KARACHI, March 22: Shell Pakistan Limited (SPL) has decided to offload its permanent and confirmed management staff as a part of its on-going review of business in Pakistan.

As a result of this, a voluntary separation scheme (VSS) has been introduced earlier this month for a limited period. In response to the scheme, the SPL has received a total of 45 applications out of which 39 have been accepted.

“The scheme is designed to restructure its operations to be more efficient and effective and in line with best practices around the world,” a spokesman of the company told Dawn on Friday.

It could not be known immediately as to how much manpower is targeted to be removed under the VSS and what cost will be incurred by the company.

To a query that the introduction of VSS seems surprising when the government has recently raised the margins of oil marketing companies (OMCs), including Shell, which would definitely increase their profits by 40-50 per cent in years to come, the spokesman said the scheme was introduced ahead of OMCs margin increase.

The total staff strength will now be 565 after acceptance of 39 applications. In November 1998, the company had offloaded around 100 employees under the same scheme in view of bleak outlook for 1999 followed by delay in increase of OMCs margin since 1995.

On other issues, the spokesman said the company was committed to its operations in Pakistan and looked forward to continued growth and investments in the future.

The company in its half yearly report ending December 31, 2001, termed the six months period as a difficult, hoping for better times ahead. Shell’s sales volume in July-December 2001 rose by six per cent to 1.90 million tons as compared to 1.80 million tons in the same period of 2000, while gross profit reduced by one per cent followed by reduction in profit after tax by 62 per cent to Rs186 million from Rs485 million in July-December 2000. Earnings per share reduced by 62 per cent.

On the other hand, around 750 employees of Pakistan State Oil (PSO) had opted the VSS last year, costing Rs408 million to the company as part of its restructuring plan.