Latest news with #AliPervaizMalik
Express Tribune
14 hours ago
- Business
- Express Tribune
Emerging OMCs demandfair, equal treatment
Listen to article Pakistan's emerging oil marketing companies (OMCs) have voiced serious concerns about what they describe as unfair regulatory practices and unequal treatment compared to larger, established players in the petroleum industry. The Oil Marketing Association of Pakistan (OMAP) has written a letter to Petroleum Minister Ali Pervaiz Malik to highlight the challenges they are facing despite making huge investments and significant contributions to the country's petroleum sector. According to the letter, new OMCs have invested a total of Rs150 billion in petroleum infrastructure, of which Rs81 billion has been spent on building storage terminals, which now make up nearly 50% of the national storage capacity. Another Rs75 billion has been invested in developing retail outlets and other facilities and a further Rs70 billion is being injected into ongoing projects. These companies have also played an important role in ensuring fuel supply to remote and troubled areas, contributed large amounts in taxes and created thousands of jobs across the country. However, despite such large investments and efforts, emerging OMCs currently hold only 5% share of Pakistan's oil market. "OMAP believes this is unfair because these companies have more than 3,200 retail outlets and storage capacity equal to that of major players," the letter said. They argued that market rules and policies, although designed to encourage competition and investment, were not being applied equally. One of the main issues highlighted was the strict enforcement of the rule that required all OMCs to maintain a minimum 20-day stock cover. OMAP argued that the rule should be applied flexibly, considering each company's size and financial strength. However, they claimed, that the regulator – Oil and Gas Regulatory Authority (Ogra) – has not provided this flexibility.
Business Recorder
14 hours ago
- Business
- Business Recorder
Letters sent to ministers: APTMA for revising grid connection charges, suspending FO levies
ISLAMABAD: All Pakistan Textile Mills Association (Aptma) has sought rationalization of grid connection charges, reduction in grid connection time and suspension of petroleum and carbon levies on Furnace Oil (FO). In letters to Power Minister Sardar Awais Leghari, Petroleum Minister Ali Pervaiz Malik and Director General Textile (Commerce Ministry), Chairman APTMA, Kamran Arshad stated that the government has adopted policies to transition industrial captive generation loads to grid electricity. However, the punitive levies imposed have rendered industrial operations financially unviable without offering a viable transition pathway to grid-based power. Ready to help build robust framework: APTMA questions Nepra's tariff-setting capacity Aptma maintains that the imposition of a Rs. 791/Mmbtu levy on gas used for captive power generation has made it entirely cost-prohibitive. While intended to encourage migration to the electricity grid, the reality on ground is that many industrial units still lack grid connections and, in response, have been compelled to switch to furnace oil (FO)-based captive generation. The Association stated that the imposition of a petroleum levy of Rs. 82,000/ton on FO-on top of the base price of approximately Rs. 130,000/ton—has now left these industries with no economically viable power source. Aptma has cited the example of Soorty Enterprises, a major textile and apparel manufacturer with $400 million in annual exports, employing 35,000 people across different divisions. Soorty has two mills, one in Landhi under KE and another on the Super Highway under HESCO, with a total power requirement of 35MW. Following the grid transition levy on gas, both shifted from gas to FO-fired captive generation that costs around Rs. 33/kWh, compared to around Rs. 29-30/kWh on the grid and will shoot up to Rs. 51/kWh following the levies on FO. The company prefers to run its operations on the electricity grid under KE and HESCO, as it is cheaper than FO-fired captive generation even before the levy. However, KE and HESCO have quoted a cost of Rs 8 billion each to provide grid connections to these units, totalling Rs 16 billion to be paid up front. Additionally, they have been told that it would take about 3 years to connect them to the grid, with no guarantee of timely completion or energisation. On top of this, the company would be responsible for getting approvals from several government departments (like FWO, railways, local authorities, etc.), which adds further costs and difficulties. This situation is wholly untenable. The company cannot rely on gas or FO-fired generation for 3 years with the punitive levies as it will go out of business. However, paying Rs. 16 billion upfront for a grid connection with no guarantee of timely access will also push the company towards bankruptcy. It is at a dead end, with no viable options. 