Pak Arab Refinery Limited Company


02 Nov 2017

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Research will be Qualitative and exploratory in nature. Data will be collected through primary and secondary sources.


The information of industry practices will be collected through secondary resources, it will assist in identifying practices in petroleum downstream sector. Afterwards data will be further explore through direct contact with industry practitioners, which will be useful for understanding sustainability involvement in these organizations.

The finding will be compared with international references as well, sustainability standards and industry information will be compare.


Population will be oil refinery industry and oil marketing companies.

Sample and Sampling method

Sample will be based on:

In oil refinery companies it will be Pak. Arab Refinery (PARCO), Attock Refinery Limited (ARL) and Byco Oil Pakistan Limited (BOPL).

In Oil Marketing Company (OMC) sample will be based on Pakistan State Oil, Shell, and chevron.

Software Employed

Microsoft word and Microsoft Excel

Measurement/Instrument Selection

The questionnaire will be used to identify the highlighted things, interview also be taken from convenient sources to get further information and practices.

Plan of analysis

Questionnaire and interview will be analyzed through the sustainability and triple bottom line prospectus, they will determine and identify the organization practice in context of Environment, Social and Economic.




Practices for Sustainability






Environmental Projects

Renewable Energy

Co2 Programs

Recycle, Reuse

Spreading Education


Growth (Overcome Shortage)




Pak Arab Refinery Limited Company (PARCO)

Pak Arab Refinery Limited Company (PARCO) was established in 1974, as a joint venture between Government of Pakistan and Emirate of Abu Dhabi. 60% of shares are held by Government of Pakistan and 40 % are held by emirate of Abu Dhabi under Abu Dhabi Petroleum Investment Company, a subsidiary group of International Petroleum Investment Company.

PARCO business activates include Refining, Transportation, Storage and Marketing. PARCO has become a strategic supplier of fuel in Pakistan, It has a marketing joint venture with TOTAL (Frances), refining capacity of 100,000 BPD, storage capacity of over one million metric tons, and is in technical support venture with OMV (Austria). Making PARCO an integrate energycompany and a key player in the country’s strategic oil supply and logistics.

PARCO include Environment, Safety and Cooperate Social responsibility in sustainability, International OHSAS regulation 18001 have become an integral part of management system to guarantee the health and safety of its employees. It is the leading companies that produce more friendly fuel and High speed diesel by its EURO II refinery process, PARCO is also concern toward the environmental impact, and proper disposal of industrial waste.

In order to reduce its environmental impact PARCO has been involve in designing and implementing many Environmental Programs and Policies. One of such polices is about Responsible Operations PARCO believe that environment should be protected and be least harm. Gas emission should be monitored closely and the process should be improved, for example Low NOx (Nitrous Oxide) burners and Sulfur removal from fuel gases. PARCO HSE Department proactively identifies, minimizes and mitigates any situation that has the potential to cause harm to the health and safety of its employees, contractors, the public and the environment. Secondly Perverting the nature at PARCO prioritize as PARCO’s pipeline travels through Kirthar National Park, it plays an active role in wildlife preservation and makes significant contributions to Sindh Wild Life Department, Sindh Environmental Protection Agency (EPA), Research & Development Projects, and National Environmental Quality Standards (NEQS). In addition PARCO has strictly enforced a no-hunting, no-trapping, no-harassment policy. Driving in night through Kirthar National Park (KNP) and MahalKohistan Wildlife Sanctuary (MKWS) is restricted. Installation of tube well, construction of pond for crocodiles and protection of endangered species are carried out.

Even the waste water is through a proper procedure that is environmental friendly. PARCO also has its own Effluent treatment plant that collect all the waste water from the refinery and through skimming, neutralization, dissolved air floatation, aeration, clarification, filtration and drying operations, the effluent water is brought within NEQs limits before discharge into local drainage or reuse for plants. EPA also conduct underground water test and Ambient air test every 2 year of the surrounding areas to ensure that the community nearby is using safe underground water and monitoring NOx, SOx, and CO level in air. The refinery process of PARCO is euro II that is capable of producing Euro II HSD.

