Law Ministry Backs Ahad Cheema as Parco Board Director

Law Ministry has surprisingly voted in favour of Ahad Cheema, saying he can hold position as independent director on the board of

Pak Arab Refinery Limited (Parco).

He was appointed in 2023 as independent director on the board of Parco after former board tenure expired in August 2023.

Ahad Cheema was also appointed on board of PTCL.

Sources told NewzTodays that Petroleum ministry had sent a case of Advisor to Prime Minister to law division seeking its opinion on his appointment on board of directors of Parco.

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“Now the case has been sent to Attorney General of Pakistan (AGP) to seek his opinion,” sources said.

The government had appointed two independent directors to the board of Pak Arab Refinery Limited (Parco) in 2023 and that dubious appointment had raised several questions.

Ahad Cheem also enjoyed the status of federal minister. Other appointment was Dr Jahanzeb, Special Assistant to the Prime Minister (SAPM) with the status of minister of state. He was also appointed as an independent board director of Parco.

The two PM aides having portfolios of federal minister and state minister are holding political offices and therefore could not become independent board members of Parco, industry players said.

Experts say that the appointment of these two independent board directors was sheer violation of the law and matter was conflict of interest. These appointments were reportedly made against the corporate governance rules which did allow such appointments.

These appointments were also made before the end of board of director’s terms which experts say that decision was made in haste.

Moreover, according to the law, the concerned minister is also said to chair nomination committee of the board of directors.

But in case of these two appointments, instead of petroleum minister, defense minister Kjawaja Asif had chaired the nomination committee for oil and gas firms.

The appointment was also made was circulation of the summary and consent of 17 ministers was taken only and therefore, many cabinet members were not taken on board in this matter.

The government had issued a notification on February 2, 2023 according to which any candidate would not suffer from conflict of interest. It included political office-holders whether or not in a legislative role.

The government had made these appointments which also challenged the notification. It also barred the appointments of those as board directors who were holding political portfolio.