President Zardari issues ordinance to tackle DISCO board issue

President Asif Ali Zardari recently took a significant step by issuing an ordinance just before the parliamentary sessions to tackle a legal hurdle hindering the government from dismissing the boards of unprofitable power distribution companies (DISCOs). This ordinance provides the government with temporary legal authority to replace the independent directors serving on the boards of state-owned enterprises (SOEs).

The decision by President Zardari to introduce this ordinance was primarily aimed at resolving the government's difficulty in replacing the boards of loss-making DISCOs. With these temporary legal powers in place, the government now has the ability to take necessary actions to substitute the independent directors responsible for overseeing the state-owned enterprises.

The issue of unprofitable power distribution companies has been a longstanding challenge for the government. These DISCOs have been facing financial difficulties, impacting the overall efficiency of the power sector in the country. The presence of independent directors on the boards of these companies has been a point of contention, as their oversight has not yielded the desired results in terms of financial stability and operational effectiveness.

President Zardari's ordinance marks a significant development in the government's efforts to address the challenges within the power distribution sector. By granting temporary legal authority to replace independent directors, the government aims to improve the performance and financial viability of state-owned enterprises. This move is expected to have a positive impact on the overall energy landscape of the country, paving the way for enhanced efficiency and sustainability in the power sector.