Process of hiring OGDCL, PPL MDs drags on

Absence of regular MDs casts negative impact on companies’ performance

ISLAMABAD:

The appointment of chief executive officers of Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) has been delayed further following formation of a committee by the government.

The state-run oil and gas explorers are being run by the acting managing directors for long, which is causing a negative impact on the performance of both companies.

These companies are listed on the stock market but the absence of permanent MDs has sparked uncertainty among investors.

According to sources, the process initiated eight months ago for the appointment of MDs of OGDCL and PPL, has so far produced no result as relevant summaries are lying with the Prime Minister’s Office.

They said the undue delay in the appointment of MDs had badly affected the performance of both exploration and production (E&P) companies. The hiring process has allegedly been halted with the constitution of a committee by the PM Office.

Efforts were allegedly being made to force the candidates, who had applied for the top slot of both companies, to say they were not willing to join the companies, said sources.

An official has been tasked with contacting the candidates and check their willingness. “When any candidate shows his willingness, then a complete silence is adopted and this is allegedly being done to dishearten the candidates,” said the sources.

The PM Office had formed the committee, headed by the prime minister himself, to review the proposals and firm up recommendations for the appointment of MDs of OGDCL and PPL.

Minister of state for petroleum is a member of the committee while ex-PM Shahid Khaqan Abbasi, adviser to the PM on establishment, and Petroleum Division secretary have been included on a special invitation.

The two E&P companies are being run on an ad hoc basis. OGDCL is being run by Khalid Subhani on an acting charge as a stopgap measure since September last year.

PPL is being run by Moin Raza Khan, also on acting charge, since January 2018, getting six-monthly extensions even after reaching the age of retirement.

Appointments on such positions as per the constitution can only be made or the tenure can only be extended by the approval of the federal cabinet.

Sources said summaries for both the appointments, along with recommendations of the ministry, had been sent to the PM Office a couple of months ago, but the hiring was still to be finalised.

Though the PM has said on many occasions that “Pakistan Speed” will be introduced to make fast decisions, the two companies with estimated combined earnings of almost $1.5 billion have been running without a permanent MD.

Published in The Express Tribune, August 20^th, 2022.

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