Hiring process: Candidates jockey for coveted job of PSO MD

According to sources, one sitting minister who had also served as Chairman and CEO of Pakistan International Airlines (PIA) was backing Shahid Islam. DESIGN: TALHA KHAN

ISLAMABAD: 

Two strong candidates, with approvals and recommendations from senior bureaucrats, are in the race for becoming Managing Director (MD) Pakistan State Oil (PSO).

Sources told The Express Tribune that former Chairman Pakistan State Oil (PSO) Tariq Karmani, and a former employee of Pakistan International Airlines (PIA) Shahid Islam were strong candidates for the position of MD.

Sources said that one former finance minister was reportedly backing Tariq Karmani, who had also served in PIA. They said that the government had also abolished condition of upper age limit for retired officials like Karmani to qualify them for the post of head of state-owned companies.

According to sources, one sitting minister who had also served as Chairman and CEO of Pakistan International Airlines (PIA) was backing Shahid Islam.

“Shahid Islam has been very close to the minister when both were serving in PIA,” sources said. “If Shahid Islam becomes MD PSO, then Tariq Karmani will be the new chairman of the board of directors of PSO,” sources added.

Amjad Pervez Janjua, acting MD PSO, had also applied for the post.

“If he does not become head of PSO, then he is likely to become Deputy Managing Director (DMD) of PSO,” sources said, adding that the board of directors of PSO had stopped increments of some officials who had moved courts against the company. Current DMD, Jehangir Ali Shah, was one of those officials whose increments had been stopped for going to courts,” officials said, adding that Shah had approached the court seeking a decision to become permanent DMD. He was appointed for a two year term which was going to expire in the next two months.

“Janjua may replace Jehangir Ali Shah as DMD if he is not appointed regular head of PSO,” sources said.

PSO is already facing a financial crunch due to circular debt which had mounted again. “The circular debt may be a gigantic task for the upcoming head of PSO,” sources said, adding that the appointment of head of PSO on political basis may aggravate the financial crunch of the company due to failure in managing the affairs.

Officials said that the government had tried to reduce circular debt by raising power tariff but the debt was still building up and PSO was being hit badly. Officials said that the power sector was still not making timely payments, raising power tariffs and had failed to control the losses which were resulting in circular debt swelling to over Rs225 billion. The recovery of power bills is still slow and power losses are high, but the government has not taken any action resulting in further swelling of circular debt.

According to sources, state-run Pakistan State Oil (PSO) is also in trouble, with receivables against different sectors including power had surged to Rs139 billion. Out of this, Water and Power Regulatory Authority is to pay Rs81.46, Hub Power Company Rs28.6, PIA Rs7.12 and Karachi Electric Supply Company Rs9.9 billion.