Pakistan Petroleum Limited (PPL) is relocating more than 500 employees from Karachi to Islamabad as the state-owned oil and gas company shifts its head office after more than 70 years in Karachi, RBN has learnt.

The relocation has raised questions among employees about the need for the move, particularly as a significant part of PPL’s operations and assets are located in Sindh and Balochistan.

PPL, as a corporate entity, has the authority to decide the location of its head office and reorganize its operations based on business requirements.

Employees Raise Concerns

Sources said employees were not consulted before the relocation decision and some are considering resigning because moving their families to Islamabad could create significant financial and personal difficulties.

Employees are particularly concerned about their children’s education, healthcare, family responsibilities and other personal commitments.

Sources also alleged that employees were warned of possible legal action if they resign.

The announcement has reportedly affected normal work at the company, with employees facing uncertainty over their future arrangements.

Relocation Cost

Sources estimated that relocating more than 500 employees and their families could cost between Rs. 600 million and Rs. 1 billion.

A relocation package for an employee with a family of four could cost around Rs. 1 million, covering expenses such as travel, temporary accommodation and transportation of household belongings, according to sources.

The relocation of office records, vehicles, warehouse material and other assets could add another Rs. 100 million.

Why Is PPL Moving?

The move could give PPL closer access to federal ministries, regulators, policymakers, investors and other government institutions based in Islamabad.

However, the financial and operational benefits of the relocation are not yet clear, particularly in relation to the estimated cost.

PPL has major operations in Sindh and Balochistan, where much of its oil and gas production and related assets are located. This has raised questions about the operational rationale for moving the company’s central administration to Islamabad.

RBN contacted PPL seeking details about the reasons for the relocation, its expected benefits, estimated cost and arrangements for employees being moved.

The company’s response will be added once received.