Pakistan State Oil (PSO) has requested greater autonomy from the federal government to better compete against international oil marketing companies (OMCs) entering Pakistan’s petroleum market.
The PSO Board of Directors has formally asked for exemptions from the Public Procurement Regulatory Authority (PPRA) rules and sought additional authority to enable quicker decision-making and protect its market share. According to a national daily, PSO outlined these concerns in a letter to the petroleum secretary.
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The letter emphasized PSO’s critical role as the country’s only public sector oil marketing company responsible for maintaining a steady energy supply chain. PSO argued that public procurement laws, such as mandatory price disclosures and issuing tenders, restrict its ability to compete. These rules allow competitors to secure lower prices through more flexible contracts, putting PSO at a disadvantage. The company stressed that these regulatory constraints jeopardize its ability to operate both profitably and sustainably, warning that the current framework threatens its long-term business strategy.
PSO proposed that delegating more decision-making power to its Board of Management (BOM) would enable it to operate more autonomously and respond more efficiently to market dynamics. However, the federal government would still retain oversight regarding appointments and policy guidelines.
