Deputy Prime Minister Muhammad Ishaq Dar chaired a meeting focused on addressing the challenges facing Exploration and Production (E&P) companies. He reaffirmed the government’s commitment to ensuring energy security and promoting economic growth, while introducing new measures to attract both local and foreign investment in the sector.
This meeting, the inaugural session of a newly established committee dedicated to resolving petroleum sector issues, included key figures such as the Ministers of Petroleum, Finance, Revenue, and Energy, alongside representatives from both the public and private sectors.
Ishaq Dar highlighted the petroleum sector’s vital role in national energy security and economic development. He promised to implement comprehensive measures to create a more favorable investment environment.
He acknowledged concerns raised by local and international E&P companies, especially regarding the sector’s security and financial stability, which have been compromised by escalating circular debt issues.
During the discussions, private sector representatives expressed concerns about the sustainability of the downstream gas sector and called for increased openness to private companies to enhance its viability.
In response, Dar directed the Petroleum Division to collaborate closely with industry stakeholders to address these challenges, including resolving revolving credit issues that have posed significant obstacles.
One of the key outcomes was a directive for the Petroleum Division to draft proposals to amend the OGRA Ordinance, including introducing a mechanism for monthly or quarterly adjustments in gas rates. This measure is seen as crucial for the sector’s financial health and maintaining investor confidence.
Security concerns were also addressed, with instructions for the Interior Division to work with E&P companies to tackle security issues, particularly in challenging operational areas. A single-window facility at both federal and provincial levels was also ordered to streamline security processes and facilitate smoother operations.
The meeting underscored the need to implement recent amendments to the Petroleum Policy of 2012, with guidelines issued to develop a framework for their execution. This framework is expected to enhance exploration of new oil and gas reserves and further boost the sector’s potential.
