The Sub-Committee of the Senate Standing Committee on Petroleum, chaired by Senator Manzoor Ahmed Kakar, convened at Parliament House to review the legal and regulatory framework governing board appointments in petroleum sector companies. Senators Rana Mehmood-ul-Hassan and Amir Waliuddin Chishti attended the session virtually via Zoom.
Officials from the Petroleum Division briefed the committee on the current mechanism for appointing board members in petroleum companies. Boards are composed of independent and ex-officio members, appointed for three-year tenures through a competitive process based on professional expertise and relevant experience.
The committee, however, raised questions regarding the expertise of certain members on the Pakistan State Oil (PSO) board. The convenor directed the Petroleum Division to submit a comprehensive briefing, detailing the names, professional backgrounds, tenure, and eligibility criteria of board members under the division’s jurisdiction.
The committee noted that Pakistan Petroleum Limited (PPL) has been functioning under extended board tenures for a prolonged period. Concerns were also raised regarding the legal status of PARCO as a State-Owned Enterprise (SOE). Officials confirmed that the matter has been referred to the Attorney General’s Office for a legal opinion.
Members questioned the relevance of the Chairman FBR serving on petroleum company boards. The convenor instructed the Petroleum Division to expedite PARCO’s legal status and ensure that PPL’s board composition is finalized according to applicable laws, rather than through repeated extensions.
The committee expressed support for the Petroleum Division in strengthening governance and enhancing board functioning. It recommended that parliamentarians be included as board members to improve oversight and accountability.
Given the regional geopolitical situation, particularly the reported closure of the Strait of Hormuz, the convenor directed the Secretary Petroleum Division to provide an in-camera briefing to the Senate Standing Committee on Petroleum regarding petroleum supply status and contingency planning.
