Minority stakes sell: PM directs Petroleum, Finance divisions to prepare plan

ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Petroleum Division and Finance Division to prepare a comprehensive plan to sell minority stakes, with management control of oil and gas sector, SoEs to a Gulf Cooperation Council (GCC) based strategic investor, sources close to Petroleum minister told Business Recorder.

While presiding over a meeting on June 25, the prime minister also directed the Petroleum Division to present the strategy at the relevant forum for deliberations.

The Petroleum Division has also been directed to transform the sectoral strategy presented by the minister Petroleum and secretary Petroleum in presentations into a matrix containing deliverables, timelines and responsibilities/ dependencies. This shall also include mineral sector interventions.

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The prime minister also asked the Petroleum Division to prepare and finalize a policy framework for Thar coal gasification leveraging China’s experience and best practices. For this purpose, Petroleum Division has been given one month’s time.

The Ministry of Foreign Affairs, Board of Investment and Petroleum Division will arrange interaction of E&P companies with the prime minister. This will be followed by the Petroleum Conference to be attended by industry leaders with clearly defined objective of attracting maximum investment in the sector in order to reduce reliance on expensive imports.

The Finance Division, State Bank of Pakistan, Petroleum Division and Power Division have been tasked to engage with financial institutions to review and revise their current policy of not financing coal projects, the sources continued.

Pakistan Railways, Petroleum Division, PD&SI Division and Government of Sindh have been directed to expedite all required approvals for Thar coal connectivity including its financing model. Railway to ensure that project is commenced and completed before the expected date of availability of additional Thar coal for replacing imported coal.

A separate presentation on Railway line for transportation of Thar coal shall be made to the Prime Minister. A meeting to he held to review and fast track and complete till December 31, 2024 the installation of 5,586 meters on Town Border Stations (TBSs) to curtail Unaccounted For Gas (UFG) losses. Separate presentations by gas utilities will be scheduled.

The committee headed by the Petroleum minister, has been given two-week time, starting from June 25, 2024 to finalize and submit its recommendations on implementation of WACOG without any further delay.

The Petroleum Division will also firm up a concrete plan with deliverables and timelines to liberalize/deregulate oil and gas sector, including but not limited to, reconceiving marketplace for POL products, gas, LPG and LNG, privatising publicly traded companies and, developing wholesale market.

The Petroleum Division shall also collate and examine data shared by the Power Division regarding captive power plants and furnish a plan to move captive to national grid with deliverables and timelines within a month.

Copyright Business Recorder, 2024