Make no mistake, Pakistan is a land of opportunity. With a population full of zestful entrepreneurial spirit, the land of the pure continues to attract investors that had been challenged to shy away for fears of purported physical and financial security. Things hadn’t been painted rosy courtesy of a few decisions by MNCs that basically went into restructuring based on their long-term investment plans. However, that hasn’t stopped the bold and the brave to step and grab hold of the opportunities. And the latest is Aramco, a Saudi oil giant with a 90-year history of meeting the energy needs of billions
Make no mistake, Pakistan is a land of opportunity. With a population full of zestful entrepreneurial spirit, the land of the pure continues to attract investors that had been challenged to shy away for fears of purported physical and financial security. Things hadn’t been painted rosy courtesy of a few decisions by MNCs that basically went into restructuring based on their long-term investment plans. However, that hasn’t stopped the bold and the brave to step and grab hold of the opportunities. And the latest is Aramco, a Saudi oil giant with a 90-year history of meeting the energy needs of billions
Renowned for capitalizing on opportunities and achieving significant milestones, Aramco is a key player among the top 20 global integrated oil companies, with an impressive market capitalization of USD 2 trillion, surpassing industry counterparts. Its dominance is evident in the ownership and operation of the largest onshore and offshore oil fields, as well as holding the world's second-largest proven crude oil reserves, exceeding 270 billion barrels, all located within the Kingdom of Saudi Arabia. Going public in 2019, it secured the second-largest position among global public companies in the 2023 Forbes Global 2000 rankings.
As part of the Company’s international investment strategy, it has actively pursued opportunities in Pakistan, a market perceived as underutilized. While other global players opt out of the evolving business landscape, the Company strategically entered the realm of retail oil business in Pakistan. In mid-December, amid speculation of an incoming investor, an agreement was reached with Gas & Oil Pakistan (or GO) for a 40% investment. To market observers, this move seemed a natural discourse, especially considering GO's status as a privately owned family business.
The successful agreement is a triumphant result for the hardworking Board of GO, specifically its visionary CEO, Mr. Khalid Riaz. Scion of a well-known business family, Mr. Riaz, honed his business acumen from an early age and soon emerged from his father’s shadows (the late Chaudhry Riaz Ahmed) to lead what is arguably the market leader in downstream oil business in the country.
GO’s humble beginnings date back to 1967 when (late) Chaudhry Riaz Ahmed entered into the fuel retail business with sales in remote communities of Punjab. It was on the back of this unassuming entrepreneurial legacy that Khalid Riaz restructured the family business into a corporate entity, establishing the first retail outlet in 1981. Thereon the sky was the limit and in 1998, he started his logistics services, which eventually became a big logistics network providing services to major Oil Marketing Companies (OMCs) in Pakistan. Mr. Riaz’s vision to have a reliable Pakistani company fully cater to the needs and wants of the local market, continued to bear fruit that has eventually led to foreign investors recognizing the Company’s ability to further its growth in Pakistan’s ever-expanding market. But before that, in order to ensure successful implementation of his vision, he embarked on an ambitious growth of the Company by putting in place a top-notch professional team.
Mr. Khalid Riaz aspired to transform GO into a true multinational company. After laying the foundation, he reached out to the industry's finest, Mr. Tariq Kirmani, to entrust him with the crucial task of realizing this vision.
With more than 50 years of multifaceted experience in the corporate sector, both domestic and international, Mr. Kirmani carries with him a rich history of having served the oil sector, first with Caltex (later Chevron) in the US, then for Pakistan State Oil which he managed as Managing Director & CEO. In 2005 the government appointed him as Chairman & CEO of Pakistan International Airlines (PIA). It was due to his personal efforts that PSO and PIA became members of the World Economic Forum, Davos, Switzerland and the World Business Council for Sustainable Development, Geneva, Switzerland. Currently, he is also serving as the Chairman of Pakistan Refinery Limited (PRL) as well as being the Director on the Boards of Professional Education Foundation (PEF), IBA Selection Board and National Academy of Performing Arts (NAPA).
At GO, Mr. Kirmani set about creating the corporate culture needed for the blossoming company. His leadership skills were put to use when he assembled a professional Board of Directors, in line with Mr. Raiz’s vision. Here they are ably supported by Chief Operating Officer, Mr. Zeeshan Tayyeb and members of the Board that include professionals of the industry including Haque Nawaz, Malahat Awan, Lt. Gen. Munir Hafiez (Retd.), Naved A. Khan and Razi-ur-Rahman Khan. Bilal A. Ansari and Shehzad Mubeen are the minority shareholders on the board.
Together, with the help of Mr. Riaz’s vision and Mr. Kirmani’s leadership, GO has transformed into a force to reckon with, an organization that professionals profess to be part of. Instrumental here is also Mr. Zeeshan Tayyeb, the Company’s dynamic COO who leads from the front in the areas of strategic planning and shaping of the company’s future outlook.
With more than 1200 retail outlets, more company operated outlets than any other OMC in the country and a network of oil storage depots and terminals across the country that can hold approx. 200,000 MTs of fuel, GO suits Aramco’s needs as it is looking for a trusted partner that can hold the shelf for its recently procured lubricant business, Valvoline. The planned acquisition is Aramco’s first entry into the Pakistani fuels retail market, advancing the Company’s strategy to strengthen its downstream value chain internationally. Voicing his confidence in the Pakistani market, Mr. Mohammed Y. Al Qahtani, President, Aramco’s Downstream business, said: “GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.”
According to media reports, experts are united about Aramco’s entry into Pakistan. One of them, Dr. Khaqan Hassan Najeeb, former advisor to the Finance Ministry has already gone on record saying, “Certainly, heartening to see Aramco world’s leading integrated energy and chemicals company’s take investment stake in Pakistan. This is especially encouraging for Pakistan as it is Aramco’s 1st entry into the Pakistani petroleum retail market.” He added that the potential makes good business sense for Aramco’s launch strategy in Pakistan. The investment has indeed sent a strong signal to local and international investors about the economic potential of Pakistan. At the same time, it has helped to shine a bright light at the untapped private sector of the country that feels ignored.
Other than being Aramco’s 1st foray into the Pakistani fuels market, it is also the heralding of a new era of investment in the country. However, in light of the departure of foreign investors from the country over a period of time, it is imperative for the government to recognize the necessity of reassessing and reviewing its policies to ensure the sustained presence of foreign investors in the country. Creating a conducive environment that offers the requisite assurance to foreign investors is crucial for fostering long-term commitments and encouraging them to persist in their investment endeavors.
The writer is a communications professional
