Pakistan State Oil to expand into renewable energy

Pakistan State Oil (PSO), the nation’s largest fuel provider, is preparing to expand into renewable energy and other emerging areas within the energy sector, according to Petroleum Minister Ali Pervaiz Malik. The announcement came during his high-level visit to PSO’s headquarters in Karachi on Thursday.

This initiative represents a strategic pivot within Pakistan’s state-owned energy landscape, aiming to modernize infrastructure, cut emissions, and align with global sustainability trends.

Malik’s visit is part of a wider government effort to engage key industry players amid ongoing reforms to diversify Pakistan’s energy mix away from its dependence on fossil fuels and bolster long-term resilience.

“The government is fully committed to guiding the energy sector towards resilience, sustainability, and innovation,” Malik stated during discussions with PSO executives and board members. He emphasized the importance of improving fuel quality, lowering emissions, and accelerating the transition to clean energy.

PSO’s senior management provided the minister with an overview of the company’s current performance, supply chain reliability, and progress on automation. They also shared plans to upgrade infrastructure and pursue renewable energy initiatives, although no specific projects were disclosed.

Malik commended PSO for ensuring a consistent fuel supply across the country and assured the company of the government’s support in overcoming operational hurdles. He stressed that aligning policy and fostering coordination across sectors would be crucial for building a more efficient, consumer-driven energy system.

The minister also held meetings with the Oil Companies Advisory Committee (OCAC) and the Petroleum Dealers Association, addressing regulatory challenges, profit margin concerns, and broader sector reforms. He pledged that these issues would be resolved through structured dialogue.

“All stakeholders must work together with a shared vision for progress,” Malik said. “By doing so, we can create a modern, responsive energy sector that meets the evolving demands of our nation.”

Pakistan continues to grapple with recurring energy challenges—including high fuel import costs, unstable power supply, and delayed infrastructure upgrades. While private and semi-public organizations have begun moving toward renewable energy, PSO’s anticipated entry into the sector signals one of the most significant steps yet by a major state entity.