OF PAKISTAN, LXTRA., FEB. 2,2021 93 (i) a hotder ofa poliucal offic€ whcther or not in a legislative role; or (.1) an cmployee ofa stat€-owaed c erprise. r

12. CoEpo6itior of the Bo&d of comprry--{l) A Board of a coElpany shall coosist of indepedcnl directors, er-rlrtcrb direclGs .Dd thc chief €xecutive ollicer of the company, \^,ilh the rcquisile skills, compcrctrc€, krcwlcdge, expericnce and approach so that lhe Board as a group itrcludes core competcncics and divcrsity required to assist the coqstry achiwe its primary objcctivc. (2) The maj ority o f thc board shail consist of ird€petrd.nt directors (3) No pcrson shall bc appointed or nominalcd as a director of more than fivc slate-own€d enterpnses simultaneousiy, ircludiEg thcir subsidiari€s. (4) An inde?endcnt member shall not scrve for more than dne ycars on a Board, and shall not be appointcd to thc same Board a{ier two consccutive terms urless a p6iod ofthrec years has lapsed.

13. Ierm ofomce of dircctors.-{l) A dircctor, once appoilted shall hold ofiice for the period spccfied under the applicablc law, unlcss h€ resigns in writing or is removcd €arlicr in accordance with th€ pmvisions ofthis Ac1. (2) An indepe ctrt dircctor once lppoirrcd by tbe Fcdcral Govemment shall noi be rernovcd unless it is estsblished thtough all iDquiry condu€t d i, the prescdbcd mannar that- (a) thc dtector is foutrd to bc in aoa-co|lplirace with lhe provisioDs of rtir Act, or rhc coqaDic6 Act 201?, (xD( of2ola, or aoy orhe{ spplicsble lsw; (b) thc diredor f.ils to tul6l his &nies &d Esponribiliti6 und6 thi3 Act; (c) thc dir€€tor is found to act in s m,Ilner d€tsinrcntal to the successfii mznagement atrd operation ofthc state-orvrcd e crpnse; or (d) ihc df€clor $ fouod gujlry ofmiscotrduct. Frpllrnaton. For thel[tpose ofthis clause, mbcotrduct includes- (i) ininnSitrg ilr s comp€ting prof6sioDrl or persond onflic1 of inffi'siuution; ),1 THE GAZETTE OT PAKISTAN L]XTRA.. FEB.2.2023 (ii) using the funds. asscts and resources of the state-owned enterprise without due diligence and care; (iii) failing to beat the colleagues ard the stalf of the state-owned enterprise with respect, or using haras$nent in any fonn of physical or verbalabuse: (iv) making public statements relating to the business of lhe state- owned enterprise \vithout authorization by the Board; (v) failing to comply with the state-owned enterprise's code ofconduct or conflict of interest reqnircmerts; (v) receiving gifu or other benefits fiom any sources extemal to the stalc-owned enterprise offered to him in connection with his duties on the Board; or tvi) abusing or misusing h;s official position to gain undue advantage or assuming financiai or other obligations in private institutions or for p€.sons which may cause embarrassmcnt in the performance of official duties or frlnctions.

14. Def€ct or irregularity in appoitrtmetrt,-No act, proceedinS or decision of the board shall be invalid by reason only of the existence of a vacancy in, or defect or irregularity in the constitution ofthe board. I5. Chrirm.tr of the board lnd the chiefexecutive olficcr.-{l) No person can hold office a-s chainnan and chief executive of a state-owred enterprise simultaneously, and the office of the chairman shall be separate and his responsibilitics distinct, from those ofthc chiefexecutive officer. (2) The chairman of thc boa.d shall be appointed by the Federal Covertunent and shall be rcsponsible for lcading the board and ensurirg its effectiv€ functioning and continuous devclopmenl and shall not be involved in day to day operations ofthe stale.owned enrcrprise. (l) The chiefexccutive officer shall- ('t be responsiblc for the mana8ement of the stale-owned enterprise and for its procedures in financial and other matters under delcgation from the board and subject to the oversight and directions of the Board: (b) ensLrrc the proper implementarion of stratcldes and policies approved by the Board; and PART I ] THE GAZtsTTE OF PAKISTAN, FEB_ 2,2023 !r5 (c) putting in place ap?ropriate arrangeheds to ctrsurc rhat fun& a rcsollroes arc propcrly safeguardd end ara usad €conomically, ef6ciently and effectively aud in accordarc€ with th€ stltc-owncd mterpise business plan, the prinury objcctive nd ell stalutory obligations.

