Pakistan Petroleum’s headquarters relocation to Islamabad faces PPP opposition; govt denies political motives
Petroleum minister says PPL’s operational assets and field offices will remain in Karachi, while relocating headquarters to Islamabad will improve coordination with government departments
The proposed relocation of Pakistan Petroleum Limited's (PPL) headquarters from Karachi to Islamabad has drawn opposition from Pakistan Peoples Party (PPP) lawmakers, who questioned the financial justification for the move and cited an estimated cost of Rs4 billion.
During a National Assembly session on Tuesday, Petroleum Minister Ali Pervaiz Malik defended the proposal, saying it had been approved by PPL's management and three previous boards of directors to reduce expenditure and improve administrative efficiency.
Responding to a calling-attention notice moved by PPP MNA Naveed Qamar, the minister said PPL's operational assets and field offices would remain in Karachi, while shifting the headquarters would facilitate coordination with government departments in Islamabad.
He maintained that the decision was part of broader reforms at PPL and was not politically motivated.
Parliamentary Secretary for Petroleum Mian Khan Bugti said the company spent approximately Rs120 million annually on officers' travel, presenting the expenditure as one of the reasons for the proposed restructuring.
However, Qamar questioned the need to relocate the entire headquarters, arguing that the government's explanation was inadequate.
PPP MNA Nafisa Shah recalled that the petroleum minister had stated in 2025 that PPL would not be relocated from Karachi.
She criticised the proposed centralisation of operations and claimed that shifting the headquarters would cost approximately Rs4 billion. She also raised concerns about PPL's performance, citing losses of Rs3,600 billion in the gas sector.
Pakistan Petroleum Limited (PPL) is a state-owned oil and gas exploration and production company headquartered in Karachi. One of Pakistan’s largest companies in the sector, PPL accounts for more than 20% of the country’s total natural gas supplies.
Established in 1950, the company is primarily engaged in the exploration, prospecting, development and production of hydrocarbons and mineral resources.
Earlier, National Assembly Speaker Ayaz Sadiq expressed displeasure over the absence of the petroleum minister and senior Petroleum Division officials when the matter was taken up.
Malik subsequently arrived and apologised, explaining that a meeting at the Prime Minister's Office had delayed his attendance.
