ISLAMABAD: The Board of Directors of Sukkur Electric Power Company (SEPCO) has reportedly decided to hire regular Chief Executive Officer (CEO) of the Company despite concerns raised by the Power Division, sources told Business Recorder. According to SEPCO Board, Power Division had neither directed the company to withhold the advertisement nor set aside the Board’s earlier decision to readvertise the position.
The Board also sought clarification regarding the authority under which a letter issued at the level of a Section Officer could effectively result in the suspension of a Board decision, stressing that the governing body must be able to discharge its functions within the framework of the applicable laws and policies governing state-owned enterprises (SOEs).
The sources further stated that the Board had decided at its 111th meeting, held on August 24, 2026, to readvertise the CEO position. The decision was communicated to management on August 28, while the draft advertisement was forwarded to the Director (HR and Administration) on August 31, with directions to publish it within two days.
READ ALSO: HESCO, SEPCO be handed over to Sindh govt: Imtiaz
However, during its emergency meeting held on September 9, the Board noted that the advertisement had not been published. The CEO informed the Board that management had withheld publication in view of the Power Division’s letter dated September 1, 2026.
The Board observed that the ministry’s letter did not expressly instruct SEPCO to suspend the recruitment process. Instead, paragraph 2 of the communication advised the company to adopt a head-hunting firm as the method for selecting the CEO. After deliberations, the Board unanimously decided to conduct the entire recruitment process itself through open advertisement, shortlisting and interviews under the supervision of its Nomination/HR Committee.
The Board stated that engaging a head-hunting firm would consume considerable time in procurement and mobilisation, potentially delaying the appointment further. It directed management to publish the advertisement forthwith. The recruitment process, according to the Board, would be conducted in accordance with the State-Owned Enterprises (Governance and Operations) Act, 2023, the SOE (Ownership and Management) Policy, 2023, the SOE (C-Level Appointment) CMCU Guidelines, 2024, and the Public Sector Companies (Corporate Governance) Rules, 2013. The Board also revisited its earlier decision of August 24, 2026, under which the additional charge of Director (HR and Administration) had been assigned to the Company Secretary.
It explained that the temporary arrangement had been made to avoid a vacuum in a key management position and was within the Board’s powers under the applicable rules.
Nevertheless, in deference to the ministry’s concerns and to keep the Company Secretary’s role confined to governance and compliance functions, the Board decided that the Company Secretary would no longer perform the additional charge of Director (HR and Administration).
The SEPCO Board sought clarification about the legal authority under which the Power Division’s letter had been issued and whether it was intended to stay the Board’s decisions.
Referring to the SOE Act, 2023, and the SOE Ownership and Management Policy, the Board maintained that it was the company’s governing body and enjoyed autonomy in discharging its functions, while the federal government’s ownership role was to be exercised through mechanisms prescribed under the law and policy.
The Board further observed that the ministry’s letter had effectively resulted in management suspending implementation of what it described as a lawful Board decision, thereby delaying the regular appointment of the CEO—a process the ministry itself had repeatedly emphasised.
It asked the ministry to clarify whether the communication was intended to stay the Board’s decisions and, if so, to identify the legal basis for such intervention.
The Board said clarification was necessary to ensure that the respective roles of the Board, company management and the ministry remained clearly defined in future. Reaffirming its commitment to the SOE Act, 2023, the Companies Act, 2017, and the rules framed under them, the Board expressed the hope that the Power Division would continue to cooperate in matters relating to the company’s governance.
Copyright Business Recorder, 2026