Deputy Prime Minister Muhammad Ishaq Dar chaired a meeting to address challenges faced by Exploration and Production (E&P) companies and vowed government's commitment to ensuring energy security and fostering economic growth was at the forefront, as new measures were outlined to attract both local and foreign investment in the sector.

Ishaq Dar led the first meeting of a newly formed committee dedicated to tackling the pressing issues within the petroleum sector.

The meeting brought together key figures, including the Ministers of Petroleum, Finance, Revenue, and Energy, along with representatives from both the public and private sectors.

Emphasizing the critical role of the petroleum sector in the nation's energy security and economic development, the Deputy Prime Minister pledged to implement comprehensive measures designed to create a more favorable environment for investment.

He acknowledged the concerns raised by local and international E&P companies, particularly around the sector's security and financial stability, which have been strained by the growing issue of circular debt.

During the discussions, private sector representatives voiced their worries about the downstream gas sector's sustainability, advocating for greater openness to private companies as a way to enhance the sector's viability.

Dar responded by directing the Petroleum Division to work closely with industry stakeholders to resolve these challenges, including the revolving credit issues that have been a significant hurdle.

Amendments in Ogra ordinance

One of the key outcomes of the meeting was the directive for the Petroleum Division to draft proposals aimed at amending the OGRA Ordinance, which would include introducing a mechanism for adjusting gas rates on a monthly or quarterly basis.

The step is seen as essential for ensuring the financial health of the sector and maintaining investor confidence.

Security was another major focus of the discussions. The forum instructed the Interior Division to collaborate with E&P companies to address security concerns, particularly in regions where operations are more challenging.

The development of a single-window facility at both federal and provincial levels was ordered, streamlining the process for addressing security issues and ensuring smoother operations for companies in the field.

The meeting underscored the importance of implementing recent amendments to the Petroleum Policy of 2012, with guidelines issued to prepare a framework for their execution.

The framework is expected to pave the way for more efficient exploration of new petrol and gas reserves, further boosting the sector's potential.