ISLAMABAD: Prime Minister Shehbaz Sharif has formed a committee, led by Deputy PM Ishaq Dar, to formulate proposals for an oil and gas exploration policy in Pakistan after consultations with stakeholders, Sharif’s office said on Saturday.
The development came after the prime minister’s meeting with a delegation of petroleum and gas exploration and production companies in Islamabad, wherein he said exploring domestic oil and gas reserves was his government’s priority.
He invited petroleum and gas exploration firms to search for offshore reserves, saying that production from local reserves would save the country’s valuable foreign exchange and result in availability of cheaper oil and gas to the masses.
“After consultation with the representatives of the sector, the committee will formulate proposals for creating an attractive policy for exploration and development of petroleum and gas reserves in the country,” Sharif’s office said in a statement.
On the occasion, petroleum and gas exploration and production companies announced that they would invest $5 billion in Pakistan over the next three years. During this period, 240 sites will be drilled in search of petroleum and gas, according to the statement. The prime minister directed authorities to address the problems facing the sector on a priority basis.
Pakistan, which has been struggling with a balance of payments crisis, record inflation and steep currency devaluation, lacks adequate resources to run its oil- and gas-powered plants and imports most of its energy needs.
Consequently, planned power cuts, also known as loadshedding, plague the South Asian country of 241 million every summer due to fuel shortages and high demand, varying in length in different areas.
In April, Sharif had asked authorities to speed up efforts for foreign investment in solar energy projects as well as to accelerate the process of privatization of power generation companies and auction of inefficient power houses.
PM forms committee to draft oil, gas exploration policy for energy-deficient Pakistan
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PM forms committee to draft oil, gas exploration policy for energy-deficient Pakistan
- Pakistan, embroiled in an economic crisis, lacks adequate resources to run its oil- and gas-powered plants and imports most of its energy needs
- Planned power cuts, also known as loadshedding, plague the South Asian country of 241 million every summer due to fuel shortages and high demand
Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure
- Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
- Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone
KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.
The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said.
The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim.
“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said.
Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.
The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs.
Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said.
“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said.
The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital.
To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.
