POL cos’ legal framework review: Senate panel questions expertise of Petroleum board

ISLAMABAD: A parliamentary panel on Thursday reviewed the legal framework governing the boards of petroleum sector companies, raising questions about the expertise of certain members of the board of Pakistan State Oil (PSO).

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.

The sub-committee reviewed the legal framework for petroleum boards and sought a detailed briefing on PSO, Pakistan Petroleum Limited (PPL), and PARCO.

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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 further expressed concern that the board of 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.

Officials of the Petroleum Division briefed the committee on the existing legal and regulatory mechanisms 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 based on relevant experience and professional expertise.

During the briefing on ex officio board memberships, members 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 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.

Copyright Business Recorder, 2026