16. Fit lnd proper criteri.--<l) The fit tnd proper criteria shall be pr€scriberl in Scheduk fV arld shall apply to indepeud€ot dircctors, thc chief executive officcr, ihc company secretary and all other sedor nraEagemclrt oflicers, by u'hatarer narne calle4 ofa state-owned enterprise. (2) The requircmeEt to comply with the 6t and p.op€r criteria und€r this Ac1 shall be without prcjudic€ to c{rnplia.oce with aDy other requircment for th. fitoess apropricty ofdirecttrr or scnior mrtragln cnt ofrccrs issu€d uader any sp€cial law, rules or regulations by a sector rulator or au(hority goveming a spccified sector. CHAPTER{ RISPONSIBILITIES, POWERS AN'D FUNCTIONS OF THE BOARD l?. hdep€nderce of the Boird.-{l) The Bmrd shall be given autonomy a.nd ind€peldeDce in lhe discbarge of its irnctioos under ihrs Acl c any other applicabl€ law in accordarce wilh the adopted busincss plan and m admidst-alive or slanding insttuctio[s by ally Divbion of thc Federal GovemmoDt shall be lpplicable to ,ny statr-owncd entcrprtcs uolcss prior approval of th€ Federal Covamm.nt hss bcetr obtabed and any such instructior8 alrcady in field at lhc time of coming into efect ofthis Act 6hall require F€dcrd Govemment ratification within a p.Tiod of sir mo hs, failing which they sh.ll bc dcemed to b€ res.lnded- (2) Slate-owDed enterpris€s shall mrintain ird?cndc{t procurEmcnt policies with thc approval of &e Federal Govcmmcdt, which conply with lhe Chart€red Institute of Procurco€nt and Supply's Globsl Staadards of Procuremcni and Supply and shall only be responsibl€ for compliance of the pmvisioDs of fic Public ProcEemetrt Regulltory Au&ority Ordhance, 2002 (xxll of2002) to such oxtent as may be dtectcd by th€ Fedaal Govemment: Providcd that untill the procurement policy of stalc-owncd entcrprise is prepared and approved by the F.dclal Govcnrment, thc Public Prcr1jrem€nt Regulatory Autlority GiDaftr 2002, (ffiI of 2002) afly t utatb ndaadis \a iL

18. Appoirtm€nt of th€ chi€f ercclttivc omccr.-{l) The Boarq in the case ofa compaay, or thc concemed authority in the caso ofa statutory state- owned €ntcrlrisc sh6ll a!,point . chief executive ofrccr to the state-oq,ncd enterprise lmder a perforrmnc€ based conFact for a specified period urless such 'I HE GAZETTE OF P X]ST N, LXTRA-, FEB- 2,2023 [P^RT I period is already speciied fu the enadnmt govemitrg a statutory state-owned ent€rprise: Provided that th€ Board or the concemed autlrcrity skll bring th€n existing ar.atrgements with the the appointflent of chief executive otrrcers ir ]irc with this provision within one year ofcomiq into effect ofthis law. (2) The Board or the goveming My in the c{se of statrrtar/ state-owtred €ntsprises, by rdlar€!€r Dame calle4 shafl b€ rcs?otrsib]e for srsudng tle performance of lh€ chief €xecutiv€ is rnmitorEd r€gulady against agreed p€rfora,ance measureG and for the chief exocutive's dsvelopment atrd succ€ssion plaming.

19. R€.potrribility to tb€ rhrreholders rnd the it te-owned etrterp se.-{l) The Board shall ensure its obligations to shar€hold€rs of the state-owned efterprise are ful61led aod lhey ale duly iDformed ia a timely ' marmer of all material events tkough shareholder meetings aDd other commmications ss n€c€ssary. (2) The Board shall dev€lop and irplemcnt a code of co[duct for the menrbers ofth€ Board, as w€ll as the ernplo)€€s ofthe stat€-owned etrtcrprise for the Datlers set out itr Schedule-V ofthis Act, with a view to ensure the highest professiooal stardrrds aad coqrcrate values are in place: Provided tnat the code of conduct dev€lop€d under this sub-section shall be elfedively conununicated within the state-owned enterprise together with supportitrg policies atrd Focedues, inciuding adequate systenN and contols for the identification atrd redressal of grievances arisiq ftom unethical practiccs.

20. Enforccmcnt of systcms of intemal control.-The Board shall ensurc lhc integrity of ahe s)sterns of intcrnal control a any persotr who is found liable for a deviatior or violatioD ftom the compatry's code ofcotrduct or oth€r systems of intemal control shall be subject to disciplhary Foceedirgs in accoralarce with the state-o*led €nterprise's intemal policies.

21. Audit Committ€€.-{l) The Board ofa state-ou,ned ent€rprise shall esta.blish an audit committee, whose mcmbers shall b€ itrarcially literate ad llrajority oftherq iacluding its chairman, shall b€ independent directors: Provided that the Chairftr ofthc Board and the Cbief Executive Officer ofthe state owDed enterprise shall not be members of the audit cornmittee. (2) The audit committee shall be respoEsible for (a) recommending to the Board the appointmetrt ofextemal auditors by the state owDed entsrpris€ and shall consider any questions of PaRT I I THE GaZETTE OF PAKIST EXTRA , FEB, 2, 202] resigration or redoval of €xterDal auditoN, audit fees and provision by ext€md auditors ofery scrvicc to th€ statc-owncd cntcrprise in , addition to auiLt of its financial sl4.ments; (b) deterEiDation of approprietc mce.slllEs to safcguard thc stitr owtred e erprise's asse6; (c) all rcports and comunications with extcmal auditors: (d) review of half-yearly and annual financial statcmclts of the slatc o\+!ed efterprise, prior lo their app.oral by the Boar4 (c) .nrudfg coordinatiotr betlxcen thc intemsl aDd €xt rDal auditors of ftc starc ow[cd €rrerprisc; aDd (D invcstigrting, *'h€rc lc.rssay oa r cmfid.otisl bssis, aoy deviation &om or violatio! of thc caq@y'i codc of cotrduct on othlr sys@rns ofint€mal control.

