Page 9 - CMA Journal (Jul-Aug 2026)

E x c lus iv e I nt er v iew

ICMA: In your opinion, how can procurement Ultimately, sustainable procurement is about making
systems integrate sustainability goals—such as environmentally responsible choices that are
reducing carbon footprints and supporting climate commercially viable, measurable, and aligned with
levies—without undermining e ciency or Pakistan’s long-term climate and energy goals.
a ordability? ICMA: Digital transformation often requires
Smarter procurement can help OMCs Nawed Tanwir Abbasi: Sustainability must be cultural change within organizations. What
challenges do you foresee in shifting procurement
and refineries manage fuel price volatility integrated into procurement without compromising mindsets from transactional to strategic, and how
a ordability or operational e ciency. This requires
through better demand forecasting, looking beyond upfront costs to consider lifecycle can OCAC guide this transition?
inventory planning, diversified sourcing, costs, carbon footprints, and suppliers’ environmental Nawed Tanwir Abbasi: Digital transformation in
performance. Integrating these criteria into vendor
procurement is an opportunity to build on established
and timely purchasing decisions. Digital selection and procurement decisions can deliver practices by integrating increasingly sophisticated
long-term environmental and commercial value.
transformation, AI and better data can Pakistan’s evolving Green Taxonomy, ESG disclosure digital tools into existing systems and decision-making
processes. Bringing multiple data points together in a
make procurement decisions faster and framework, and phased adoption of IFRS S1 and IFRS timely and reliable manner is key, alongside equipping
sta with the skills to use advanced analytics and AI
better informed, while sustainable S2 also provide an opportunity to align procurement e ectively.
with measurable sustainability objectives. Climate
procurement can align commercial levies should likewise translate into tangible, OCAC is supporting the industry and Government by
viability with Pakistan’s long-term climate measurable environmental bene ts. bringing stakeholders together, providing industry
data and analysis, identifying operational and
Across the oil industry, companies are increasingly
and energy goals, strengthening embedding sustainability into operational regulatory bottlenecks, and facilitating dialogue on
supply-chain resilience. decision-making, with teams driving energy issues a ecting the petroleum supply chain. OCAC also
advocates the adoption of AI and digital tools and
conservation, water stewardship, waste valorization,
and biodiversity initiatives. promotes training and capacity-building for industry
professionals. The objective is to use technology, AI
Mr. Nawed Tanwir Abbasi Transforming plastic waste into eco-friendly, usable and better data to make procurement decisions faster,
materials for road infrastructure, construction, and
better informed and more responsive to market
Chairman other applications demonstrates the industry’s conditions.
commitment to circular-economy practices. Progress
Oil Companies Advisory Council (OCAC) in solarization and EV charging infrastructure further ICMA: What role do you see for public-private
re ects e orts to conserve energy and support the partnerships in building smarter procurement
transition to cleaner mobility. systems, and how can OCAC act as a catalyst for
aligning industry priorities with national economic
ICMA: With Pakistan’s daily fuel price adjustments ICMA: The energy sector is highly exposed to Public-private partnerships and employee-led goals?
transmitting volatility into supply chains, what role geopolitical shocks. What procurement strategies environmental and community initiatives are Nawed Tanwir Abbasi: Public-private partnerships
can smarter procurement systems play in should Pakistan adopt to build resilience against becoming integral to corporate sustainability can play an important role where procurement and
stabilizing operations while still re ecting market sudden disruptions in global oil supply routes? strategies, helping reduce operational footprints and supply-chain infrastructure require signi cant
Several
stewardship.
promote
environmental
realities? Nawed Tanwir Abbasi: Pakistan can strengthen companies are also expanding their plantation investment that neither the Government nor individual
energy security through diversi ed oil suppliers and initiatives while promoting community engagement companies can e ciently undertake alone. In the
Nawed Tanwir Abbasi: Smarter procurement can help shipping routes, adequate stocks, and stronger storage petroleum sector, this could include strategic storage,
OMCs and re neries manage fuel price volatility infrastructure. While geopolitical shocks cannot always and youth inclusion. These e orts contribute to port e ciency and pipelines. The Government can
through better demand forecasting, inventory be prevented, timely contingency planning can biodiversity conservation, strengthening climate provide the policy and regulatory framework, while the
resilience, and creating natural carbon sinks.
planning, diversi ed sourcing, and timely purchasing strengthen resilience. private sector can bring investment, operational
decisions. However, procurement e ciency alone The re nery sector’s planned upgradation under the expertise and technology.
cannot o set the challenges of regulated pricing, OMC Regular stress-testing of oil supply chains can help amended Re nery Policy is another important step. As an industry think tank, OCAC can provide data and
margins, rising operating and nancing costs. identify alternative sources, routes, costs and stock These upgrades are expected to enable analysis to help assess the commercial viability of such
requirements ahead of potential disruption. Euro-V-compliant fuel production and an improved initiatives while supporting national objectives such as
A gradual move towards deregulation would provide Strengthening domestic re ning capacity can further product mix, supporting Pakistan’s environmental energy security, import e ciency and uninterrupted
greater exibility to respond to market realities, reduce reliance on nished imported products. objectives and domestic re ning capability. fuel supply. This can help Government and industry
strengthen competition, and support supply-chain The Government’s initiation of the Strategic Petroleum While OMC margins remain a challenge across the jointly identify and implement solutions that serve
resilience. This, alongside continued improvements in Reserve (SPR) feasibility study, with Wood Mackenzie industry, companies continue to pursue solarization, both commercial and national interests.
port e ciency and e orts to curb illicit product appointed in August 2026, is a constructive step. The energy e ciency, greater pipeline utilization, and EV
in ows, would further strengthen supply-chain focus can now be on translating the study into a charging infrastructure. These e orts demonstrate
resilience and support fair competition. practical plan and timely implementation. how the sector continues to foster innovation,
strengthen sustainable business models, and deliver
energy responsibly despite nancial constraints.

ICMA’s Chartered Management Accountant, Jul-Aug 2026 7