The standing committee of the Senate on Petroleum and Natural Resources (MP&NR) has opposed Pakistan State Oil (PSO) sell-off and directed the government to revisit its decision of divesting this strategic asset.
Sources said the committee took up the matter in its meeting held in Karachi on March 28 and sought a detailed presentation from the Secretary Privatisation Commission. The minutes of the meeting indicated that PSO sell-off status was the first item of the agenda and it was taken up accordingly for threadbare discussion.
The Secretary Privatisation told the meeting that PSO was offered to the investors and the process was initiated as per government policy for bidding. However, with the case going into litigation it was withheld till the disposal of the case from the court of law.
The meeting was also informed that Privatisation Commission was actively following the case before the court of law to protect the state interest. PSO sell off has been controversial at different forums. It was questioned by the armed forces at an early stage.
The General Headquarters (GHQ) on behalf the armed forces showed serious concern over offering PSO for divestment and demanded of the government to review its decision. The GHQ quoted Pakistan Telecommunication Company Limited (PTCL) post privatisation situation in its communiqué to the government as a reference. The GHQ said PTCL post privatisation has resulted in increased Indian ingress which was a serious matter and a cause of concern for the armed forces. However, after a series of meetings with the Privatisation Commission the GHQ changed its stance and agreed with the government to PSO sell-off.
PSO is a public sector company which caters over 62 percent demand of oil of the local market. It is also responsible for importing fuel oil for the power producing thermal units.
PSO was created soon after 1971 war when Burma Oil and other upstream companies had refused to lift oil for Pakistan from Gulf during the war and made Pakistan an oil-starved country. The standing committee members recalled the events of the 1971 war and asked the government representatives where they took this aspect into consideration before offering the entity for privatisation.