Latest news with #PARCO
Business Recorder
3 days ago
- Business
- Business Recorder
Minister visits PARCO headquarters
KARACHI: Federal Minister for Petroleum, Ali Pervaiz Malik, accompanied by the Additional Secretary (Policy), Petroleum Division Zafar Abbas visited the Corporate Headquarters of Pak-Arab Refinery Limited (PARCO). He was received by Irteza Ali Qureshi, Managing Director, PARCO, along with the Company's senior leadership team. During the visit, the minister was given a comprehensive briefing on PARCO's modular growth strategy, its fifty-year legacy of operational excellence, and its future strategic roadmap. The briefing highlighted PARCO's vital role in strengthening Pakistan's energy infrastructure through innovation, efficiency, and sustainability. Pervaiz Malik acknowledged the significance of PARCO's contribution to Pakistan's energy landscape and appreciated the Company's efforts to maintain high standards of operational excellence and strategic foresight. His visit underscores the government's support for institutions like PARCO that are playing a pivotal role in meeting the country's growing energy demand. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
PARCO board: Senate body expresses reservations over selection criteria
ISLAMABAD: A parliamentary panel on Tuesday expressed its serious reservations over appointment of a parliamentarian and former bureaucrat as members of the board of directors of Pak-Arab Refinery Limited (PARCO). The Senate Standing Committee on Petroleum held its meeting on Tuesday under chairmanship of Umer Farooq which discussed in detail the tenure of managing directors and composition of boards of all oil and gas companies. Member Committee Saadia Abbasi criticised the selection criteria of the board of PARCO which has Federal Minister Senator Ahad Khan Cheema as member and some retired bureaucrats on the board. Senator Saadia Abbasi asked the Minister for Petroleum, 'Can a senator be appointed as a board member if yes than other parliamentarians should also be provide opportunity to become a member of the board to show their ability.' She responded to Federal Minister for Petroleum Ali Pervaiz Malik's statement that the board had been constituted under public limited company Act. He further contended that Ahad Khan was not part of parliament when the board was constituted. However, she insisted that she remembered he was part of interim government at that time. In 2023, Ahad Cheema was appointed as the Adviser to the Prime Minister on Establishment Division following Shehbaz Sharif's appointment as prime minister of Pakistan. He continued to serve in this role during the caretaker government after Shehbaz Sharif's first term ended. However, the Election Commission of Pakistan ordered the caretaker government to remove Cheema from the caretaker cabinet following a petition filed against him. The president of Pakistan approved his removal in December 2023. The tenure of present board of the PARCO has been from May 22, 2023 to May 21, 2026 for a period of three years. She showed her serious reservation on a retired bureaucrat Mohammad Jehanzeb Khan as independent director of the board. She argued that other competent former bureaucrat must have the equal opportunity to serve the board. In ten-member board, Secretary Petroleum Division Momen Agha is chairman, Secretary Finance Division (Ex-officio Director), MD (Executive), AftabHussain, Ahad Khan Cheema, Mohammad Jahanzeb Khan (independent directors), Adnan Omar Mohamad Bu Fateem (Vice Chairman), Zayed Al Mazrouei, Friedrich Danzinger, Muqeet Amin Bawa (Abu Dhabi Petroleum Investments LLC). PARCO is a fully integrated energy company and is one of the largest companies in Pakistan's corporate sector. A Joint Venture between the Government of Pakistan (60 per cent) and the Emirate of Abu Dhabi (40 per cent), PARCO is a leading energy company incorporated as a public limited company in 1974 through its Mubadala Investment Company. A parliamentary panel on Tuesday recommended the Petroleum Division to carry out audit of the accounts of Oil and Gas Development Company from international renowned international firms as the company is paying Rs 4.5 million per day for a rented oil rig. Copyright Business Recorder, 2025
Express Tribune
23-02-2025
- Business
- Express Tribune
Dealers reject oil price deregulation
Despite plunge in oil prices, the company was making profits due to its unique business model, said officials. In the last ten years, PARCO has made payments of Rs600 billion to the government on account of dividends and various taxes and levies. PHOTO: FILE The All Pakistan Petroleum Dealers Association (PPDA) on Sunday rejected the government's decision to deregulate oil prices, warning of a countrywide strike if the move was not reversed. The association cautioned that deregulating oil pricing would allow a foreign company to dominate the country's energy sector, describing the decision as economic suicide. Hassan Shah, the association's spokesperson, criticized the move, stating that granting a powerful Saudi oil company complete control over Pakistan's fragile oil market — without consulting stakeholders — was not in the country's best interests. He warned that deregulation would disrupt the entire supply chain, leading to a monopoly in the oil market. Pakistani refineries, he added, would be forced to shut down as they lack the financial capacity to compete with multinational corporations. Shah stressed that eliminating competition and handing full control to a single foreign company would be a serious strategic mistake. He highlighted that Pakistan's fuel reserves typically last no more than 15 days. In contrast, free-market principles work in countries that maintain months-long oil stockpiles to ensure supply chain stability. The deregulation of lubricants and HOBC (high-octane blending component), he noted, has not benefited consumers and has instead created a cartel-like oligopoly. Moreover, he criticized the Competition Commission of Pakistan (CCP) for failing to ensure transparency in the system, unlike regulatory bodies in Western nations. As a result, he warned, consumers would end up paying higher prices rather than benefiting from market liberalization. Shah further cautioned that deregulation would fuel inflation, weaken the exchange rate, and inflict lasting damage on an already struggling economy. Given the unpredictability of Pakistan's oil market, he argued, no single entity should have full authority over fuel pricing, as it could trigger a financial disaster. He urged the Defence Ministry to assess the strategic implications of the decision, while calling on the government and the central bank to examine its potential impact on inflation and currency stability. Policymakers, he asserted, should not risk the country's energy security to appease a single corporation. He warned that deregulation would lead to a steady rise in oil prices under various pretexts, harming both businesses and the public. Shah clarified that while Western nations have successfully implemented free-market fuel pricing, they did so only after ensuring a smooth supply chain and maintaining months-long reserves. Pakistan, on the other hand, struggles to maintain fuel stockpiles beyond 15 days, with frequent shortages and dryouts, particularly in smaller cities. He argued that only strict regulation can prevent refineries, oil marketing companies (OMCs), and fuel stations from artificially inflating prices. Allowing consumers to be exploited, he warned, would destabilize the market and drive up costs across all sectors. Given that fuel demand is highly inelastic, deregulation would have devastating consequences. Shah urged the government to abandon the plan, insisting that deregulating oil prices would push the country toward an economic crisis.