22. Board m€€tings.-<1)Thc Board ofs compaDy shall mcet (a) at lcast oDce in ev€ry two rnontbs; and (b) at othcr tim.s that ihe board considers ftc€ssary for thc cficient rxmaSement of th€ busincss and affairs of the slatc'owned enterprise. (2) Not*ithstanding aryltring coDtahed in ey other law for the time beiry forcc, dccisions of the Board shalt bc t k€6 by majority, howcver the iD foUowiag docisioDs sbsll rcqui€ a decisioD by lbrcc-fouth ,rajority, which shil include tb. votc of thc rcmince dircclo. rqlrEs(nthg ihc Fcdael or Proviftial Crovemmeal, oatnely- (a) appoinEncnt ad reftoval of chief executivc ofrccr of thc state- own.d enterpris€; (b) approval oithc statcment ofcorporate intent snd busincss plaq (c) pmposals for sale of sizejble assets; (d) annual budget stzrern€nt approval; aod (e) sale ofasscts ofthe conlpairy (3) The Chairman ofthe Board shall in case ofequsl oumber of votes, have a casling vo1c. ].HE GAZETTE OF PAKISTAN, EXTRA.. FEB,2,2O]] I ^RI 2.1. Irdemtrity.-No suit, prosecution or other lcgal pro€eedings shall li() againsl the dircclors, chief executive ofTicer, or other employee of a statc- o\vned enterprise if the liability arose out of an act or omission of the director, chief executive or employee and the act or omission was done in good faith and with due care. CHAPTER-7 TRANSPAR-ENT PERFOR}IANCf 2.1. Financial tren3perercy.-{ I ) The Board shall cnsure that the strtc-o\\,ned enler?risc along with ils subsidiaries, must keep written financial records that- (a) comectly rccord and explaitr its trarsactions and financial position ,nd performance; (b) enable I'inancial statements ro be prEpared and audited accordance with this Act; (c) clearly identifu any Eansactions undertlken by the st4te-owned enterpris€ wilh ady director or his close rclatives, either directly or indirectly and comprising a pecuniary oi non-pecuniary benefit through a compsny or other business established by such dircctor; and (d) enable o$er repotu requirEd by this Acl to bc prepared. (2) The records requircd b) sr:b-section (lF (a) shall be kept for at least ten yea$ aiier the dates of fie transactions to which they relate; (b) must be kept at the principal place of business or the registerc.d olfice address oflhe state-o\aned ent€rprise; and (c) shall also be kept in electronic form if tfiey are rcadily relrievable and convertible into hard copy form.

25. Fitr&ciel strtemetrt!.-{1) The board of a state-owned enterprisc must ensure there is preparc4 for each financial year. audited financial stalefterts for thc shte-owned enterprise as *ell as consolidated finarcial statements fo, the group consisting ofthe stat€-ou.red enterprise and its subsidiariesl Provided thal for the purposes of lhis secrion. a suhsididrv shall nor include ajoint venrurc. P^RT I ] TIIE GAZETTE OF PAKIST N, EXTI{6., FE.B.2,2023 99 (2) Thc financial statements must be Eepared in accordance wiah Intemational Financial Reporting Standsrds and the financial statcmcnts together with the not€s to thcm must include all infomtion that is oeccssary to ensure that the finaocial statements give a true and fair view ofth€ firEAcid Fosition of the state-oxmed enlerpriso ,nd the goup consisting ofthe stata-oumed enterpris. and its subsidiarics: Provided that where a state-o*led enterprise is not following the htemational Financial Reporting Standrr& at the time of coming into effect of this Act, the Board shall eDsure compliance with this Fovision withi$ a period of $ree yea6 ftom comirg i.Eto effect ofthis Ac!. (3) Thc fiEarci, statemeuts oust be aaalqaded by i declrratiotr of thc Board *lcth€r, in thcir opiDion (a) thcrc aiE reasonable grounds for bclicving that tbc staE-owrcd €nteryris€ and its subsidiaics shall be able to pdy their debts ss they becorne due and payablc; end (b) thc financial statements lnd thc notes to them comply with the requircmcnts ofthis Act and intemational accounting steDdards.

26. Arnurl r€port.-1l) A st tc-owDed eslerprise must submii to the Fedcral covcromc a rcport on its opaations ad its subsidiaric! for the 6naftia1 yed to *,hich it r€lates, Dot latci than four montt! sftcr t[c snd of that finarcial year in the form prescribed in Schcdulc-Vl (2) Thc annBl rQort may omit informatiotr that the board of the state- olrrcd enterprisc rca$nably considcrs is likcly to materially prejudice the comnercial inl€rests ofthe state'oEred .oterprs€ oI a sub6idiary ifdisclos€d. (3) Thc Board shafl submit a repon ro thc Federal Governmhent on the inlonnation omittcd ftom the annual rcpon under sub-section (2) and the reasons for such omission and such report shall be confidential. 2?- Pobllc.tio! of summrry of mru.l report<l) A state-o*rcd enterpriso must arrarEe for publicarion ofs sumlnary of th€ annual rcport on an intemet site mainlainci by the state{wlcd cDt€rprise or, ra'}rere the state-owDed cntcrprise docs not have a website, oo thc $rbsil,e ofthe Division to which the busroess of the state-oll,ned eoterprise is allocited under thc Rul6 ol Busi[csB, I 973, or itr one or more newspapers gcncrally circulating i[ Pakistan. (2) The sunrury of the annual reporr must be published undff sub- section (1) within one month aller thc rcport is submittcd to tle Federal Govemm€nt End should compare the actual pcrformarc€ of thc statc'owned 100 THE GAZETTE OT PAKISTAN, EXTRA,, FEB, 2, 2023 entsrprisc during thc finarcial ycar to whrch the repon relates with the targels or b€ncbnrarks set in its statcment of corporalc intcd for that fimncial year.

