ISLAMABAD: The proposed relocation of Pakistan Petroleum Ltd’s (PPL) headquarters from Karachi to Islamabad has sparked a sharp exchange in National Assembly on Tuesday, with the Pakistan People’s Party (PPP), challenging the government’s rationale and warning of the financial implications of the move.
Defending the proposal, Petroleum Minister Ali Pervaiz Malik told the House that the relocation had been endorsed by PPL’s management and board of directors, insisting that it was intended to cut costs and improve administrative efficiency rather than serve any political purpose.
The controversy unfolded as PPP MNA Naveed Qamar took up a calling-attention notice on the proposed shift.
The proceedings got off to an awkward start when the petroleum minister, the Petroleum Division secretary and other officials were absent, prompting NA Speaker Ayaz Sadiq to express strong displeasure and direct the parliamentary secretary for petroleum to summon them to the House.
Malik arrived after a brief break and apologised to the speaker, explaining that a meeting at the Prime Minister’s Office had delayed his attendance.
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Seeking to allay concerns over Karachi’s status, the minister said PPL’s operational assets would continue functioning as before and its operational and field offices would remain in Karachi.
Most petroleum companies, he pointed out, maintained offices in Islamabad, making the capital a more convenient base for administrative coordination.
He said three previous boards, along with the company’s management, had decided to shift the headquarters, arguing that the move would help reduce expenditure and improve performance.
He also stressed that the decision was part of a wider reform process at PPL and was not politically motivated.
The government’s explanation, however, failed to satisfy the PPP lawmakers.
Parliamentary Secretary for Petroleum Mian Khan Bugti said PPL spent around Rs120 million annually on officers’ travel, presenting the figure as a key justification for restructuring the company’s operations.
Qamar remained unconvinced, arguing that moving the entire headquarters was inappropriate and criticising the minister’s response as inadequate.
PPP MNA Nafisa Shah mounted a more pointed challenge, recalling that the same minister had stated in 2025 that PPL would not be shifted from Karachi to Islamabad.
She accused the government of centralising functions at the expense of the provinces and questioned whether the proposed relocation made economic sense.
“You are shifting everything from the provinces to the centre,” she said, adding that PPL’s performance in the gas sector had resulted in losses of Rs3,600 billion.
“According to estimates, shifting PPL from Karachi to Islamabad would cost Rs4 billion,” she said, raising questions about the financial prudence of the plan.
The House also took up petroleum pricing through a separate calling-attention notice moved by MNA Alia Kamran.
Malik said prices were determined in line with international market trends to ensure uninterrupted supplies and prevent profiteering and hoarding.
Since Pakistan imported petrol, he explained, the pricing mechanism was based on a seven-day average, although prices were announced daily.
He added that petroleum companies had reduced their profit margins on the prime minister’s directives, allowing the government to announce a larger cut in petrol and diesel prices a day earlier.
Meanwhile, State Minister for Finance Bilal Kayani assured the House that the Export Facilitation Scheme (EFS) would continue, with safeguards being introduced to prevent its misuse.
Responding to a point of order by Sharmila Faruqui, he said the government was consulting exporters, the All Pakistan Textile Mills Association (APTMA), local weavers and garment manufacturers to address concerns across the textile value chain.
Under the scheme, exporters can import raw materials duty-free for export production. He said corrective measures were being taken to prevent diversion of these materials to the domestic market, protect local manufacturers and ensure transparent implementation without unnecessarily restricting exporters.
Copyright Business Recorder, 2026