PARCO has promptly responded to any natural calamities, such as the earthquake or floods. The floods in 2010, PARCO contributed of Rs 40 million to Prime Minister’s Flood Relief Fund,PARCOIAN’SFLOOD RELIEF account was also opened in the company that contributed over Rs 10 million. These contributions serve around 35,000 flood affected by providing cooked food, more than 1,600 dry food packets. 7,300 flood affected were treated at Medical Camps and 250 families were provided tented accommodation. PARCO also launched an expanded Rs 60 million rehabilitation program to rebuild homes destroyed by floods. In 2011, again provided approximately 750 dry ration packets, 130 tented.

PARCO consider the United Nations Global Compact’s Ten Principles for corporate social responsible. Under these principles PARCO have initiated a many program. The Schools and Clinics Support is one of such program, with an aim to serve the local area residing near its refinery. PARCO has also assisted around 60 Government institutions to developing infrastructure, procurement of equipment, to help them sustain their operations, providing basic health facilities to the communities, construction of classrooms, boundary walls, toilets, underground & overhead water tanks; repair, maintenance and refurbishment of existing facilities, electrification, boring for underground water etc. The institutions were also provided furniture items, water coolers, air-conditioners, deep freezers, fans, medical equipment’s, and medicines etc. While along the pipeline of PARCO 10,000 children, in 48 institutions were offered education.

PARCO education program are not redistricted to rural areas, TCF (The Citizens Foundation) is an active partner of PARCO that has developed two Campuses in QasbaGujrat, Muzaffargarh and Yousuf Goth, Karachi in April 2011. Furthermore, WWF Pakistan has also conducted a Spellathon Project in schools that are being supported by PARCO, National Commission for Human Development (NCHD) held Literacy Centers to improve standard of living, hygiene and health and uneducated females are being taught to read, write and learn the basics of mathematics within five months.

Health initiate are carried under a program of Community Welfare Clinic that provide free of charge medical assistance, Free Eye camps, and A Mobile Clinic. A Road Safety program provide drivers training to comply with Road Safety Rules, PARCO has also partner with National Highways and Motorway Police (NH&MP) to run campaigns on Road Safety by the name of "Safar Asaan" in Urdu language. The HSE department has also drafted polices specially to priorities Employee Care, under which late sittings are discourages, work-life balance is maintained. Employees have also been provided with vast In-house facilities such as Bowling Alleys, an Officers Club, squash and tennis courts, and swimming pools. Tournaments are also held to improve employee’s physical fitness. Scholarships and educational support is also provided to staff. PARCO`s Mid-Country Refinery (MCR) has a School and Ibn-e-Sina Hospital that provide quality education and medical assistance. Another program annually offer sponsorship to 5 Non-Management Staff and 2 Management Staff for "Hajj" (Holy Pilgrimage) annually and dowry grant for the daughters of Non-Management staff.

Byco Petroleum Pakistan limited

BycoPetroleumPakistan limited was established in 1995 as public limited company. In 2004, at MouzaKund, Hub Balochistan, Byco installed a refinery which used to process 30,000 barrels per day. In 2008, the company decided to expand their operations and started petroleum marketing business. In 2008, Byco decided to install a larger refinery in the country, which can produce 120,000 barrels per day, under the new company Byco Oil Pakistan Limited. In 2012, they successfully installed new refinery and become the largest oil refinery in Pakistan. The Single Point Mooring Project, the floating port which can handle very large petroleum cargo vessels. The workforce of Byco is around 800 all over the country.

Byco is Pakistan's largest refinery which deals in oil refining, petroleum marketing, chemicals manufacturing and petroleum logistics. Byco target is get higher profits and focus on the environmental, social, health and safety factors. Byco has the largest storage capacity and greater logistics network that it can easily handle the movements of petroleum from ne place to another. Byco has retail outlets in around 80 cities of Pakistan.

In Byco, all the employees and management believes that they all are responsible for every negative or positive impact on the environment, health and safety. Byco makes every possible effort for continuous improvement and implement best practices so that it will have positive impact. To make this possible Byco gives appropriate training to the employees and educate them.

Moreover, Byco is working for the well-being of the society in which they operate and live in. It has provided fresh water for the people, who live in MouzaKund, relief camps for the flood victims in 2010, promote sports in nearby areas and developed the infrastructure of MouzaKund and areas nearby by repairing road.

Byco is also concerned about the environmental factors. It is continuously working on reducing carbon footprints for that it is reducing carbon emission, reducing wastages and uses every possible way to use the recycled materials. Moreover, Byco is working on management for the safety of EHS, so that they can take immediate action in case of any emergency.