28. Half-yearly r€porrt.-<l) A stat -owned entapris€ must submir to the Fed6al CovernEcnt a half-yearly repon of the opemtiotrs oflhe state-owDed enterprise for tbe first half of thc financial year lo which it relates not latcr thatr two months af(er lhe end offie tust halaof dat fmancial yfar- (2) The h.lG,,early report Eust co rin: (") fi ncial rq,ois of6c sntcowDrd .ot qrisc; thc hslfy€srly (b) a statemdt @ drc cr&trt tt! ltit-orrlcd cdt!.prilc ad i6 subsidiui6 hlv6 achicvcd tbc h$i!.rs. tods rpacitrGd iD iG statcficnt ofcorpootc intaat for tte financiel ye*; end (c) itrcludc !!y otha Eattcr lhat thc Fcdcr&l coiqDmcnt day direct &c state{*ncd €nterprisc to include. CHAPTI]R.8 SHAREHOLDNC RIGHTS OF TIIE FEDERAL GOVERT\Mf,NT

29. Role ofF€der.l Govertrmcnl-{l) Subject i,o this Act, lhe F€denl Govemment sball cxercise all thc powcrs and rights tbat sharebold€rs have in relstioD to the stare-owned enterpris€ under tbc law or thc colstitutiod of the st3te-ov,ned entErprise. (2) The manner of excrcisc of sharaholdcrs riShts with rospect to the stat -oBned cntcrprisc shall bc prescnbed i! the sEte-owDed enterprise owrcrship and matragcmcnt policy and shall include, without limitrtion- (s) the designatioD of the o6ccrs authorizod to aat as shareholder on behalfofthc Fed€ral Govemmedt st ststutory meetings; and (b) any other natter nec$sary for the cllicicnt €xcrcisc of shareholder rights by the Fod.ral Govcmmcnt. (3) The p.ovfuion8 of ihis eection sh:ll harc ovenidhg effcct owr atry procedute to lhe conE ry in any othcr applicablc ldw.

30. Dlsclosure by strteoE,ll.d .ntcrDrt!a.--{l) The directors ard senior F".ogcmedt offic.rs of a sratc-o\rrcd cnErpris€ shall annuelly submit th6ir assets aIId beneficially hcld iivcstmentj and propertiG to tbe Boar4 aod a.Ey changes thereon shall bc reponed to the Board withh two weets of such PART ] T THE GMETTE OF PAKS change, subjccl lo such reasonable resridioDs otr nukhg this informatiotr public as may b. imposed by the Board in its conflict managcmeot policy. (2) The FedEr&l GovemmcDt Inay dirEcl a strt .owncd etrteqris€ to disclos. sp€cificd inlomatioD or documeats rolatiog to the affairs of the stat.- owDed .nErpris! or its 6ub6idiery. (3) Thc Federal Govemment trrust not dtccl the alisclosuft of information rclatiry to an individual if the individual is irlentifiabb Aom rhe infon retio!- (4) Subject to the terEs of a diiEctio[ utrdcr this section, a state-owncd enterprise may propose r€asonable corditioos to lhc Fcdcral Ciov€mrnent on making thc hfonflation public disclosed under this 6rrtioo, including restrictions of it! fi[thcr disclosurc CHAPTER-9 MONI'I'ORING Pf, Rf OR.\IANCE

31. Centr.l Eonitoring unit-{I) Thc Federal covcmment shall establish s central monitoring unit in thc Financ! Divisiotr Ehich shall dso oaintain aD electonic database of lhc Enacial and @erati@al perforrDelc. of stat€-owned eotdpriscs ard lhc following informstion rtr rclation io state-owled entcrpris€s, naErcly.- (a) slatem€nlsofcorporateintenli (b) business plans; (c) half-yearly aEd alAual rcporrs; atld (d) eny otlel informatioD prEscriH iD 6e stsle-o*ncd rntarprisa maoagemot policy. (2) Ttc ceDtal moDitori[g udt shall und€rtake alrl]sis otr th. fin.ncial, coElmcrcial and opcrational p€rformatcc of state-owo.d €ntdprfu€s, and on th. basis of such ,nallsis, submit recomneddatioDs ro th€ Fcderal Govemricnt o11 Daficrs relatcd !o tha performrDcc atd govemaacc of statc- owned cd.rpriscs! i[cluding- (a) the overall perfornurce ofslatc-ovrned €nterpris€s; (b) p.rforosnce of st Je-owned entdlri!€s against lhcir primary obj.ctiyc,, busincss go61s, and parforD.rcc tat8cb and bcnchmark; THE CAZDIIE Of PAK]STAN, EXTRA. FI]A,2.2023 (c) invesfiEdt in, loans to, and guarant€es ofstate-owned entdpris€s; (d) the risks associatei with the state-owned entcrprise sector that could affect the Slate's invesinent ill statc-own d ede4rises; (e) proposals r€lating to rnaJor transactions by state-owned coterprises as and when required by the Fedcml Government; (0 best practi.r by slatE-o*ned er €rpriscs for encoureghg ald enll,miry emcicncies ad scrvice dclivery, and for irlrprovi[g performarc€; (g) agrEemcn6 for public servic€ obligatioN as and wh€d r.{uircd by the F€deral Govemmeoq (h) corryliance ud€r s€clion 32 by state-o*Ited e erf,ris€s; (i) stare-owDed entcrprise rcform options as snd when requiEd by thc Fedefal Govcrdrnenq (j) anal,sis of thc coDtcn( of thc statemcnts of coiporate intent, bushess plans, annual rcport! and semi-ffnual reports; ad (k) any othcr matlcr which the l-ederal Govcminent may rcquire. (3) The central moritoriq utrit shall issuc pdiodic rcports on thc pcrforhancc ofthe state-owDed e .Arises and matters listed iD sub-s€ction (2), which stall Dot be lcss than oncc cvcry half yc{, in such follr atrd Elmer as mey be prescribcd, ard such reports shall be submittcd to thc Fedcnl Govcmment. (4) The centEl monitoring unit shall publish a consolidated r€port on thc p.rfomance of stale-owDed eotcrpnses annu.lly, with thc approvEl of the Fedcral Gov.f,nmcnt.

