Ministry of Petroleum has reportedly informed the Economic Co-ordination Committee (ECC) of the Cabinet that Attock Petroleum would update its system for usage of premium motor RON 92 Gasoline in two years.
Sources told Business Recorder that Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi gave a detailed briefing to the ECC on the usage of RON 92 gasoline in Pakistan and stated that it may be slightly expensive as compared to RON 87 but it would have benefits of mileage, engine efficiency, and environment friendly.
The minister further revealed in the meeting that presently RON 87 is being used in the country which is of lower quality while the rest of the world uses RON 92. On Thursday, Ministry of Petroleum put up a proposal to the ECC seeking permission to use RON 92 in the country and the proposal was approved by the ECC.
An official, on condition of anonymity, said that the government is also going to bring a new relending policy to the provinces based on reduced relending rates and risk sharing by the provinces. At present, the government borrows on average at 3.14 percent from external resources through the Economic Affairs Division and re-lends it to provinces at 15 percent primarily to cover risk under the 2009 relending policy. The government has decided to formulate a 2016 relending policy envisaging around 7 percent relending rate to provinces instead of 15 percent but the provinces would be asked to share the risk. Sources stated that under 2009 policy, the federal government was responsible for the entire risk and that was the reason for higher relending rate.
The policy after being submitted to the ECC would be placed on the website for public information and to solicit views of the provinces. Sources claim the government would also engage provinces in policy formulation and prepare it after taking their inputs. The policy is expected to be submitted to the ECC by the end of the current month or in the first week of September.