ISLAMABAD: A parliamentary sub-committee on Thursday reviewed the legal and regulatory framework governing the boards of petroleum sector companies and raised concerns over the expertise of certain members serving on the board of Pakistan State Oil (PSO).
The meeting of the sub-committee of the Senate Standing Committee on Petroleum was held at Parliament House under the convenorship of Senator Manzoor Ahmed Kakar. It was attended by Senator Rana Mehmood-ul-Hassan and Senator Amir Waliuddin Chishti, who joined the session virtually.
The committee reviewed the legal framework governing the appointment of boards of directors in petroleum sector companies and sought detailed briefings on Pakistan State Oil, Pakistan Petroleum Limited (PPL), and Pak-Arab Refinery Company (PARCO).
During the discussion, committee members questioned the professional expertise of certain individuals serving on the PSO board. The convenor directed the Petroleum Division of Pakistan to present a comprehensive briefing detailing the names, professional backgrounds, tenure, and eligibility criteria of board members serving on boards constituted under the division.
The committee also expressed concern that the board of Pakistan Petroleum Limited has been functioning through repeated extensions for an extended period rather than through fresh appointments.
In addition, the panel noted that the legal status of Pak-Arab Refinery Company as a State-Owned Enterprise (SOE) remains unclear. Officials from the Petroleum Division informed the committee that the matter has been referred to the Office of the Attorney General for Pakistan for legal opinion to determine the future course of action.
During the briefing, officials outlined the existing legal and regulatory procedures for appointing board members in petroleum companies. They said that boards typically include independent and ex officio members who are appointed for a three-year tenure through a competitive selection process based on relevant experience and professional qualifications.
However, committee members also questioned the relevance of certain ex officio appointments, including the role of the Chairman of the Federal Board of Revenue on the boards of petroleum companies.
The convenor directed the Petroleum Division to expedite the resolution of PARCO’s legal status and ensure that the composition of the PPL board is finalized strictly in accordance with applicable laws and policies instead of relying on repeated extensions.
The committee reiterated its support for the Petroleum Division’s efforts to strengthen governance in the petroleum sector and improve the functioning of company boards. Members also suggested that parliamentarians could be included as board members to enhance parliamentary oversight and accountability within the sector.
Story by Wasim Iqbal
