Islamabad: A Sub-Committee of the Senate Standing Committee on Petroleum convened at Parliament Lodges under the leadership of Senator Manzoor Ahmad Kakar to assess the governance of board appointments in the petroleum sector. The meeting, attended by Senator Rana Mahmood ul Hassan, the Special Secretary of the Ministry of Energy, and other officials, focused on identifying governance gaps and developing recommendations for improvement.

According to Senate of Pakistan, the Committee conducted a detailed analysis of board appointments across several entities, including Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company Limited (OGDCL). Concerns were raised by Senator Kakar regarding the inclusion of individuals on the Exit Control List and those with audit objections on the shortlist for the PPL board. The emphasis was placed on ensuring merit-based appointments to key positions.

The Special Secretary of the Ministry of Energy informed the Committee of the removal of one candidate from the PPL shortlist following an internal inquiry. It was clarified that board appointments are now governed by the Companies Act, shifting the authority from the government to the respective Boards of Directors.

The Sub-Committee proposed amendments to the State-Owned Enterprises Act, 2023, to return the appointment authority of Managing Directors and Chief Executive Officers to the Federal Government, while maintaining the advisory role of the Boards. Recommendations also included establishing a transparent performance evaluation mechanism to ensure accountability and alignment with national policy.

Additionally, the Committee was briefed on Pakistan’s petroleum supply, noting the country’s reliance on imports from Gulf countries and the strategic importance of the Strait of Hormuz. The current petroleum reserves are sufficient for one month amid increased oil consumption. In the gas sector, supply from Qatar was affected by recent refinery attacks, though exploration activities continue with new reserves discovered.

On the topic of LPG, it was reported that 50 percent is imported from Iran, with the rest sourced locally and from other countries. The meeting concluded with Senator Kakar emphasizing the need for transparency and effective oversight in utilizing national resources.