KARACHI: The Petroleum Division has asked Pakistan State Oil (PSO) to halt senior-level recruitment and defer key management appointments as the tenure of its current Board of Directors approaches its expiry later this month.
According to an official communication issued by the ministry, the statutory term of PSO’s board will conclude on May 28, 2026. In anticipation, the government has initiated the process of forming a new board under the framework of the State-Owned Enterprises (Governance and Operations) Act, 2023, alongside the SOEs Policy, 2023.
PSO, the country’s largest oil marketing company, plays a critical role in ensuring the uninterrupted supply of petroleum products nationwide. Given this strategic importance, the ministry emphasised that decisions related to human resources, particularly at senior management level, carry significant weight and should align with the vision of the incoming leadership.
The directive instructs the current board to suspend recruitment for senior management positions and refrain from making major appointment or transfer decisions. These responsibilities will instead fall under the purview of the new board once constituted.
Sources, however, described the Petroleum Division’s letter as a direct intervention in PSO’s affairs, warning that it could compromise transparent operations at a time when the oil supply chain is under scrutiny following a sharp rise in global prices due to the closure of the Strait of Hormuz.
They added that issues had surfaced in recent weeks after PSO imported high-speed diesel (HSD), with questions raised over the price at which the fuel was procured.Officials, however, said the move was aimed at ensuring transparency, continuity and alignment with long-term governance priorities. By allowing the incoming board to make keystaffing decisions, the government intends to provide it with full authority to shape PSO’s strategic direction and leadership structure. They added that concerns over the price of imported HSD were unjustified, citing elevated premiums in international markets and the need to maintain domestic supply.
Officials said the development comes as reforms in state-owned enterprises remain a government priority, with increased focus on governance standards, efficiency and accountability. Further updates on the composition of the new PSO board are expected in the coming weeks, they added.
