Islamabad, March 3, 2026: A sub-committee of the Senate Standing Committee on Petroleum met at Parliament House Islamabad under the convenorship of Senator Manzoor Ahmed Kakar to review the legal and regulatory framework governing the appointment of Boards of Directors in companies operating under the petroleum sector.
The meeting was attended by Senator Rana Mehmood-ul-Hassan and Senator Amir Waliuddin Chishti, who joined virtually via Zoom.
Officials from the Petroleum Division Pakistan briefed the committee on the existing legal and regulatory mechanism for appointing board members in petroleum companies. The committee was informed that boards include both independent and ex-officio members appointed for a three-year tenure through a competitive process. The ministry maintained that appointments are based on relevant experience and professional expertise.
However, committee members raised concerns about the expertise of certain individuals serving 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 selection criteria of board members across companies operating under the division.
The committee also expressed concern that the board of Pakistan Petroleum Limited (PPL) has been functioning through repeated extensions for a prolonged period. Members further noted that the legal status of Pak-Arab Refinery Company (PARCO) as a State-Owned Enterprise (SOE) remains unclear.
Officials informed the committee that the matter has been referred to the Attorney General’s Office of Pakistan for legal opinion to determine the appropriate course of action regarding PARCO’s status.
During the briefing on ex-officio memberships, committee members also questioned the relevance of the Chairman of the 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 support for the Petroleum Division in strengthening governance and improving the performance of boards within the petroleum sector. It also recommended considering the inclusion of parliamentarians on company boards to enhance parliamentary oversight and accountability.
In view of the evolving regional situation, the convenor further directed the Secretary of the Petroleum Division to provide an in-camera briefing to the Senate Standing Committee regarding the status of petroleum supplies and contingency planning, particularly in light of reports about the closure of the Strait of Hormuz amid ongoing regional tensions.
