PSO Seeks Freedom From Govt to Compete Against International Oil Companies

Pakistan State Oil (PSO) wants more freedom from the federal government to compete against international oil marketing companies (OMCs) that have entered Pakistan’s petroleum market. The PSO board of directors has requested exemptions from the Public Procurement Regulatory Authority (PPRA) rules and sought additional authority for swift decision-making to maintain its market share, reported a national daily. In a letter to the petroleum secretary, PSO highlighted its role as the only public sector oil marketing company responsible for maintaining the country’s energy supply chain. It argued that public procurement laws on price disclosures and issuing tenders put it at a disadvantage. Its competitors can secure lower prices through more flexible arrangements. PSO said these regulatory restrictions hinder its ability to operate profitably and sustainably, warning that the current regime threatens its long-term business strategy. The state oil company argued that delegating more power to its Board of Management (BOM) would allow it to operate more autonomously and efficiently. Under this proposal, while the BOM would have greater authority, the federal government would still oversee appointments and policy directives.