Pakistan Petroleum Limited (PPL) is relocating more than 500 employees from Karachi to a new head office in Islamabad. This is a big and brutal shift for a company that has operated from Karachi for more than 70 years, ProPakistani has learnt.
The move has raised concerns among employees about its benefits, particularly as a big portion of PPL’s business and assets remain in Sindh and Balochistan.
Sources alleged that the decision was taken by senior management and members of the board. Employees have to move as well. As a corporate entity, PPL has the authority to determine the location of its head office and restructure its operations according to its business requirements.
Staff Worried
Sources said employees were allegedly not consulted before the relocation decision and that some are considering resigning because moving their families to Islamabad would create huge financial and personal difficulties.
Their main concerns also include education, healthcare, family commitments and other personal circumstances.
Sources further alleged that senior management warned employees of possible legal action if they resign.
On the staff side, normal work has been affected, with employees in depression and not working properly for almost two weeks since the announcement.
Relocation Cost
The financial cost of moving more than 500 employees and their families has been estimated the total relocation cost at between Rs. 600 million and Rs. 1 billion.
A relocation package for an employee with a family of four could allegedly cost around Rs. 1 million, including travel, temporary accommodation and baggage expenses.
Shifting office records, vehicles, warehouse material and other assets could add around Rs. 100 million, sources added.
What Is the Business Case?
PPL could potentially benefit from having its head office in Islamabad through closer access to federal ministries, regulators, policymakers, investors and other agencies.
But there is no clear evidence yet showing that the relocation would generate sufficient operational or financial benefits to justify the cost.
PPL’s extensive operations in Sindh and Balochistan also raise questions about whether the company expects any operational advantage from having its central administration closer to Islamabad. For most observers, this move makes absolutely no sense.
ProPakistani reached out to PPL for details about the rationale behind the relocation, its benefits, estimated costs and employee relocation arrangements. The company’s response will be added when received.
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