'While we have highlighted the example of only one company, and that too one of the biggest exporters of Pakistan, the same issues are being faced by several of our members, particularly in urban hubs like Lahore and Karachi where issues related to right of way and land availability are prevalent,' Aptma Chief said adding that no company can afford to pay billions of rupees for a grid connection, especially without any guarantee of timely completion. On the one hand, the industry is being penalized for using alternate fuels such as gas and FO and on the other hand, it is effectively barred from accessing the grid due to prohibitively high connection charges, excessive lead times, and bureaucratic delays. It is neither reasonable nor practical for the Government to mandate grid transition while the distribution companies impose insurmountable barriers to achieving it. Considering the foregoing, Aptma recommended the following: (i) Grid connection charges for export-oriented industrial units be rationalized and brought within a financially viable range;(ii) Grid connections be completed and fully energized within a maximum period of six months from fulfillment of demand notes; and (iii) all levies on industrial captive generation -including petroleum and carbon levies on FO-be suspended until all industrial units relying on gas/FO as primary sources of energy are provided affordable and operational grid connections. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Business
- Express Tribune
Pakistan offers US mining ventures
Pakistan has invited US companies to explore the potential of public-private partnerships and joint ventures in the mining sector, which is enriched with vast mineral resources. "With one of the world's largest undeveloped copper and gold deposits at Reko Diq and a strong commitment to economic reforms, this is the right time for US investors to explore and engage," US Charge d'Affaires Natalie Baker stated while addressing a webinar. The government of Pakistan, in collaboration with the US embassy, hosted a high-level webinar titled "Opportunities in Pakistan's Mining Sector – Unlocking Mineral Potential," aimed at promoting investment opportunities and inviting American companies to pump capital into the mineral and mining sector. The virtual event was hosted together by Federal Minister for Energy (Petroleum Division) Ali Pervaiz Malik and US Charge d'Affaires Natalie Baker at the Oil and Gas Development Company Limited (OGDCL) head office in Islamabad. The webinar brought together senior officials from Pakistan's Ministry of Energy, leading Pakistani mineral and energy companies, representatives of the Special Investment Facilitation Council (SIFC) and top US diplomats and energy sector stakeholders. Petroleum Secretary Momin Agha, OGDCL Managing Director Ahmed Hayat Lak, MDs of Government Holdings Private Limited, Mari Energies, Pakistan Mineral Development Corporation (PMDC), DG mines and senior representatives from Ark Metals, BMEC, BMRL and Pakistan Petroleum, along with the US embassy's economic counsellor and energy officer, participated in the event. Various American business representatives took part in the conference virtually. In his remarks, Energy Minister Ali Pervaiz Malik highlighted the vast potential of Pakistan's mining sector. "Pakistan is richly endowed with mineral resources, including gold, copper, coal, rare earth elements and other critical minerals essential for renewable energy transition," he said. The minister noted the international significance of Reko Diq copper and gold project and pointed to recent discoveries in Balochistan's Chaghi district and Khyber-Pakhtunkhwa's Waziristan region. He emphasised Pakistan's role in global transition towards clean energy, citing the country's abundant reserves of critical minerals as a foundation for its green transition. "Renewable energy development is central to our climate goals and economic future. We are facilitating this shift by supporting the mining of essential minerals and improving ease of doing business," he stated. The energy minister acknowledged the success of the Pakistan Minerals Investment Forum 2025 (PMIF25), held earlier this year, which attracted over 5,000 participants and brought global attention to the country's mineral wealth. "PMIF25 marked a turning point, showcasing Pakistan as a serious player in the global minerals economy," he said and invited US companies to explore the potential of public-private partnerships and joint ventures. Ali Pervaiz Malik stressed that Prime Minister Shehbaz Sharif and army chief Asim Munir were personally leading the development of the mining sector. He underscored that the government of Pakistan and the SIFC were fully committed to providing all kinds of facilitation to international companies to build partnerships aimed at unlocking the vast mineral reserves. The US charge d'affaires reaffirmed the longstanding economic partnership between the United States and Pakistan. "Pakistan offers immense opportunities in the mineral sector," the envoy said. Baker commended Pakistan's recent policy efforts to unlock the mining sector's potential and underlined the US embassy's commitment to supporting American businesses looking to invest in Pakistan. "We are here to facilitate connections and create win-win partnerships. US investors have long contributed to Pakistan's development and we see great promise in this sector," she added. Participants were briefed on ongoing regulatory reforms, including the development of the National Minerals Harmonisation Framework aimed at streamlining investment procedures and aligning federal and provincial regulations. The digitalisation of geological data and upgrading of the Geological Survey of Pakistan were also underway to improve transparency and data access for investors. The Pakistani side also hosted a Q&A session with American investors to clear ambiguities or address queries. In her closing remarks, Baker reiterated the US government's commitment to supporting Pakistan's economic development and deepening bilateral economic ties. "We believe in Pakistan's potential and we see a shared opportunity in its journey towards inclusive, sustainable growth," she concluded.
