Govt taking steps to boost investment in petroleum sector: Deputy PM Dar

Pakistan’s Deputy Prime Minister Ishaq Dar on Sunday said the government was taking steps to increase foreign investment in the country’s petroleum sector by resolving the key issues of the sector, reported 24NewsHD TV channel.

The Deputy PM chaired the first meeting of a committee, formed to consider the issues faced by the petroleum sector’s exploration and production (E&P) companies and to resolve issues of the industrial sector, resolved to take every possible step to provide all facilities to the foreign companies that would help attract further investment in the country.

The committee, chaired by Dar, is tasked with tackling challenges and creating a more conducive environment for foreign investment in Pakistan’s petroleum sector. The meeting focused on a range of topics, including enhancing the financial system for offshore exploration and implementing recent amendments to the Petroleum Policy of 2012.

The meeting also highlighted concerns raised by local and foreign E&P company heads regarding the sector’s security and stability. One major issue identified was the growing circular debt, which has affected the financial health of the sector.

Speaking at the meeting, Deputy Prime Minister Dar emphasized the government’s commitment to resolving key issues and providing necessary facilities to attract further foreign investment. “We are taking every possible step to address the concerns of foreign companies and create an environment that encourages investment in our petroleum sector,” Dar stated.

Dar directed relevant authorities to prioritize the resolution of circular debt in the power sector, recognizing it as a critical step towards stabilizing the overall energy sector.

Furthermore, private sector committee members voiced their concerns about the downstream gas sector, advocating for its opening up to private companies to enhance sustainability and efficiency. In response, the committee directed the Petroleum Division to collaborate closely with industry stakeholders and suggest appropriate amendments to the Ogra Ordinance.

These amendments are expected to introduce a mechanism for adjusting gas rates on a monthly or quarterly basis.

On security issues, the forum instructed the Interior Division to work in close coordination with E&P companies to ensure their operations are safeguarded, particularly in challenging areas. The Interior Division has been tasked with developing a dedicated one-window facility system at both federal and provincial levels to streamline security arrangements and support operational safety.

The meeting was also attended by Minister for Petroleum Musadiq Malik and Minister for Power Awais Ahmed Khan Leghari.

Reporter: Anwer Abass