KARACHI: Pakistan plans to fully deregulate its petroleum product market in 2027 after the country’s oil refineries make necessary technical upgradations in 2026, according to the draft of the upcoming Pakistan Oil Refining Policy, 2021, seen by Arab News.
Earlier this month, the Cabinet Committee on Energy had given the policy its approval in principle, though it was still required to go through various phases before its final endorsement.
Petroleum product rates in Pakistan are currently determined by the government that periodically revisits them to keep them consistent with the price fluctuations in the international market.
“The target date for full deregulation is December 31, 2027,” the document says. “The mechanism for deregulation will be finalized in consultation with all the stakeholders.”
“The objectives of this policy include a shift to complete deregulation on pricing within a defined time period to be reviewed by the Government of Pakistan to allow the benefit of competitive forces to pass on to the consumers,” the draft adds.
Pakistan plans to offer various incentives, including a 10-year income tax holiday, to oil refineries in the country that are willing to upgrade their hardware to produce fuel with Euro-V specifications.
The Euro-V standards require a cutdown in the sulfur content to avoid air pollution and improve vehicle efficiency which is mostly affected by low quality fuels.
At present, there are five oil refineries in Pakistan with can reach a maximum collective output of 450,000 barrels per day. If these oil refineries work at their optimal capacity, they can yield up to 20 million tons of oil per annum.
The government has also decided to announce tariff protection for six years for the refineries that choose to upgrade. According to petroleum experts, the minimum financing for the upgradation of hardware would roughly be around $4-5 billion.
“Roughly, the refineries will need four to five billion dollars in the next five years to upgrade and produce fuel with Euro-V specifications,” Dr. Nazar Abbas Zaidi, former secretary of the Oil Companies Advisory Council, said.
He added the existing refineries had sought the government support which was likely to be offered through various incentives under the new policy.
“The upgradation of refineries is vital to ensure the country’s energy security,” Zaidi continued.
According to the draft policy, the Pakistani oil refineries are required to complete the upgradation process by December 31, 2026.
The document further says the deregulation will allow oil marketing companies (OMCs) to set the prices themselves, based on the quality of fuel, the location and other value-added services.
“Under the deregulated petroleum market, the role of the government will be minimized and market forces will determine the price of different kinds of fuels on the basis of their demand and supply,” Samiullah Tariq, director research at the Pakistan-Kuwait Investment, said.
“The deregulated environment will promote competition among the refineries and consumers will have the option to choose the best product at competitive rates,” he said.
Tariq maintained the regulated regime was one of the key factors that discouraged the upgradation of the country’s existing oil refineries.
According to the proposed policy, the deregulation model is already functional in the country for Hi Octane Ron 97.
“However, even in this [deregulated] environment, the product pricing at the pumps operating under the banner of Pakistan State Oil shall set a market benchmark, since PSO has the largest footprint across the country and is majority owned by the government,” it says.
Other OMCs may charge more or less than the PSO, depending on their level of service, convenience of location and quality of products.
“The actual spirit of deregulation will be witnessed after the government abolishes the inland freight equalization margin,” Aftab Hussain, former chief executive officer of Pakistan Refinery, told Arab News. “This implies that the fuel may become two rupees cheaper in Karachi or two rupees costlier in Peshawar.”
“If the government wants to deregulate on the basis of ex-refinery rates in 2027, it can do it now because furnace oil and jet fuel are already deregulated products,” he said, adding that there were several things in the proposed policy that needed clarification.
Petroleum expert said there would be multiple benefits of the upgradation of oil refineries and deregulation of petroleum products.
“The major benefit of the deregulated market environment will be a uniform standard of petroleum products in our country,” Zaidi said. “At present, high sulfur content in fuel is causing health issues that need to be addressed.”
A Texas-based energy expert, Masood Abdali, said the upgradation of Pakistan’s oil refineries will also cut the country’s import bill.
“Presently, a substantial quantity of crude that is being exported due to a lack of refining capabilities will also be processed in the country which will cut down the import bill,” he said.
Pakistan has exported 49,272 metric tons of crude worth $28.3 million during the current fiscal year, up by 88 percent as compared to the corresponding period last year.
Pakistan sets 2027 deadline to fully deregulate petroleum sector
https://arab.news/5jvmp
Pakistan sets 2027 deadline to fully deregulate petroleum sector
- The government plans to offer incentives to the country’s oil refineries to upgrade and produce fuel with Euro-V specifications
- The draft of the Oil Refining Policy, 2021, says the deregulation mechanism will be finalized in consultation with all stakeholders
‘The audacity’: German envoy’s speech disrupted by pro-Palestinian protester at Lahore rights conference
- Ambassador Grannas was speaking on safeguarding civil rights in South Asia when his speech was interrupted
- The protester said Germany was ‘brutally abusing’ those speaking in favor of the rights of Palestinian people
ISLAMABAD: German Ambassador to Pakistan Alfred Grannas was challenged by a pro-Palestine protester on Saturday shortly after he began his speech on safeguarding civil rights in South Asia at a high-profile conference held in the eastern city of Lahore.