Byco is also focusing on the safety of its employees and for that the company has contractors who support them to look all the safety aspects and follow their Environmental, Health and Safety (EHS) procedures and policies.

To ensure EHS procedures and policies work smoothly, Byco has set benchmark for continuous improvement and new opportunities. Keep on monitoring either the EHS procedures are being followed properly or not.

Attock Refinery Limited

Attock is the Pakistan’s third largest refinery company, incorporated in 1979. ARL is pioneer in oil refining operations since 1922. The total capacity is 42,000 barrel per day. They have the capability of producing energy and non-energy products. Attock producing range of products, such as LPG, naphta, kerosene oil, HSD, LDO (light diesel oil), motor gasoline, furnace oil e.t.c,

Attock refinery is efficiently utilizing their capacity; improvement in the year 2012 is from 97.2 percent capacity utilization to 99.5 percent capacity utilization, which is 14,665 million barrels produced in the current year. Also their revenue increased by 33 percent in the year 2012, but prices are set by government so their profitability is set on these terms. However the rupee depreciation brings a loss ofRupees 990 millions in the year 2012 as compared to Rupees 44 million the year of 2011. The company also knotted in the circular debt of PSO and electricity supplies, which rises to Rupees 42 Billions.

Attock refinery limited are now involves in upgrading and expansion plan for their refineries, they tend to increase their capacities. They plan to upgrade their refinery situation in northern side of Pakistan in next 2 years. They will add two new units for gasoline, to enhance their capability to deal with national supplies. This type of change will bring their capacity to be enhanced from 45,000 barrel per day to 55,000 barrel per day. Hence prices are fixed by government; they cannot provide economical advantage to the citizens by low price or creating a large profit by high price.

Attock is well aware of environmental issues, to deal with that they are involved in many activities such as installation of solar panels for their different production purposes such as distillation and warming water temperature. Moreover ARL is focusing on recycling, for this they processing the used water and reuse them, by reusing water they saves one of the scarce resource. Previously Attock was involved in using polythene bags that can harm environment, later on they changed it to paper bags.

ARL also provide drinkable water for the villages of vicinity. ARL facilitate society by providing hospital, school, deaf & dumb school and also building mosque for the people of nearby. ARL sponsor various sport events, to create a healthy activities in the society.

ARL deeply involves in spreading education and career building. They offer merit scholarship, internship, training programs, study projects and apprenticeship. They also provide merit scholarships to the children of their employees.

Shell Pakistan

Shell is one of the biggest global groups that deal in energy and petroleum products. They are present in more than 70 countries. Shell has more than 30 refinery plants over the world. They have a presence in Pakistan for more than a century; they have around 750 retail stations.

Shell focuses on key areas that can enhance their capabilities and provide environmental friendly products. They enhance potential of natural gas. Shell is highly emphasis on carbon reduction projects such as low-carbon biofuels, they have introduced new technologies for clean environment, and they capture and store carbon the process is named as carbon capture and storage (CSS). To create efficiency Shell is always trying to adopt lean processes for their operations.

Shell emphasis on fuel efficient products, also they promote message for being economical to their consumer by giving efficient driving tips. Oil spill is very harmful for the environment, that directly effecting employees and communities of locality. Shell has adopt new techniques and procedure to control this kind of spills and reduce it. They controlled over oil spills from tanker and create standards that reducing the incident of large spills, they using double hulls ocean vessel. Shell trying to adopt technology that can provide society a clean air and environment. They always update their technologies; their main focus is on resisting carbon emissions, for this they using technology for capturing Sulfur dioxide. They efficiently utilizing the resources and using technologies that help them to avoid waste. In areas where water is scarce they are not using fresh water for production purpose e.g., pearl GTL plant in Qatar.

Shell is the biggest bio fuel producer for transport vehicles that produced from bio plants, which creates them sustainability follower. They produced bio diesel that is reduced CO2 by 70% made from Brazilian sugar cans.

Hydrogen is widely used for transportation, its CO2 depend upon on its development process. Hydrogen is mainly produced through non-renewable energy (fossil fuels), thus for renewable energy shell is involving into the research.

Shell is involved in many CSR activities to empower people and they help the local communities for that. They hired employees from local region to support their families. Shell is also investing in social programs such as Health and Safety programs, HIV AID, Education and skills development programs and enterprise development programs for being a part of the community.

