Islamabad:
Pakistan has adopted an “open policy” to award extraction contracts of several billion dollars, by providing chances equal to world competitors, including the United States (United States), China and Russia.
China and Russia have long been rivals in the United States. Currently, Pakistan is committed simultaneously with the three countries.
The Ministry of Petroleum recently organized a webinar with American officials and companies and offered them joint ventures in mining contracts.
“We offer chances that are equal to Russia, China and the United States (United States) to engage in the mining sector,” the Minister of Petroleum, Ali Pervaiz Malik, in the media.
Pakistan is currently working on the golden and mining project of Rekodiq of several billion dollars, which will open investment paths from several countries such as the United States, China and Russia. He pointed out that Rekodiq would be a model to attract investments in the mining sector.
Answering a question, he excluded discrimination in the allocation of the extraction contract to any country.
“I went to Russia and offered Russian companies to invest in the Pakistan mining sector,” he said, adding that any business in these countries can participate in an offer when offered.
Answering another question, he made the previous government responsible for signing the second LNG contract with Qatar.
“If the LNG contract had not been concluded, we may not be confronted with the current defect situation in the gas sector,” he said, adding that the government would make the decision to revise the GNL agreement with Qatar which should be due in 2026, keeping the country’s interests.
There is a problem of demand and supply in the country concerning LNG, “said Malik, adding that 300 mmcfd of gas supply have been reduced due to LNG.
He held the energy division responsible for current circular debt problems and gas reduction, declaring that the electricity sector is not ready to raise the required gas supply.
In addition, the electricity division had taken the approval of the firm to reduce the guarantees of taking and payment for LNG, making the electricity sector a key contributor to the problem. The guarantees of taking and remuneration were reduced to 50%, against 60%, which annoyed the oil division.
The Minister of Petroleum said there should be a unified energy ministry, and the oil division should be made on board for any decision -making sector.
Pakistan is currently faced with a surplus of liquefied natural gas supply (LNG), a situation widely attributed to its second long -term agreement with Qatar. This agreement, initially envisaged to strengthen energy security, has rather led to an expensive LNG surplus in the country. The current government is now actively working to balance the country’s demand and energy supply.
The Minister said that the expensive RLNG has forced the government to suspend Aboriginal gas production of 300 mmcfd, and is trying to manage supply and demand.
Responding to recently increased fixed gas fees, Malik said that the 150 billion rupered grant to protected gas consumers in addition to the RLNG diversion of 250 billion RS, from electricity to domestic consumers, forced the government to increase the fixed charges of RS200, adding that the gas gas was even cheaper than GPL. “We are in an International Monetary Fund Program (IMF) which wants a zero deficit,” he noted.
Responding to a question concerning the renunciation of Iran’s oil and gas, he said that the ministerial committee was working to make a decision in this regard.
He also added that Pakistan and Iran were in arbitration in Paris on the Iran-Pakistan (IP) gas pipeline project, and a ministerial committee examined the situation after the United States war.
Regarding a renunciation of China and India, the minister said that they were not in a IMF program while Pakistan was in an IMF program. “Therefore, we must be careful whether we have to take a waiver or not,” said Malik, adding “we cannot go by default”.
Regarding oil imports from Iran, he said the country was still faced with restrictions in the United States. “The ministerial committee must make a decision on this subject,” he added.
Addressing the upgrading of the refinery, he said that the refineries’ requests were justified and that the tax was exempt from their production and that their margins have been regulated. “This is contrary to the basic principle,” said Malik, adding that the undue burden should not be put on refineries if the government wants them to invest $ 5 to 6 billion in upgrade projects. He said that the question of zero evaluation had been raised with the IMF, which said that “zero-stars” would not be viable.
The government had exempt the sales tax in the 2024-25 budget, which had led to the loss of Rs 34 billion for refineries and the IMF. The government also undertook to impose a sales tax up to 5% in the 2025-26 budget, but it had continued with zero rates, traveling refineries, which planned investments of $ 6 billion in the refining sector.
“I did my best to solve the problems encountered by refineries, and the Minister of Finance agreed to resolve it,” added the minister.
With regard to the oil and exploration sector, he criticized the taxation of a 40% corporate tax on exploration companies, which was very high and would harm the government’s indigenization efforts in oil and gas exploration.
Responding to a question relating to the liquidation of operations by foreign companies in Pakistan, he said that a Turkish company had participated in an offer held in April. He also added that the company had also signed an agreement with Oil and Gas Development Company Limited (OGDCL) to submit a joint offer for offshore drilling in Pakistan.
Regarding the JJVL operations of his LPG factory, he said that the SSGC worked there and that he would start his operations after a while.
During the recent increase in oil prices, Malik said that the government had not increased oil withdrawal from petroleum products.
