Petroleum Division finalizes summary for restructuring of five companies’ BoDs

March 28, 2019: The Petroleum Division has finalized its summary for restructuring of Boards of Directors (BoDs) of Sui Northern Gas Company Limited, Sui Southern Gas Company, Oil and Gas Development Company Limited, Pakistan Petroleum Limited and Pakistan Mineral Development Corporation.

“The summary is likely to be presented in next meeting of the Federal Cabinet for approval,” an official privy to the Petroleum sector developments said on Thursday.

He said the restructuring in public sector organizations was being carried out to improve their efficiency and transform them into profit-earning entities so that they could contribute to national exchequer vibrantly.

Answering a question, the official said fresh appointments would be made in the BoDs, which would be on merit and through a transparent manner after completing all codal formalities without any political influence.

In the proposed restructuring, provincial representation had also been ensured and it was for the first time in the country's corporate history that women had been also been made part of the BoDs, he said.

He said the government had already restructured the BoD of Pakistan State Oil, hoping that it would help improve efficiency of the company.

Following the restructuring, the new BoDs would initiate the process of appointing their respective companies heads through a transparent manner without any political influence.

Commenting on financial issues of some companies, he said the SNGPL and SSGC suffered 11 percent and 13 percent Unaccounted for Gas (UFG) losses amounting to Rs 22 billion and Rs 26 billion respectively due to wrong strategy of the previous government.

During the last five years, UFG losses registered one percent increase every year, which caused Rs 154 loss to both the companies and increase in the gas tariff.

Now, the minister said, the companies had been given the target to reduce the UFG by one per cent every year.

(APP)

Posted on: 2019-03-28T15:10:00+05:00

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