Shell promotes certain education programs with integration of TCF (The Citizen Foundation). Shell and TCF is a program that empowering education by making it common for everyone. Shell provides endowment fund for education which is known as fueling education. In TCF Rahbar program, Shell provides mentoring to the students of TCF and support education. Shell invested in programs for schools that are affected by flood and earthquake. Also they educate 50 students on each TCF campus around Pakistan; they also provide scholarship to truck drivers employed by Shell. Shell also supports higher education in a field of engineering and business studies; they provide scholarship to create a bright future of bright students.

Social Investment project of Shell focused on several areas such as health, education and community development programs that involved in building infrastructure of roads, lighting, safety sign on roads and beautification.

Shell tamer Pakistan is the project that empowers and encourage youth to starting their own business and creating an entrepreneurial culture that makes people to create a career on their desired path.

Pakistan State Oil (PSO)

Pakistan state oil is operating since 35 years and driving the country’s economic wheel as the first public company. PSO has a huge marketing and distribution network and working on various products like Motor Gasoline (Mogas), High Speed Diesel (HSD), Petrochemicals, Furnace Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG and Lubricants. PSO is integrating and attaining self-efficacy by generating new products to fulfill country demand.

Pakistan State Oil believes in corporate social responsibility as a key to success. The core values of PSO i.e. Respect, Integrity, Innovation and corporate responsibility shows importance of sustainability.PSO is working on other energy fuel as an alternative in today’s scenario to fulfill the need of customers. It has been working on the distribution network of LPG Auto gas station by providing alternative fuel.In order to optimize all possible resources of country PSO started working on the Production of bio diesel fuel from plant. The Pilot project was done of Pippling Marshal Yard at Karachi where Jhathropa plant was grown at barren land. The initial project was successful and PSO is trying to have an agreement with Baluchistan government for 30 years at 5000 acres of land near Lasbella.PSO is also working on the import of furnace oil and gasoline oil to meet the country needs. PortQasim and KPT both are importing Furnace oil and gasoline where handling capacity is poor.To utilize the capacity of handling the liquid cargo at KPT there is an MOU signed between PSO and KPT of Techno Financial Feasibility study between PAPCO and Kemari (Oil jetties). This will improve the infrastructure and optimize the possible resources.In the past PSO has introduced Green-XL diesel that reduce the black smoke drastically and less pollute environment.Moreover PSO is the first Oil Marketing Company which has introduced E-10 ethanol blended environment friendly fuel.PSO is constantly working on the improvement of quality of the lubricants that significantly impact environment and through which the harmful emission can be reduce.

For health and safety PSO has a separate HSE department which regularly observes and issue alerts via E-mail which aware employees regarding health, safety and environment.

PSO provide various initiatives to support educational programs. They award Gold medals, cash awards and scholarships for the top students in leading universities. PSO also assist in building schools in the earthquake affected areas. While with the cooperation of The Citizen Foundation 5 more schools are in Pipeline. PSO for social welfare has various signs and traffic signals installed by PSO as a part of public service program.

PSO provides financial assistance to Cardio Vascular Institute Karachi. It also provides annual donation to Marie Adelaide Leprosy center, Gawader which caters the people of Gawader,Pasni and Ormara.It aided Chippa Welfare Association for fully equipped ambulances and to increase the fleet of ambulance. Furthermore working with Dowites operation theater society for the construction of well-equipped Operation Theater Complex at civil hospital Karachi

For the women empowerment PSO is working in collaboration with Rashid Memorial welfare association and NGO’s for special children welfare, also funding various trust in Quetta like Munir Arshad Memorial. In 2007 PSO actively participated in relief activities of earth quake affected areas by providing food, water and other kitchen utensils. Nevertheless the PSO staff was also involved with Pak army to help victims.

PSO has inaugurated the first street program under which PSO develop two streets in each province. This project includes the improvement drainage lines, street lights, pedestrian walkways, water pipelines, and green plantation.

For PSO sustainability is the biggest interest and all the stakeholders are involved in it.Energyauditsare used as energy saving technique in production process.PSO following ISO9001 and ISO14001 standards & have agreement with OGRA, EPA and other concerned organization for environment protection.


Chevron was established in 1879 at Pico Canyon. Chevron is one the world’s top companies which are operating all over the world. Chevron focuses on the continuous improvement, its responsibilities, innovative ideas and technologies and grows its profits by working on new opportunities appear in the market. Chevron has three brands i.e. Chevron®, Texaco® and Caltex®. The company can produce crude oil more than 1.9 million barrels per day. Chevron has six refineries for Pacific Basin countries-Singapore, Thailand, South Korea, and Richmond and El Segundo, California. These refineries can process more than 70% of the crude oil.