32. Disclolur.s to the c.trtrd moritodrg uriL-{l) Every statc- oq,ncd e tilris€ shall bc r.quted !o submit itrfonn tioD to tha ccatal monitoring unit as rcquted uEdcr thfu Act: Provi&d rhat if 6erE is ,oy chaogc cr etror in tte Frtic lEs alrEady submitted to tbe slatc-ouned enterpris€ monitoritrg unit, it shal bc updatd or correcti as thc casc may bc, witni. fift€en drF of $rch cLnge or knowledge of (2) Ite cental monitoring uoit rnay, by notice in vrrititrg to a 6tate- own€d entaprise, require a disclosure by &e state-owned entcrprise to cnable the cenEal moditoring unit to dircharge i1s firncrions ulder this Act. i PAR1 I I Txll(iAZETTE OF PAXIS'IAN, F-XTRA., FEB.2,2023 r 0.] (3) A state-owned entsrpdse lcust cotrely with a notioc under sub- sectior (2) wi$in t€n worling darr sft.r r6c.iing it. CIIAPTER.I O E\FORCINtE\'T

33. Erforc.DeDt of thfu Act-{l) Thc Fedsrl GovcroEeot sbrll cstablish a commitlee of the Fed€ral Cabinct to rDouitor thc iraplementalion of tbis Act. (2) Thc Division to *eich thc busir€ss of. state-owned entcrprise has becn dlocated under thc Ru.les of Bssincss, 1973 sha[ co-ordinatc witl 6o Board of such state-owrcd enterprise to monitor conrpliarcc with th. provisiotrs of this Act, includin& wirhout limitatioD, with r6l€ct to thc dc!€lopEeDt of Ole business plan. statcmc s of corpora& intcnt, &e ,n ual Eponq timely cstablishmcnt of slstcms of internal controls of lhe state-ou,ned cntcrFise, appointment of th. Chief Executive Officer, and rcportiDg to the c€afal monitoridg unit. (3) The Fedcral Govemment may carry out its finctioDs iDd powers under lhG Act, exccTt ihe power to rret ruIes or to appoint indepe e[t dir.ctors, citht' dilcctly though or by dclcgrtioa to one or morc of il! Dvisions or a body corpor.tc which hay be cstablishcd by lhe Federsl GorclDEcot f(r lhis purpose by Dotificstion in the official gazctt : Prodded that in case the F€icral Govcmfteilt eaiablisbas a My corpomte then &e firnctions of the c.DCz[ moniloring udt 6h.ll slso be undertaken by such body-

34. Por.r lo ErL! ruL.-{l) Thc Fderal GoYtrDmcd may, by trotifcitiod in lhc oflicirl C'ezdlc Drrtc tulcs to c.ry our drc Flrpo36 uod.r riir (2) Without projudice to the generality of tlrc foregoing powe$, such rul€s may providc for (a) proccdure for submission of various rcports to thc Federal Covemment ed thc DarDcr of prcp..atioo of such repor6; (b) legat tdidity, forD, procrdurE and seclrity of thc clectrooic databrse inaintaiEed by thc ccntra.l mooitorinS unit; d (c) any o$cr matter incidental or corsequeDtial. t04 l III] (iAZETTE OFPAKISTAN. LXTRA., FEB.2,2023 IP^Rr I (3) Thc power to rnal(e nles under this Act shall be subject to the condition of prior publication in a manner appropriate for inviting rcpresentations thcrcon by thc public, and the F.deral Govemment shall cause a report to b€ published on ils website, seuing out ir geocral terms- (a) the .epres€ntations made on the draft rulcs; O) thc respons€ ofthe Fedoral covemment 10 the reprcscntations; and (c) wher€ tfie rdcs are made wilh modifications which in the opinioD of the Federal Governm€ot result itr thc rules or rcgulations being sigDificandy different Aom the draft, publish, in such mamer as it considers apFopriate, details of the dcatcoce.

