Legislative Reform to Strengthen Governance and Efficiency in Pakistan’s Postal Services

By Muhammad MubashirPublished On 26 Jan 2026

[AS PASSED BY THE NATIONAL ASSEMBLY]

Bill

further to amend the Pakistan Postal Services Management Board Ordinance, 2002

WHEAREAS, it is expedient further to amend the Pakistan Postal Services Management Board Ordinance, 2002 (Ordinance CXXVI of 2002) in the manner and for the purposes hereinafter appearing;

It is hereby enacted as follows:-

1. Short title and commencement (1) This Act shall be called the Pakistan Postal Services Management Board (Amendment) Act, 2024.

(2) It shall come into force at once.

2. Amendment of section 2, Ordinance CXXVI of 2002. In the Pakistan Postal Services Management Board Ordinance, 2002 (Ordinance CXXVI of 2002), hereinafter called as the said Ordinance, in section 2,-

(a) the existing provision shall be numbered as sub-section (1) thereof;

(b) in sub-section (1), numbered as aforesaid,-

(1 clause (e) shall be omitted;

(ii) in clause (h), the word "and" at the end shall be omitted; and

(iii) in clause (i), after the semi colon, the word "and" shall be added and thereafter the following new clause shall be added, namely:-

"(j) "SOE Act" means the State-Owned Enterprises (Governance and Operations) Act, 2023 (VII of 2023)."; and

"(2) The words and expressions used but not defined in this Ordinance shall have the same meaning as assigned thereto in the SOE Act.".

3. Amendment of section 3, Ordinance CXXVI of 2002. In the said Ordinance, in section 3, for sub-section (3), the following shall be substituted, namely:-

"(3) The Board shall consist of following members, namely:-

3A. Insertion of section 3A, Ordinance CXXVI of 2002. In the Pakistan Postal Services Management Board Ordinance, 2002 (Ordinance CXXVI of 2002), after section 3, the following new section 3A shall be inserted, namely:-

"3A. Application of SOE Act.- (1) Notwithstanding anything contained in this Ordinance, the SOE Act, including sections 12, 15 and 22 thereof, shall apply to the provisions of this Ordinance and in case of any inconsistency between the provisions of this Ordinance and the SOE Act, the provisions of the SOE Act shall prevail.".

4. Amendment of section 4, Ordinance CXXVI of 2002. In the said Ordinance, in section 4,-

(a) "4. for sub-section (1), the following shall be substituted, namely:-

“ 4.Chairman.- Subject to the provisions of this Ordinance, the rules and regulations made thereunder, the Chairman shall be appointed by the Federal Government from amongst the independent members of the Board."; and

(b) sub-section (2) shall be omitted.

5. Substitution of section 5, Ordinance CXXVI of 2002. In the said Ordinance, for section 5, the following shall be substituted, namely.-

"5. Appointment and term of office of members.-(1) A member other than an ex-officio member shall be appointed by the Federal Government in accordance with the provisions of the SOE Act and shall be entitled to such perks and privileges as the Board may determine.

(2) A member other than an ex-officio member may be removed from office in accordance with the provisions of the SOE Act.".

6. Omission of section 6, Ordinance CXXVI of 2002.- In the said Ordinance, 6. section 6 shall be omitted.

7. Omission of section 8, Ordinance CXXVI of 2002. In the said Ordinance, section 8 shall be omitted.

8. Amendment of section 10, Ordinance CXXVI of 2002.- In the said Ordinance, in section 10, for sub-section (3), the following shall be substituted, namely:-

"(3) Not less than fifty percent of total membership of the Board including not less than three independent and one ex-officio members shall constitute quorum for a meeting of the Board.".

9. Substitution of section 11, Ordinance CXXVI of 2002. In the said Ordinance, for section 11, the following shall be substituted, namely:-

"11. Powers and functions of the Board. (1) Subject to the provisions of this Ordinance, the Board shall have complete independence and autonomy to discharge its functions in accordance with provisions of the SOE Act:

Provided that the following powers shall vest in the Federal Government, namely:-

(a) international agreements, contracts, treaties signed/committed by Pakistan Post Office Department on behalf of Government of Pakistan and ancillary issues thereto;

(b) ratification of conventions and treaties under Universal Postal Union, an agency of the United Nations;

(c) issues pertaining to employees working in Pakistan Post Office Department regulated under the Civil Servants Act, 1973 (LXXI of 1973); and

