Islamabad
The Petroleum Division (PD) of Energy Ministry has operationalised the ease-of-doing-business strategy, introduced in line with the prime minister’s vision, to remove red-tapism in getting approval for investment and advancements in different fields of the hydrocarbons.
“This sector has been divided into five key areas like oil and gas Exploration and Production (E&P), refining and marketing, pipelines and gas distribution, Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG), which needs reformation,” a senior official privy to petroleum sector developments told APP.
The Pakistan Tehreek-e-Insaf government was committed to completely overhaul this sector, he added.
After the strategy introduction, he said, as many as five private sector companies were planning to set up LNG terminals, having capacity to re-gasify 500-700 Million Cubic Feet per Day gas each.
The official said the government’s footprint in the coming years in the energy as well as other sectors was going to shrink. “It is not only the government’s stated policy but fervent desire and intention.”
He said the government was going to do major restructuring on the pipelines side by converting them into ‘open access pipes’ and during the next two years, “We intend to separate transmission from distribution and open up the sector for use through private supplies and open access. Let the private sector compete with the government distribution companies and let them run faster and become more efficient.”
Unfortunately, he said, the previous regimes took short term initiatives and introduced new laws and regulations to resolve the confronted problems temporarily, which in the long-run created hurdles in smooth petroleum sector activities.
He said the Petroleum Division, as per the vision of Prime Minister, had devised a prudent strategy, which would eventually attract local and foreign investments. “Increased investment will ultimately create more and more job opportunities.”
He said the strategy was aimed at encouraging new players in the petroleum sector that would oust inefficient from the industry. “An environment of competition will be ensured, ending the monopoly of individuals.”
He said some policy changes had been made to facilitate new companies in the E&P sector, abolishing 10 unnecessary steps, out of 24-30, required for getting approval to start drilling activities in potential areas. There will be a certain time-limit for approval at each step, and if no response was given, the case would be moved to the next stage automatically, he added.—APP
