From forerunner to far-runner

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As Pakistan Petroleum Limited (PPL) marks 75 years of service with a ceremonial celebration at the Karachi Golf Club on 17 June 2025, it is not only a time to recognise longevity, but to reflect critically on what sustains corporate institutions — and what imperils them.

Corporate history is filled with tales of giants that faltered. The East India Company, established in 1600, grew to dominate trade across Asia. For over two centuries, it enjoyed extraordinary power — military, economic and political. But in the aftermath of the Indian Mutiny of 1857, it was dissolved by the British Crown. A potent symbol of unchecked expansion, its fate remains a cautionary tale of what happens when institutions outgrow accountability.

A more recent and instructive example is the Hudson's Bay Company (HBC) of Canada. Founded in 1670, HBC was one of the oldest and most iconic companies in North America. Originally created as a fur trading business, it evolved into a vast retail empire, owning department stores, land holdings and financial interests.

For over three and a half centuries, it adapted to changing markets and consumer needs. But cracks began to show in the early 21st century. Faced with mounting digital competition, shifting shopping behaviours and strategic indecision, HBC failed to reinvent itself fast enough. After years of losses and restructuring, the company filed for creditor protection in March 2025 and officially ceased operations in June.

The fall of HBC underscores a central truth: legacy cannot be taken for granted. Even the most enduring companies must remain rooted in operational logic and responsive to change.

This brings us to a decision that is currently casting a shadow over PPL's otherwise commendable milestone — the reported plan to relocate its head office from Karachi to Islamabad. This move raises serious concerns not only about efficiency but also about motive.

PPL's operational backbone lies in Sindh and Balochistan. Its major gas fields - Sui, Kandhkot, Mazarani and many others - are located in these provinces. The company's ventures in lead, zinc and iron ore are Balochistan-based. Bolan Mining Enterprises, a 50:50 joint venture with the Government of Balochistan, produces barite from Khuzdar and is headquartered in Quetta.

Most technical and operational coordination, along with joint ventures and field logistics, are centred in the southern region of the country. Above all, PPL's 8.33% share in Reko Diq gold mine, a game changer for the Company, is also situated in Balochistan.

Thus, a shift to Islamabad appears neither administratively necessary nor economically sound. Rather, it seems to reflect parochial considerations, disconnected from ground realities. Such a move risks weakening the company's alignment with its core operations and alienating the very regions that support its business.

Strategically, it would place management further away from operational hubs, complicate coordination and increase costs — without any clear upside. Symbolically, it risks diminishing Karachi's historic role as a corporate and industrial hub, and more critically, sending the wrong message about national cohesion and balanced development.

At a time when PPL should be consolidating its position, investing in exploration and preparing for energy transition challenges, such a move seems both untimely and unwise. It is hoped that the Petroleum Minister, known for his energy and intellect, will examine this matter closely. Pragmatism, not symbolism, must guide policy.

The story of corporate survival is rarely about grandeur — it is about good judgment. Hudson's Bay did not fall overnight. It fell by drifting away from its strengths and delaying key decisions. PPL has the experience and legacy to endure — but only if it avoids complacency and stays connected to its operational roots.

Longevity in business is not just about staying alive — it is about staying relevant. Let us hope PPL chooses wisely as it steps into its next quarter century. My thoughts are best reflected in these verses by Iftikhar Arif:

Yeh kya keh khaak huwai hum jahan wahin kay nahin;

Jo hum yahan kay nahin hain to phir kahin kay nahin

Wafa sarisht mai hoti to samnay aati;

Woh kya falak sai nibhain gai jo zameen kay nahin