- Petroleum and Finance Divisions to prepare plan
- Strategy aims to attract GCC-based strategic investors
- Focus on sectoral transformation, Thar coal gasification, and financial engagement
ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Petroleum Division and Finance Division to prepare a comprehensive plan to sell minority stakes, including management control, in state-owned enterprises (SoEs) within the oil and gas sector to a Gulf Cooperation Council (GCC)-based strategic investor, according to sources close to the Petroleum Minister.
In a meeting on June 25, the prime minister also instructed the Petroleum Division to present the strategy at the relevant forum for deliberations. The sectoral strategy, as outlined by the Petroleum Minister and Secretary Petroleum, will be transformed into a matrix with clear deliverables, timelines, and responsibilities, including interventions in the mineral sector.
Additionally, PM Sharif tasked the Petroleum Division with developing and finalizing a policy framework for Thar coal gasification, leveraging China’s expertise and best practices, with a deadline of one month.
The Ministry of Foreign Affairs, Board of Investment, and Petroleum Division will facilitate interactions between exploration and production (E&P) companies and the prime minister. This will culminate in a Petroleum Conference aimed at attracting significant investment to reduce reliance on expensive imports.
The Finance Division, State Bank of Pakistan, Petroleum Division, and Power Division are to engage with financial institutions to review and potentially revise their current policy on coal project financing.
Efforts to expedite approvals for Thar coal connectivity, including its financing model, have also been prioritized. The Pakistan Railways, Petroleum Division, Planning, Development & Special Initiatives (PD&SI) Division, and Government of Sindh will ensure the project commences and completes before the additional Thar coal is available to replace imported coal. A separate presentation on the railway line for Thar coal transportation will be made to the prime minister.
A meeting will be held to review and expedite the installation of 5,586 meters on Town Border Stations (TBSs) to curtail Unaccounted For Gas (UFG) losses by December 31, 2024, with separate presentations from gas utilities.
A committee headed by the Petroleum Minister has two weeks, starting from June 25, to finalize recommendations on implementing the Weighted Average Cost of Gas (WACOG) without delay.
The Petroleum Division will also develop a concrete plan with specific deliverables and timelines to liberalize and deregulate the oil and gas sector. This includes reimagining the marketplace for petroleum products, gas, LPG, and LNG, privatizing publicly traded companies, and developing a wholesale market.
Additionally, the Petroleum Division will analyze data from the Power Division regarding captive power plants and provide a plan to integrate these plants into the national grid within a month.
Story by Mushtaq Ghumman
