KARACHI: The Ministry of Petroleum Division Pakistan has directed Pakistan State Oil to suspend senior-level hiring and defer key management appointments as the tenure of its current Board of Directors nears completion later this month.
According to an official communication, the existing PSO board is set to complete its statutory term on May 28, 2026. In anticipation, the government has initiated the process of constituting a new board under the State-Owned Enterprises (Governance and Operations) Act 2023 and the SOEs Policy 2023.
PSO, the country’s largest oil marketing company, is responsible for ensuring uninterrupted petroleum supply nationwide. The Petroleum Division stated that major human resource decisions—particularly at senior management level—should be aligned with the strategic direction of the incoming board to ensure continuity and governance consistency.
The directive instructs the current board to avoid senior recruitment, major appointments, and key transfers until the new board is in place, which will assume full authority over such decisions.
However, sources described the move as an unusual intervention in PSO’s internal affairs, raising concerns about operational transparency at a time when global oil markets remain volatile due to supply disruptions linked to geopolitical tensions.
Some reports also pointed to recent scrutiny over PSO’s high-speed diesel imports, particularly questions surrounding procurement pricing amid elevated international premiums. Officials, however, rejected these concerns, stating that the decision was intended to enhance transparency and strengthen governance practices.
The government maintains that broader reforms in state-owned enterprises remain a priority, with a focus on improving efficiency, accountability, and institutional stability. The composition of the new PSO board is expected to be finalised in the coming weeks.