35. Pow€r to issue dire.tiv€s, circulrrs, guidelin€., crc.-Th€ Fsteral Covcrrnftnt shall have thc power to issue such directives, codcs, guidclines, circular]r or nolificatioN as are necessary to carry out the puposes under this Act and the rules madc hereunder. C}LAPTER I1 MISCELI,AI\-EOUS

36. Mi.cellsleour..<l) Notwittststrditrg anlding contaircd in ally law for the timc b€ing in force, nothing in this Act, shall afect or b€ d€cmcd to alfect aoFhing done or sny actiotr takcn, or purportci to have bcco taken by a statc-oivned cntcrprise, includirg uader aoy rule, regulation, notification, order or notice r8de or issued, any appmval, appoi mcnl or declaratio. rnade, any op€ration underlaketr or dircctiotr given bcfore the conuneft€r:lcnt ofthis AcL (2) Subject to sub-scction (l), any order, nrlc, notification, rcgulation, appoi.tment, conveyrncc, dcc4 documcnt or direction nBdq proccrdi4s t tcn, instnmcnt cxecuted or isslcd or thing donc by or in rElation !o a stale-osted eDtity shall, if in force before the cornmenceoent of lbis Act, continue to b€ in force atrd shall havo effcct as if rnade, directe4 passa4 gven, tak€n, execute4 isBued or ilone utrder or in pEsuaace of this Act, unlcss othcrwisc specifically withdrawr by an order ofthe coDccmed authority. (3) Any pe6on appoitrrcd to any office pnor to lhe coming into force of this Act shall be deemed to have been appoitrtcd to that omce under and by virtue oflhis Act and any condition or tcrB of scwicc or employmcnt modifiei tbough tb$ Act shall not hsve retrospective arplicadon or cffcct. (4) Vr'ithin ore year of thc comitrg itrto .ff.c! of this Act, the Federsl Govemment shall in the case of any inconsistency, initiate legislation to briDg the la*! ofstaqrtory srate-owred enterprises in co o.mity with the provisions of lbis AcL P^Rr I l TTIE GAZSTTE OF PAKISTAN, EXTRA, FEA 2,2021 I05

37. Removrl of dimculty.-f aay diffiqJty rris€ ir Siving etrect to the provrsions of this Act Fcderal Govemneot mry oal(e such ordcr, not inconsistent with ihe provisions of this Act, as it may ..nsidcf, ncccssary for rcmoval of such dimculty. Schedulel Entitie. to Whom thl! Lalv tr Extftrd€d he€ Section 3(2)l Eotit! Appticrbl. Provi.ions Pakist n Railwavs I PakistaJr Post Office Comps.des cstrblishcd ulder section 42 of rhc Co.rpa0ies Act,2017 Pakistan Agriculnnal Storagc and S€rvicca Corporatiotr Pakistatr Stalc Oil ScLedde.[ FmEe{ork for Enforcing Public Servie Obligrtions lree Section 7(4)l L The Fed.ral Covcmment rnay in writing require a commcrcial state-o$ned enlcrprise to: (a) provide a specified servifi or perform speciJicd activities; or (b) cerse providing a spccified s€wice or pcrforEiDg Bp€cified activitiG.

2. Within one month of recciving thc $rittcn proposal from the Feder"l Govemment, lhe Statc-owrcd enEprise must rcspotrd to the notice itr writin& stating, with reasons, whether thc State-owrcd enterprise: (a) agrEcs to giv€ €frect to thc poposal; or (b) finds tbc rcquest to be inconsistent with the primary objcctivc ofthe State owncd enterprisc. 3. lf the commercial slate-o\*red eftcrprkc gives a rctice uodcr clausc (2)(b), lhc Fcdcr.l Govcrnment and thc commdci.l strte-ovncd entcrprisc 106 THE CAZETTE OF PAKISTAN, EXTRA , FEB. 2, 202] [P^RT I rmrst enter into good faith tregotiations with a view to agceing .rratrgements under which $a commercial stalc-o{,ned ctrtaprise catr givc cffect to thc Fcderat Govcrnmetrt proposal without acting irconsistently with its primary objective.

4. If a.n agcement is reached uDder clause (3), the anangemors for giving effect to Federal Gov€mment proposal shall be incorpomted in a Public Sewic€ Obligation Agrccment *,hich: (a) must bc in writins; (b) must bc apFoved by the FederBl Govdomcnt and the Board of the cornncercial statc-owned enteryrisc; (c) may iDclude provision for fiEding or otber r€sources to thc cornrnercial state-owded entcrpri!€; (d) if it provides for thc coEEc'cial stat+oll1red ederprisc to provide goods or servic6, rnust- (i) speciry the goods or sErvicd, includhg aiy paniqdrr qufirities; (ii) sp€ciry aD cstifiate oflhe annud tot l cost to tha commercial stalc-o*red enterprisc lor providitrg thc goods or service, ,nd an cstimate of the snnual total revEnue to be receiv€d by the corm€rcial slate-owncd eaterprise for doing so; rnd (iii) speciry how Oo perfonnaacc of the commercial statc-owned entcrpris€ in prcviding the goods or serviccs will be monitorcd atrd alsesscd, (e) rnay includc any othcr rBstter, not inconsistcnt wilh this Ac! tbar is agrced kweea the Minist€r id Chrrge md lhc c.dircrcial state- owrcd e apris.. i- For thc avoialarre of doubl. if tn€ Fcdcf,al Govetnrnr dirEcts a commcrcial state-owncd €nterprise to Fovide specificd s6viccs or pcrform specfcd activities thiough cross-subsidizitrg thc cost between differcnt groups of us.rs .nd tle revenue collectcd by the commercial stste-owned cnt rFise fiom the fioss-subsidization does not cover the costs, the Fcdcral Govcmment ard commcIcial statc-owrcd edterprise will agree thc shod-fall to be funded by the F€dcral Govemment and entca into a public savice obligaliotr agrceDcnt as pro;ded in clause (4). Howcvo, a cross $bsidy behxecn aLffcrctrt goups of usel! which is h accordance with a tadff dctcrmined by a regulator or the comnlclrial sBte-oqTned cEterprise's own prichg ee.hadism, is not a public P^RTIT THE GAZETTE OF FAKIW servlcc obhgatioff and will not r€quirc a public scrvicc obligation agrsemena as provided in claue (4).