Chevron is working on the exploration of oil and natural gas. Chevron is utilizing the optimum resources to help the world in resolving the energy issues. The major business of the company is exploration and production of oil and gas. Americas Products organization is served by Chevron and Texaco brands and International products organization is served by Caltex. Chevron is the leader in Lubricant market. Chevron’s Lubricants business is catering the industrial, marine, commercial and retail customer with their finished and unfinished lubricants and premium based oils also.

Moreover, there are some other businesses of the company. Chevron Pipe Line Company, this company transports crude oil, CO2, natural liquid gas, natural gas, petrochemicals and refined products all over United States and gives storage facilities also. Another is Chevron Shipping Company; this company does the fleet management for the transportation of company’s products. Chevron Mining Incorporation; produces coal and molybdenum. Chevron’s Global Power Company; producing and catering power projects in United States and Asia. Chevron Phillips Chemical Company LLC, a joint venture, produces petrochemical. Finally, Chevron Oronite, a subsidiary, produces lubricants additives and fuels.

Chevron is contributing a lot on the sustainability factor globally. It is concerned about society’s safety and health; it is working for the environment, corporate responsibilities and much more.

Chevron recognizes the necessity of contributing to the welfare of the society economically. Chevron has invested in small and medium sized enterprises to make them stable in order to contribute in economic development. Chevron created a plate form for the small companies and give new opportunities to grow more, earn more profits and set higher standards of living.

Chevron is working for the well-being of the society and trying to develop those areas where they are operating to improve the standard of living of their employees. Chevron has invested up to $1 billion since 2006 for the society development. Chevron has links with government and non-government organizations and different Aid agencies to find out the areas they have to invest for the development. Chevron is also concerned about the health and treatment of employees and the people who live nearby the company. Moreover, Chevron is investing in the educational sector. The company is focusing on the Science, Technology, Electronic and Math (STEM). Chevron wants the society to be more established so that they can support their families and raise the living standards of the communities. Chevron is working on developing the backward areas by focusing on the basic need of the society.

Chevron is also focusing on the environmental sector. Chevron is concerned about the reducing wastage of resources and using energy in most appropriate manner. It is also concerned about the safety and cleanliness of the environment. The company is reducing wastages, pollution and every other aspect which have negative impact on the environment. Chevron is working on three basic factors protecting the environment, respecting the biodiversity and conserving fresh water resources. Chevron has Operational Excellence Management System is framework used to manage the health, environmental, reliability, social, safety, and efficiency.

Environmental, Social and Health Impact Assessment (ESHIA) process is used to forecast and plan strategically to avoid the factors having negative impacts on the environment. Chevron is concerned about the biodiversity factors and it supports the ecosystem and species by ecological processes. Chevron tries its level best to support the environment in all possible manners. Chevron recognizes the need of fresh water all over the world so it has enhanced the fresh water processes by developing fresh water management.

When it comes to the safety, Chevron is working to make the company a zero incidents company. It is focusing on the safety but still it is not incident free yet. Chevron has operational excellence standards to follow as their best practices. Chevron is focusing on the safety and making their system risk free. Ensure that each stakeholder of the company is doing right thing at the right time. By reducing risk, Chevron is able to manage billions of dollars which leads them to invest in generating more energy, create jobs, tax revenue and support small and medium enterprises and contribute to raise the standards of living of the locals.

British Petroleum

British Petroleum (BP) is one the leading oil and gas companies; it ranks third in United Kingdom and fourth-largest in the world. It is a vertically integrated company that deals in explorations and production, refining, distribution and marketing. British Petroleum has invested in renewable energy such as wind power and biofuel.

Sustainability has an important part of BP’s core values in the form of safety, respect of laws and regulation. BP believes that sustainability has a great impact of business, people, society and environment.

Internationally BP is trying to innovative new technique to curtail the consumption by providing more efficient energy through diverse mix of techniques that can generate other portfolio of products such as Oil Sands, Shale gas, deep water oil, gas production, biofuels and wind. Moreover the use of oil and natural gas and investment in Bio fuel can play an important role in fulfilling future needs.