(2) Without prejudice to the generality of the powers under sub-section (1), the Board shall have the following powers and functions, namely:-

(a) to advise the Federal Government on matters relating to postal, financial and other allied services;

(b) to frame overall market oriented postal policies, products, projects and to introduce flexible tariff regime;

(d) to enhance skills of officers, employees and workers by education, training and to promote their welfare;

(e) to enter into contracts with Federal Government, provincial governments and corporate entities to act as their partner or agent;

(f) re-organization of Pakistan Post Office Department;

(g) establishment and maintenance of extraterritorial offices of exchange for reduction of cost and better quality of services;

(h) re-designation of any post;

(i) transfer of posts from one office to any other office;

(j) to approve plans for utilization of postal properties i.e. buildings and lands for revenue generation including but not limited to public private partnership,

(k) to make strategic decisions regarding restoration and launching of financial services including but not limited to post bank and life insurance to ensure financial inclusion in line with policies of the State Bank and the Federal Government;

(1) constitution of committees including audit committee in accordance with the provisions of the SOE Act;

(m) timely preparation and publication of the financial statements, annual reports and half yearly reports in accordance with the provisions of the SOE Act;

(n) to authorize utilization of non-revenue receipts for specific purposes;

(0) creation, maintenance of revolving funds for any special purpose;

(p) to authorize opening and maintenance of bank accounts for any specific purpose subject to the provisions of the Public Finance Management Act, 2019;

(q) to generate special funds for grant of honorarium, cash award, bonus to employees of Pakistan Post Office Department: and

(r) design, approve and grant incentives to employees on various services of Pakistan Post Department.

10. Substitution of section 13, Ordinance CXXVI of 2002. In the said Ordinance, for section 13, the following shall be substituted, namely:-

"13. Director General.-(1) There shall be a Director General of the Pakistan Post Office Department who shall be its chief executive officer and shall be appointed by the Prime Minister on recommendation of the Board.

(2) The Board shall devise a mechanism for selection of panel of candidates for appointment of CEO by the Authority

(3) The Director General may be removed from office by the Prime Minister on recommendation of the Board owing to his unsatisfactory performance.

11. Insertion of Section 13A. In the said Ordinance, Section 13A shall be inserted namely:-

13A. Powers and functions of the Director General. Subject to the provisions of this Ordinance and the SOE Act, the Director General shall be responsible for-

(a) the management of the Pakistan Post Office Department and for its procedures in financial and other matters under delegation from the Board and subject to the oversight and directions of the Board;

(b) ensure the proper implementation of strategies and policies approved by the Board;

(c) put in place appropriate arrangements to ensure that funds and resources are properly safeguarded and are used economically, efficiently and effectively and in accordance with the state-owned enterprise business plan, the primary objective and all statutory obligations; and

(d) to exercise all administrative and financial powers already delegated as head of department.".

12. Amendment of section 14, Ordinance CXXVI of 2002. In the said Ordinance, in section 14, for the words "Executive Committee", the words "Director General" shall be substituted.

13. Amendment of section 16, Ordinance CXXVI of 2002. In the said Ordinance, in section 16, for sub-section (1), the following shall be substituted, namely:-

"(1) Rates of postage to be charged in respect of postal articles sent by inland post shall be fixed by the Board.".

14. Substitution of section 28, Ordinance CXXVI of 2002. In the said Ordinance, for section 28, the following shall be substituted, namely:-

"28. Removal of difficulties. If a difficulty arises in giving effect any of the provisions of this Act, the Federal Government may make such order, not inconsistent with the provisions of the Pakistan Postal Services Management Board Ordinance, 2002 (CXXV1 of 2002) and the State-Owned Enterprises (Governance and Operations) Act, 2023 (VII of 2023), as may appear to be necessary for the purpose of removing the difficulty.".

STATEMENT OF OBJECTS AND REASONS

The Pakistan Postal Services Management Board (PPSMB) was established under the Pakistan Postal Services Management Board Ordinance, 2002 (Ordinance CXXVI of 2002). After the promulgation of the State-Owned Enterprises (Governance & Operations) Act, 2023, it is mandatory to extend the application of the Act ibid to PPSMB & align the PPSMB Ordinance 2002, accordingly.

2. In view of the above, it is proposed that amendments may be made in the Pakistan Postal Services Management Board Ordinance, 2002, for smooth running of official business of Pakistan Post Office Department.

Sd/-

(MINISTER IN-CHARGE)