Pakistan National Shipping Corporation (Amendment) Act, 2024

[AS PASSED BY THE NATIONAL ASSEMBLY]

Bill

further to amend the Pakistan National Shipping Corporation Ordinance, 1979

WHEREAS it is expedient further to amend the Pakistan National Shipping Corporation Ordinance, 1979 (XX of 1979), 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 National Shipping Corporation (Amendment) Act, 2024.

(2) It shall come into force at once.

2. Amendment of section 2, Ordinance XX of 1979. In the Pakistan National Shipping Corporation Ordinance, 1979 (XX of 1979), hereinafter called as the said Ordinance, in section 2,-

(a) in clause (c), for the word "Chairman", wherever occurring, the word "Chairperson" shall be substituted;

(b) after clause (i), the following new clause shall be inserted, namely: -

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

3. in section 3,-Amendment of section 3, Ordinance XX of 1979. In the said Ordinance,

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

(b) after sub-section (1), numbered as aforesaid, the following new sub-section shall be added, namely:-

"(2) Notwithstanding anything contained in sub-section (1) and any other provision of this Ordinance, the SOE Act, including sections 12, 15, 16, 19 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. Substitution of section 14, Ordinance XX of 1979. In the said Ordinance, for section 14, the following shall be substituted, namely:-

"14. Board. (1) The Board shall consist of:-

(2) There shall be a secretary of the Board to be appointed in such manner and on such terms and conditions as may be prescribed.

(3) The directors, other than the ex-officio directors, shall be appointed by the Federal Government and the directors under clause (e) of sub-section (1) shall be elected by the shareholders.

(4) Subject to section 12 of the SOE Act, the Federal Government may, by notification in the official Gazette, increase or decrease the number of directors of the Board subject to having the independent members in majority and that the quorum shall be adjusted accordingly.

(5) No person shall be qualified to be elected as a director under clause (e) of sub-section (1) unless he holds in his own name ten thousand shares of the Corporation.".

5. Amendment of section 15, Ordinance XX of 1979. In the said Ordinance, in section 15, in sub-section (1), in the proviso, after the words "or otherwise", the expression "subject to section 13 of the SOE Act," shall be inserted.

6. Amendment of section 17, Ordinance XX of 1979. In the said

Ordinance, in section 17, in clause (g), for the word "Chairman", the word "Chairperson" shall be substituted.

7. Amendment of section 18, Ordinance XX of 1979. In the said Ordinance, for section 18, the following shall be substituted, namely:-

"18. Chief Executive Officer. (1) There shall be a Chief Executive

Officer of the Corporation who shall be appointed by the Federal Government from amongst three candidates recommended by the Board with a three-fourth majority which shall include the vote of the ex-officio director of the division to which business of the Corporation is allocated.

(2) The Board shall devise a transparent, competitive and objective procedure for scrutiny, short listing and interview of the applicants.

(3) The terms and conditions of the appointment of the Chief Executive Officer shall be determined by the Board.

(4) The Chief Executive Officer of the Corporation shall be appointed for a term of three years on a performance-based contract, extendable by another two years on demonstration of substantial satisfactory performance.

(5) The annual performance review of the Chief Executive Officer shall be undertaken by the Board.

(6) The Chief Executive Officer, once appointed, shall not be removed by the Federal Government before the completion of his term except on the recommendation of the Board, which recommendation shall set out just cause for recommending the removal.".

8. Substitution of section 19, Ordinance XX of 1979. Ordinance, for section 19, the following shall be substituted, namely: In the said

"19. Powers and functions of Chief Executive Officer. Subject to the provisions of the SOE Act, including section 15 thereof, the Chief Executive Officer shall exercise such powers and perform such functions as provided for in this Ordinance and rules and regulations made thereunder.".

9. Substitution of section 20, Ordinance XX of 1979. In the said Ordinance, for section 20, the following shall be substituted, namely:-

20. Functions of the Chief Executive Officer. The Chief Executive Officer shall-

(a) be responsible for the management of the Corporation 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; and

(c) put in place appropriate arrangements to ensure that funds and resources are properly safeguarded and are used economically. elliciently and effectively and in accordance with the Corporation's business plan, the primary objective of the Corporation and all other statutory obligations.".

10. Amendment of section 22, Ordinance XX of 1979. In the said Ordinance, in section 22, -

(a) in sub-section (1), in clause (a), for the expression "Chairman, the Vice-Chairman", the expression "Chief Executive Officer" shall be substituted; and

(b) in sub-section (2), -

(1) for the word "Chairman", the words "Chief Executive Officer" shall be substituted; and

(ii) the expression "the Vice-Chairman or to shall be omitted.

11. Substitution of section 23, Ordinance XX of 1979. In the said

Ordinance, for section 23, the following shall be substituted, namely: -

"23. Meetings of the Board. Subject to the provisions of the SOE Act,

including section 22 thereof, the quorum of a Board's meeting shall not be less than six members, including not less than three independent directors and one ex-officio director, present personally or through video-link.".

12. Substitution of section 40, Ordinance XX of 1979. In the Pakistan National Shipping Corporation Ordinance, 1979 (XX of 1979), for section 40, the following shall be substituted, namely:-

"40. Removal of difficulties. If a difficulty arises in giving effect any of the provisions of this Ordinance, the Federal Government may make such order, not inconsistent with the provisions of this Ordinance 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 National Shipping Corporation (PNSC) was established under the PNSC Ordinance, 1979. After the enactment of the State-Owned Enterprises (Governance & Operations) Act, 2023, it is mandatory to extend the application of the Act ibid to PNSC and align the PNSC Ordinance accordingly. The powers of the Federal Government envisaged in the Act ibid have been included in the proposed Pakistan National Shipping Corporation (Amendment) Ordinance, 2023.

In view of the above, it is proposed that amendments may be made in Pakistan National Shipping Corporation Ordinance, 1979 for smooth running of official business of Pakistan National Shipping Corporation, Karachi.

Sd/-

(MINISTER IN-CHARGE)