Senate Sub-Committee Reviews Legal Framework for Petroleum Boards; Seeks Detailed Briefing on PSO, PPL and PARCO
The Sub-Committee of the Senate Standing Committee on Petroleum met at Parliament House under the convenorship of Senator Manzoor Ahmed Kakar to review the legal and regulatory framework governing the appointment of Boards of Directors in petroleum sector companies.The meeting was attended by Senator Rana Mehmood-ul-Hassan and Senator Amir Waliuddin Chishti virtually via zoom.
Officials of the Petroleum Division briefed the committee on the existing legal and regulatory mechanism for the appointment of board members in petroleum companies. It was informed that the boards comprise independent as well as ex-officio members, appointed for a tenure of three years through a competitive process. The Ministry assured the committee that appointments are made on the basis of relevant experience and professional expertise.
However, the committee raised questions regarding the expertise of certain members on the board of Pakistan State Oil (PSO). The convenor directed the Petroleum Division to present a comprehensive briefing detailing the names, professional expertise, tenure and relevant criteria of members serving on the boards constituted under the Petroleum Division.
The committee also expressed concern that the board of Pakistan Petroleum Limited (PPL) has been functioning through extensions for a prolonged period. It further noted that the legal status of PARCO as a State-Owned Enterprise (SOE) remains unclear. The Petroleum Division informed the committee that the matter has been referred to the Attorney General’s Office for legal opinion to determine the way forward for PARCO.
During the briefing on ex-officio board memberships, members questioned the relevance of the Chairman Federal Board of Revenue (FBR) serving on the boards of petroleum companies. The convenor directed the Petroleum Division to expedite the resolution of PARCO’s status and ensure that the composition of the PPL board is finalized strictly in accordance with applicable laws and policies rather than through repeated extensions.
The committee reiterated its full support for the Petroleum Division in strengthening governance and improving the functioning of boards within the petroleum sector. It also recommended that parliamentarians may be included as board members to enhance parliamentary oversight and accountability.
In light of the evolving regional situation, the convenor further directed the Secretary Petroleum Division to provide an in-camera briefing to the Senate Standing Committee on Petroleum regarding the status of petroleum supplies and contingency planning in view of the reported closure of the Strait of Hormuz amid the ongoing regional conflict.