6. The obligations uder a public servic€ oblig.tion egrE rrlent shall be bhding. Sch.dulc-trI Strt€metrt of Corporat€ ltrt€n( (see Seclion 8(4)) Name of Statc-Owncd Enterprisc: [ElL !!!!e_ !! !q ! i4!4!__p]f llaoEoration or rcleva statutel

2. Incrrporated,/eslablished onl ldate of incomoratiop./cstablthfunt]

3. Subsidiaries included in t\is statemc of .arporate intent _

4. Dcscription of thc rnain busincss of the statc-o$,[ed erterprise: kEJglbe coBtitutivc doqmarvrelevapt statuGl 5 Summary of the business goals of the state-oMed enterprise : [q!!! !b! approved busi[ass - planl 6 SumEary of th. pcrforDr ce mcasures atrd benchherls against thc state- oBncd ctrterpriscs business goals and ils prirBry objcctive: lta.scts of th€ state owned entcrpris€l 7 Snnm,ry of thc strategi€s of th€ state-owned cntcrprise for achievinS its business soals and prirn ry objcctivc: [@EEergislly-!@si!iy9-!q49gis!3rE not re{uirEd to b€ included hcrE. suorn ry of kcy risks ide.tificd iD ttrc achicvenent ofthe business goals to also be includcd herel

8. Thc crment or aDticipated borrowing of thc state-ownod cnterprise, includiry borrowing by a subsidiary: [current borrowing has to bc soccific anncipated borrowing to be included od ihe basis of proiected revedue rcquirements of the srate-ov&d cptsprisc atrd ldllao! bc bindine a!!!e &itc{wl94@!91

9. Thc accounting policies that lhe state-o*n€d cntcrprise will apply for financial records and reporting:

10. SuDrEary bdrcalvc balance shcct snd profit atrd loss slatcme( for the state-osmed entcrPrise: 108 THE GAZETTE OF PAKSI'AN lr)li IPNRT I

11. Consolidated summary indicative balance she€t and proft and loss statement for the state-owned enteryrise and its subsidiaries as a group: Ineed not be filled if the statqoyrcd €n&A!!q lass !! !-ubdClcsl

12. The proposcd divrdend declaration a distribution policy of lhe state-

13. Description of any public service obligations and their impact on tie forecasted financial outcomes of the state-owtred entor?nse: [4sjgEg!L!!& th9 Jgdgralcqrasrnrnentl

