Minister of State for Petroleum, Dr. Musadik Malik, said on Wednesday that the government had introduced a new policy of a ‘bonded warehouse’ to eliminate the problem of dry outs in the petroleum sector.
Under this policy, he explained that foreign companies engaged in the legal oil business worldwide could construct bonded warehouses for oil storage in major cities. This initiative would not only bring foreign exchange reserves to Pakistan but also ensure the availability of petrol and diesel in the country at all times.
Furthermore, it would break the monopoly of a few oil marketing companies, which had previously created artificial shortages of oil in the country under various pretexts. The policy would also discourage illegal hoarding of oil for higher profits, he added.
Addressing a press conference, Dr. Musadik stated that the government was taking appropriate and comprehensive measures to maintain or gradually lower energy prices, including petroleum, gas, and electricity.
He added that foreign companies storing petroleum and diesel in bonded warehouses would need to register themselves in Pakistan and open business accounts in local commercial banks. This would resolve the issue of LC (Letter of Credit) confirmation, as these companies would conduct business transactions in dollars or Pakistani rupees directly through banks.
Additionally, it would relieve pressure on the country’s foreign exchange reserves and provide some leeway for the government to make various payments. Dr. Musadik emphasized that this initiative would eliminate the charges associated with LCs, which were previously passed on to the end consumer.
He asserted that this would be a significant relief and facilitation for small filling stations that faced difficulties during oil shortages, as they would now be able to continue their business by purchasing oil from the bonded warehouses.
Dr. Musadik stated, “On behalf of the Prime Minister, I am sharing this good news with the people, as it is Eid festivities, and we should set aside political talks for a while. Today, I will not speak about what the PTI is doing or has done to bring the country to the verge of collapse. It’s Eid celebration, so it is the responsibility of the government to instill hope in the people.”
The Minister of State for Petroleum mentioned that all criticism from the PTI regarding the Russian oil agreement and its shipment had now subsided, as the second oil shipment from Russia had also arrived in Pakistan.
He highlighted that the coalition government recently made a deal with Azerbaijan on its own terms and conditions for inexpensive gas. Under this deal, Azerbaijan would offer a gas tanker every month, and it would be up to Pakistan whether to make the purchase or not. He stated, “We will purchase this gas if the price is favorable to us.”
This deal would also help end gas shortages in the country during the winter season. Dr. Musadik remarked, “We have arranged inexpensive oil and gas and have also implemented an effective and viable solution to address the problem of dry outs in the petroleum sector.”
Additionally, he mentioned that as part of the government’s commitment to promoting renewable energy, the Prime Minister had launched four solar energy projects with a cumulative capacity of 10,000 megawatts.
The Prime Minister had also instructed the development of a comprehensive plan to redirect all major petroleum companies in Pakistan toward renewable energy, green hydrogen, and green ammonia, he added.