Germany has clearly sided with Israel since the beginning of the war in Gaza after a surprise attack was launched by Hamas on Oct. 7 as a response to the deteriorating Palestinian condition living under Israeli occupation.
The conflict, which has led to the killing of over 34,000 Palestinians, has led to widespread criticism of the Israeli government, leading to protests in different parts of the world.
While countries like South Africa have accused the Jewish state of committing genocide in Gaza, authorities in Germany have forcibly removed protest encampments and gone into people’s houses to arrest them for critical social media posts on charges of antisemitism.
“I am shocked by the audacity that you are here to talk about civil rights while your country is brutally abusing the people speaking for the rights of the Palestinians,” the young protester standing at the back of the hall shouted at him.
Many people around him supported him by shouting “Free, Free Palestine” and “From the River to the Sea.”
The German envoy, who looked visibly agitated by the development, responded by shouting back and pointing to the exit.
“If you, if you want to shout, go out,” he said. “There you can shout. Because shouting is not a discussion.”
The incident happened at the Asma Jahangir Conference that focuses on dialogue and advocacy for human rights issues in Pakistan and its broader neighborhood.
Last year in November, a Pakistani classical dancer and human rights activist Sheema Kermani raised slogans for a ceasefire at a British Deputy High Commission event in Karachi and later complained of being “escorted out.”
Pakistan PM leaves for Riyadh to attend World Economic Forum meeting
- PM Sharif is expected to discuss inclusive growth, regional collaboration and energy issues at the gathering
- He will also attend the Islamic Summit Conference in Gambia on May 4 to discuss Islamophobia and Palestine
ISLAMABAD: Prime Minister Shehbaz Sharif left for Riyadh on Saturday to attend a two-day special meeting of the World Economic Forum (WEF).
The WEF special meeting on global collaboration, growth and energy will be held in the Saudi capital of Riyadh on April 28-29, according to PM Sharif’s office.
The prime minister was extended an invitation to attend the meeting by Crown Prince Mohammed bin Salman and Professor Klaus Schwab, the WEF executive chairman.
“Prime Minister Muhammad Shehbaz Sharif has left for Saudi Arabia to attend the special World Economic Forum meeting,” said an official statement circulated in Islamabad.
Prior to his departure, the PM Office said Sharif would be accompanied by a high-level delegation including foreign minister Ishaq Dar and finance minister Muhammad Aurangzeb.
“The Prime Minister and the Ministers will participate in WEF discussions on issues related to trade and investment measures, new investment frameworks, restructuring of supply chains, sustainable growth, and the energy landscape,” it added.
Sharif’s participation in the forum will afford Pakistan an opportunity to highlight its priorities in global health architecture, inclusive growth, revitalizing regional collaboration, and the need for striking a balance between promoting growth and energy consumption.
“On the margins of the main event, the Prime Minister and his delegation will hold bilateral meetings with world leaders, including the Saudi leadership, heads of international organizations, and other prominent figures participating in the event,” the statement added.
The prime minister will also attend the 15th session of the Islamic Summit Conference organized by the Organization of Islamic Cooperation (OIC) on May 4-5 in the Gambian capital of Banjul to discuss a variety of regional and global issues, including Palestine, Islamophobia, climate change and the status of minorities, the Pakistani state-run APP news agency reported.
The session will be held under the slogan “Enhancing Unity and Solidarity through Dialogue for Sustainable Development,” according to a press release issued by the OIC General Secretariat.
The Islamic Summit is a principal organ of the OIC focused on the formulation, development, and implementation of decisions made by 57 member states. It is attended by concerned heads of state such as prime ministers, presidents, emirs and other equivalent heads.
Pakistan to set up special force for security of foreign nationals in Islamabad
- The development came days after a suicide attack targeted a van carrying Japanese nationals in Karachi
- It followed similar attacks on Chinese nationals in Pakistan’s northwestern and southwestern regions
ISLAMABAD: Pakistan has decided to establish a special force for the security of foreigners, Pakistani state media reported on Saturday, days after militant attacks targeted foreign nationals in the South Asian country.
The decision was made at a meeting presided over by Interior Minister Mohsin Naqvi to review the law-and-order situation in the federal capital territory.
The development came days after a suicide attack targeted a van carrying Japanese nationals, who were on their way to work in the southern Pakistani city of Karachi.
During the meeting, the interior minister directed authorities to ensure foolproof security of foreign nationals in Islamabad, the state-run Radio Pakistan broadcaster reported.
“Special attention should be given to the security of all important offices and places including the red zone in Islamabad,” the report read.
During the meeting, Islamabad police chief, Ali Nasir Rizvi, also gave a detailed briefing on the law-and-order situation in the capital.