14. Any olhcr rutter directed to be irpludcd in this statcdrcot by thc Feda'al Go},trDEcot: SchedulclV trit rtrd Proper Crit€rir (se€ Section I 6) For the pupos€ of datemining as to whelhc. a person ploposcd to be eppointed as dircctor is a '6t and proper pcrson', ihe appointiDs authorities shall tskc into accou.trt ury coDsideration as it decEs fit, itr€luding but not limited to the following crit€ria nam€ly that ttrc candidatc for appointlllcnt! (a) has trc skils, ho*ledgc and oecriercc to assisr the state-opned entcrpriEe acheieve its primary alrd oth€r obj.rtivcs; (b) has at leart a graaluate degree G) is a businessm& of repute or a rccogtriscd Fof€ssioml widt rclcvant sectoml erperiedce; (d) is fioancially litera@; (.) has no convictioff or civil liabilitics; (0 hls good r€?utatior and cha.actc( alrd crhibib high efticat st dards; G) is aot disqullified to act as s director stipulated in this Act or any oth.r law applicable to thc firnctioning ofa sbte-owned enterprise; (i) has not becn subject to an advene order passed by the Se{uriti€s and Exchaugc Corniission of Pa.kistetr or atry other sector rcgulator; P^RT ] T TH8 GMTTE OF PAIOST O bas oot beetr subject to a! orde6 passed by the Securiti€s and Erchrdge Corffnission ol Pakirtso or sny oth.r rcgularory authority. wlthdrawhg or rrfusing to gr.nt ary license or approi'd to him which has a bearing on the capital markct; and (k) does oot suff€r ftom a conflid of i rrtsq tbis indudcs pottical officc holders wbether or not itr a lcgislative role. Schedulc-V Mrtt !! to bc Covcrcd !!d.r tt. Cod. ofcotrdlct [see Section 19@ L Thc slandads ofconduct for directoB ard employets, wherebyi (i) compliatrce with thc filll&mc[tal priftiples of probity aod pmpriety; objectivity, integrity .nd honesty atE €nsurcd; (ii) $e directors and exccutrves uphold tle rcputariod ofthe strtc owDed enrelprisc by teating the general public, instinrtional investors and other stak€holdem with cout sy, iot Srity and efficiency, and cnsuring servic€ quality; (iii) the statc owrcd entcrprise's asscts and rcsourc€s src applicd for the b€nefit of the stltc-orrlled eot rprisc in a manncr E'hich ensures emciercy ard tr"anspdrocy; atrd (iv) quality slandards ,Ic followcd with due diligencc and that suppliers comply with the standards specified and are paid for supplies or scrvic€s rvithitr thc tine ageed. 2 An cff€ctivc "anti.corruption" stztcry to aidmize ecural or pcrceived coduptior itr tbc $arc owrcd €dtcrp.ile, includitrg wilhour timihtioq with respcct to: (i) the active FoEotion of ethical behaviour and faciliLting reponing of u"lEEtul or uethicrl b.haviour: (ii) the circumstrnccs in which dircctoB and cmployccs may acc.pt gifl3 end othd beaefitt including reportilg ad rccording lhose gifts and bcoeEB; (iii) the usc by dircctors snd €mployces of thr rcsouIc€s of the stat -otvned cnterprisc, including phones, vchicl.s, and other prop€rty; (iv) rEgulatioo of busin€ss Favel, includilg is cross-over with pcrsonal travel; ll0 THI] (iAZI]TTE OF PAKISTAN, EXTRA., FEB. 2. 2023 tP.u1 I (v) reducing or etiminating improper influence on di€ctols and ernployees in their position as a director or employee of the statc- owned ent€rprise: (vi) €quality of opportunity is ensued by cslablishing opcn and fair proccdur€s for making appointrnab and for dcterminin8 terrns aid conditiods ofservice. (vii) coBpliance with thc law ard tbe sta@-owrcd coterprise's itrtcmal nrles and proccdur€s r€lating to public pocr.lrE rcnt, tcodsr regulatioDs, pwchasing and tcchnical slandrrals, wh dealing with supFliers of goods alld serviccs;and (viii) trading in and holding shaEs, sccuities, or other Grancial instrurEats by dircctors and arployees. l Regulation of conflicts of interest, ihcludir4 procc&nes for identificatiorf reportiq, and resolving a coni ict ofintqEq Eylnat?r.-For thc puposes of this clause e pcrson shall be deemed to have a! intcrcst iIl a mattcr iihe has any sta](c, pcqmiary or otherwise, in such rn.attcr which could rcasonably bc regardcd as givitrg rise to a conllict bqwecn his duty to objectively pcrform his firtrctions and his ability to consid€r and de€ide rny rnatter impaltially or lo glve a y advice wiliout bias, rnay rcasotrably bc rcgarded as impaired;

4. Tho use a[d disclo6urc ofinfonrEtiofl by dircc1o6 .nd.aployees; 5 MaDaging brcachcs of the cod€, including moDitoring compliance add r€porthg brcaches; and

6. Ary other matter relevat lo effuring a higb staodard ofgovcma[c€ ydthin thc statc-owtred d(erprisc. ScLedul6.YI Deteili to be Submitted itr th. Arro.l R.port (s€€ Sectiotr 25) I Name of State-Owncd Enterpdsc: [&!LseEp__as_-ps__sdit@,pf incorporatiop or relevaot statutel 2 Incorporatcd/establishcd on: [@9qllncorporatioB/cstablishmeml 3 Subsidiarics included in lhis statcment oI corpomte intcnt: THE GATETTE Of PAICSTAN. FEB, 2021 lll Tho audited finaDcisl stareEents requircd by ltis Act for the 6trancial ye3r to which it rclates: ra Th€ report of thc auditor for th6e fin Dcial siatcments, ircluding compliancr with this Act:

6. A re,\.iew of operations during thc financial year of thc staG-owtr€d enterprise and its subsidiaries and the r€sult oftho6e olErations: 1 A rQort of L\c cxt€nt to which the sat€rwned cnterpdse and is subsidiaries have achieved the outcomes sp€cified i! the slatemcDt of corporste intcnt for the finencial year

8. A starcment ofthe dividend or distribution paid or to be paid by thc stare- ocned €nterprise to the ShrE lor tle liDarcial ,c{r:

9. Details of ony public scrvic€ obligation ag.eement applicabl. during the Iinancial year, iDcluding: lhe cost of the public scrvicr or servicc! p.f,formcd Utrder lhc agreemctrt; aod ii. the revcnue rcc€ived by or payable to the statc-owDed enterpdse uDder th. agrcamenL

10. Details of aay significart chatrgcs in thc a6.ils of tbe statc-oqrcd enterprise duriq lhe fin&cial ,l€n 1 I . Details of any matter or circurDstancc arising sitrcc the cnd of thc 6!fiDi0l year that has sigDrfrcardy affect{d, or may significandy affect, the op€rntioDs ofthc state-owned enr€Iprise in futul€ finarcial )qrs:

12. Details of any brcach of the code of cofldu.t of lhc statc-owncd €orclFisc durinS tIrc financid year':

13. Details of any information which is omited ftom thc aDrual report aloog with r€asons for such omissioo.

14. Any oth€r rna(€r that ltc Fcderal Goverune dirEcts the statc-orDed cnterpris€ to includc in ltrc report. TAHTR HUSSAIN, CORI()RA'IION OF PAKISTAN PRESS. ISI,\M AAD PUBLAHED BY'IHE DTJPUTY CONTTOU.trR, STATIONERY AND FORMS, UNI!'ENSITYROAD, KAi CHL