British petroleum conduct in-depth investigation of operational problems like deep water oil spill 2010 and Texas City refinery explosion 2005, operational audit, annual risk interviews, and other incident occurrence investigation. They also intensely fallow the industry practices that can be used as an effective tool and to avoid these problems in future. Not only this, BP has settled operations academy (where Board of directors and senior management addresses the operation front staff), operations essentials and operations management departments where employees are trained for how to work in field. The most recent started activity in operational safety is Exemplar which is a field training program that reduces the process safety risk.

InDownstream business BP is also working on the safe management, storing and processing of Hydrocarbons which has certain associated operational risks. BP curiously measures hydrocarbon by using well designed operation equipment because it has the possibility of ignition. In addition BP works on safer ways, emergency procedures and mitigation techniques for fire or explosion.However for preventive action BP is also working with various associations such as The International Association of Oil Gas Producers ‘Well Expert Committee, Subsea Well response project and Oil Spill Prevention and response Advisory Group. These organizations provide technology and consultancy that can guide companies to avoid operational issues.

BP has itself is also worked on safeguarding technology that is result of its different innovation which was conducted in response of Deep-water spill accident on well capping and containment work. Having operation more than 80 countries BP is maintaining HSSE (Health Safety Security Environment). For BP the key environmental issues are greenhouse gas emission, waste and water and energy use. BP is working for support development program in many countries by supporting Small Medium Enterprise (SME’s) such as agri business and tourism. In few countries BP helps banks to provide loans and micro financing for small entrepreneurs. In Egypt and western Nile Delta Community health program was also run by BP, it follows UN guidelines principles on business and human rights

In Pakistan BP is also focusing on Sustainability. Even all stakeholders are involved in the sustainability practices of organization. BP is not designing product for reuse, recycle and recovery but optimizing all its regional level BP has a believe that government should give a stable exploring right to private companies in Pakistan so, that Company can meet the increasing demand by using its advanced technology. BP is meeting international standard and certification. In social sector BP is also contributing for social development by providing money in NGO’s. BP Employees are assets and at national level company is taking various safety measures to make work environment safer and healthy.


There are various issues in Pakistan’s petroleum downstream sector that are discouraging sustainability development. A sustainability shows that organization are concern about others, yet many organization prefer their self-interest and short term benefit, so they do not invest in sustainability development as it brings long term benefit. As world is emerging andsustainability becoming a common agenda for every organization, the awareness for sustainability in Pakistan is now increasing but there are many forces that are acting as a barrier.

Environment parameter not properly defined:

There is a big concern on environmental issues in petroleum sector, as history shows some incident in this sector caused a big disaster such as TASMAN SPIRIT TANKER that was carrying oil for PRL etc. In addition over utilizing scarce resources and harming the environment is another issue. Oil refinery effects water, air and land. Therefore creating awareness and initiate preventive steps is the first step of towardsenvironmental protection. The companies are less concern about preventing environmental issues; rather they react to the environmental hazard after it occurs. Pakistani companies should properly define and design a standard of procedure that is not only just of vigilant toward environmental issues, but can also deal with it in an efficient manner. For example transportation safety that having petroleum products, refinery processes, liquid spills, gas emissions and carbon foot print.


Pakistan is a country full of resources, but problem is always the lack of technology. To optimize those resources Pakistan must have to invest in technology to make these resources available. In addition refinery sector of Pakistan facing a problem of capacity utilization. The underutilization of resources is due to production processes, efficient production process and quality standards can optimize the utilization of resources. Internationally the advance technology of Euro VI will soon be implemented in 2014, but in Pakistan Euro I and EURO II are being used.

Circular Debt

Circular debt is the one of the biggest issue in current downstream petroleum sector. The debt is now rose up toRupees. 872 billion. This is also effecting the economy growth and organizations growth.In the year 2005 this circular debt is around Rupees. 84 billion, and now it increases with the time. The circular debt effectmany organization to investment in their future plans for growth.

Capital Investment

Organizations are reluctant to further investing due to their fixed profit margin, most of the refineries are old and becoming a reason of harming the environment. Refinery up-gradation is also a way for capability building but still that required a capital investment.

Lack of Government support

Asia is a world’s biggest refinery region, where capacity is more than 27 million barrel per day. In all Asian countries Government is supporting their region by offering subsidy that makes refinery to saving their money for further investment, here there is fixed margin causes organization to think backward. Also the circular debt effect organization negatively.