Pakistan has witnessed militant attacks on foreign nationals in recent months, particularly the Chinese working in Pakistan on projects relating to the China-Pakistan Economic Corridor (CPEC), a major segment of Beijing’s Belt and Road infrastructure initiative.
Late last month, five Chinese nationals and their Pakistani driver were killed in northwest Pakistan, when a suicide bomber rammed his explosive-laden car into the bus carrying them to Dasu Dam, the biggest hydropower project in Pakistan, where they worked.
The attack came less than a week after Pakistani security forces killed eight Balochistan Liberation Army separatists who opened fire on a convoy carrying Chinese citizens outside the Chinese-funded Gwadar port in the volatile southwestern Balochistan province.
Pakistan face New Zealand in 5th T20, aim to end series on positive note
- Two earlier defeats came as a jolt to full-strength Pakistan in their preparations for T20 World Cup
- New Zealand, missing a host of players, are likely to draw confidence from the wins against Pakistan
ISLAMABAD: Pakistan will be facing New Zealand in Lahore today, Saturday, in the final Twenty20 of their five-match series, Pakistani state media reported.
Pakistan have already lost the chance of clinching the series as the Babar Azam-led side trail the series 1-2, with the first game washed away by rain.
The ‘Green Shirts’ are looking to level the series with a win today.
“The match will start at 7:30 in evening,” the state-run Radio Pakistan broadcaster reported.
The defeats came as a jolt to a full-strength Pakistan side in their preparations for the Twenty20 World Cup to be held in the United States and West Indies in June.
New Zealand, missing a host of players due to the Indian Premier League, injuries and unavailability, are likely to draw confidence from their strength in depth going into the World Cup.
Egypt takes key role in renewed diplomatic push for truce in Gaza
- Officials in Israel described latest moves as ‘an attempt by Egypt to restart the talks’ after Qatar mediation efforts broke down
- Egyptian intelligence chief Abbas Kamel to make clear ‘will not tolerate’ Israel’s deployments of troops along Gaza-Egypt border
CAIRO: A high-level Egyptian delegation was in Israel for talks on Friday amid a new diplomatic push for a truce in the Gaza war and the release of Israeli hostages held by Hamas.
The visit followed a trip to Cairo on Thursday by Israeli army chief Lt. Gen. Herzi Halevi and Shin Bet domestic intelligence service head Ronen Bar.
Officials in Israel described the latest moves as “an attempt by Egypt to restart the talks” after previous mediation efforts led by Qatar broke down. They told the Egyptian delegation that Israel was ready to give hostage negotiations “one last chance” to reach a deal before moving forward with an invasion of the southern city of Rafah.
“Israel told Egypt that it is serious about preparations for the operation in Rafah and that it will not let Hamas drag its feet,” one official said.
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Palestinians have been killed in the Gaza Strip during more than six months of war between Israel and Hamas.
Egypt is concerned about a potential influx of Palestinian refugees from Gaza if the war continues with the long-threatened Israeli offensive into Rafah, and has taken an increasingly active role in the negotiations.
“The Egyptians are really picking up the mantle on this. Egypt wants to see progress, not least because it’s worried about a prospective Rafah operation,” the official said.
Israel was increasingly looking past Qatar as a main broker, according to the official, after it failed to respond to Israeli demands to expel Hamas leaders from its territory or curb their finances.
“Qatar is still involved but in a lesser capacity,” the official said. “It’s clear to everyone they failed to deliver, even when it came to expelling Hamas or even shutting down their bank accounts.”
Hamas officials said they still considered Qatar a key mediator, alongside Egypt.
White House national security adviser Jake Sullivan said he saw fresh momentum in the talks.
“I believe that there is a renewed effort … to try to find a way forward,” he said “Do I think that there is … new life in these hostage talks? I believe there is.”
No new proposals
An official, who spoke on condition of anonymity, said Israel had no new proposals to make, although it was willing to consider a limited truce in which 33 hostages would be released by Hamas, instead of the 40 previously under discussion.
“There are no current hostage talks between Israel and Hamas, nor is there a new Israeli offer in that regard,” the official said. “What there is, is an attempt by Egypt to restart the talks with an Egyptian proposal that would entail the release of 33 hostages — women, elderly and infirm.”
According to Israeli media reports, Israeli intelligence officials believe there are 33 female, elderly and sick hostages left alive in Gaza, out of a total of 133 still being held by Hamas and other Palestinian militant groups.
There was no decision on how long any truce would last but if such an exchange were agreed, the pause in fighting would be “definitely less than six weeks,” the official said.
The visit by the Egyptian delegation came a day after the United States and 17 other countries appealed to Hamas to release all of its hostages as a pathway to end the crisis in Gaza. Hamas vowed not to relent to international pressure.
Hamas said it was “open to any ideas or proposals that take into account the needs and rights of our people.” However it stuck to central demands Israel has rejected, and said it criticized the statement for not calling for a permanent ceasefire and the withdrawal of Israeli forces from Gaza.