Consistency in Polices

Downstream petroleum sector is having a close involvement of government and regulations. As the policies for petroleum are amended frequently, that makes inconsistency policies. Inconsistent policies result inconsistent practices such is fixed margin and price, subsidy, import procedures and duties.

Adopting Sustainability Reporting Standard

Organization are current adopting their own pattern of reporting sustainability in Pakistan. Most of them are reporting their sustainability through their annual reports. Very few companies are believing in follow a global standard for reporting sustainability. Without set standards organization can overstate their sustainability practices that just for creating a goodwill and incorporating CSR. Most of the organization are not following sustainability practices completely. In global reporting standards like GRI, organization can fulfill all the necessary practices that sustainability demands.

Monitoring and Regulatory

Internationally a lot of different NGOs monitor, evaluate and share expertise with companies in order to improve and create a check on these companies sustainability active and efforts. Unfortunately Pakistan does not have this liberty. In Pakistan there are not many NGO or they are not that active.

Depreciation of Rupees

Pakistan is importing refined products that are worth of more than USD 33 billion, the depreciation of rupee against dollar makes it more expensive to import. The international trade becoming more expensive for the organizations.


Therefore Companies believe that sustainability in Petroleum downstream sectors is very essential, yet the definitions of sustainability and parameters or standards to measure it are different in each company. Most companies use their annual reports for sustainability reporting. Further on analysis the best practices of local Refineries and OMC with International companies like SHELL and BRITISH PETROLEUM, it was found that Social aspect of sustainability was well covered by local companies. There is not much gap between international and local practices; all PARCO, BYCO, ATTOCK, SHELL PK, PSO and CHEVRON are performing exceptionally on social welfare, these companies frequently provide medical assistance, education, and serve commendably in any Nature Calamite.

In Pakistan the Environmental aspect of sustainability is a bit less focused on, which makes local companies far behind in contrast of international companies. They are producing EURO IV and EURO V products which are more environmentally friendly. In addition they are developing alternate fuel; Bio Diesel, and Natural Gas etc. which are more environmental friendly, they have more efficient procedure to curtail the CO2 emissions. However in Pakistan companies are using EURO II technology that produces more CO2 compare to EURO IV & V, local companies are more bounded towards waste disposal and preservation of nature.

Whereas, the economical aspect Pakistan companies are financingSmall and Medium sized enterprises, secondly they are trying to raise the standard of living by facilitating to local business, share business practice and developing talent. The major issues faced by Pakistan are Lack of technology, Pakistan has resources but yet it lack technology and Government support in utilizing it.Government fixed the prices of these companies through which no one can gain competitive advantage, they cannot reduce their price to transfer benefit to the customer or creating profit to invest in capability building. If Government subsidies on petroleum sector then these companies can enhance their production capabilities or they provide relief through the price. The Government has also failed to implement the standard that was set byNEQS. The circular debt is one of the biggest problem that faced by downstream petroleum sector which is pulling back the organizations for further investment, the debt is inclined by Rs.872 billion.


Sustainability can play a key role in extended organization’s life, it is also anaction plan of building a nation. Our recommendation on the current scenario of Pakistan, is to implementing a global standard such as GRI. By following a global standard like GRI, organization can report key sustainability rolesi.e.,environmental, social and economic. By following global standard organization can monitor its self and invest in fair deal.

Petroleum sector involved in harming environment through carbon foot print, co2 gas emission, waste, overutilization of scarce resources etc. To deal with this kind of common practices, organization must have to implement standards. There is no such mechanism that calculates Co2 gas emissions and other harmful practices. Organizations must invest in recycling and reusing of resources such as water. Organization should set a standard for their carriers to avoid liquid spills.Creating euro 3, 4, 5technology can reduce a problem of harming environment.

Technology is also a major problem in Pakistan. In refinery, technology is also responsible for underutilization of the resources. Technology can be purchased from outside region, which require a huge capital investment. Technology can also be developed within the nation rather than buying it from other place. Education can create technology, as Pakistan is facing a problem of brain drains. But still Pakistan have many young talents, brain drain can be stop by controlling factors such as opportunities in job and further education, political instability and terrorism situations.

Inclined of dollar is due to various reasons, that’s a financial side but it can be prevented in many ways especially by the help of Government. Refinery up-gradation can reduce the import of refined products, Government and organization must invest in enhancement of refinery product’s capability so that they will not effected by dollar hype.


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