Business Insider
5 days ago
- Business
- Business Insider
Russia eyes three-way energy pact with Pakistan, Nigeria in major oil and gas deal
In a significant move that could reshape cross-continental energy partnerships, Russia has offered Pakistan stakes in its oil and gas fields located in Nigeria. Russia has proposed offering Pakistan stakes in its oil and gas fields located in Nigeria. Pakistan aims to strengthen bilateral ties and secure long-term energy supplies through this partnership. If finalized, the deal could form a tri-continental energy alliance involving Russian, Pakistani, and Nigerian resources. The proposal, aimed at strengthening bilateral ties and securing long-term energy supplies for Pakistan, highlights Moscow's growing interest in expanding its presence in Africa's resource-rich energy sector. Pakistan, which previously attempted oil and gas exploration in Iraq through Pakistan Petroleum Limited (PPL) with little success, is now shifting strategy. According to The Express Tribune, Islamabad is looking to invest in oil and gas fields already under development to reduce risk and enhance returns. During an ongoing visit to Moscow, a Pakistani delegation led by Petroleum Minister Ali Pervaiz Malik conveyed Pakistan's interest in acquiring stakes in such projects, particularly those in Nigeria involving Russian firms. Russian energy giant Gazprom, led by Sergey Tumanov, General Director of Gazprom International, is spearheading the initiative and has invited Pakistan's largest oil and gas explorer, the Oil and Gas Development Company Limited (OGDCL), to join overseas ventures. Ahmed Hayat Lak, Managing Director and CEO of OGDCL, also participated in the meeting, highlighting the seriousness of Pakistan's bid. For Islamabad, the potential deal represents an opportunity to ease pressure on its foreign exchange reserves while diversifying its energy sources in a volatile global market. Gazprom's footprint in Nigeria's oil industry Gazprom, Russia's state-owned energy giant, has steadily expanded its presence in Nigeria's oil and gas sector through strategic partnerships, joint ventures, and bilateral agreements. Traditionally focused on natural gas exports to Europe and Asia, Gazprom is increasingly turning to Africa as part of Moscow's broader strategy to diversify its global energy reach. In countries like Algeria, Libya, and Nigeria, Gazprom has engaged in exploration, infrastructure development, and production-sharing arrangements. Nigeria, in particular, has become a focal point of the company's African ambitions, following a $2.5 billion deal signed with the Nigerian National Petroleum Corporation over a decade ago. Its latest move, inviting Pakistan to co-invest in Nigerian oil and gas fields signals a multi-layered strategy that ties together diplomatic, commercial, and logistical interests. If finalized, the partnership would represent a significant geopolitical and economic alignment, linking Russian assets, Pakistani capital, and Nigerian resources in a tri-continental energy alliance. gas reserves and plays a major role in global crude exports.
Express Tribune
7 days ago
- Business
- Express Tribune
Russia offers stakes in its Nigeria oil, gas fields
Listen to article Russia has offered Pakistan stakes in its oil and gas fields in Nigeria, a move that will help secure energy supplies and ease pressure on foreign exchange. Russian energy giant Gazprom wants Pakistan's largest oil and gas explorer – Oil and Gas Development Company Limited (OGDCL) – to enter into joint ventures in its overseas oil and gas exploration projects. At present, Pakistan produces 15% of crude oil locally whereas remaining needs are met through expensive imports that build pressure on foreign exchange reserves. Earlier, Pakistan Petroleum Limited (PPL) tried to explore oil and gas in Iraq but that venture did not yield any result. Now, a Pakistani delegation, led by Petroleum Minister Ali Pervaiz Malik, which is on a visit to Russia, has informed Moscow that Pakistan is interested in getting stakes in the fields that are already being developed to avoid risks. Ali Pervaiz Malik, who had replaced former petroleum minister Musadik Malik, was keen to address issues of oil and gas sectors. OGDCL Managing Director Ahmed Hayat Lak is also part of the delegation. Sources told The Express Tribune that the petroleum minister held a meeting with the chief executive officer of Gazprom, a Russian company responsible for overseas investment in oil and gas fields. During the meeting, the CEO of Gazprom offered Pakistan's petroleum minister to form joint ventures between OGDCL and Gazprom in those fields which were being operated by the Russian company outside Pakistan and Russia. At present, Gazprom is operating in different countries such as Bangladesh, Vietnam and Nigeria. He informed the Pakistani side that OGDCL could enter into a joint venture with Gazprom in any field. Pakistani companies including OGDCL, Mari Petroleum, Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL) had also formed a joint venture with a state-owned firm of the UAE in Dubai in an offshoring block. The UAE had offered a field to Pakistani companies, which had already been developed to avoid risks and was not a new block. Sources said that the Pakistani side informed the CEO of Gazprom that it was not interested in those blocks which had not been developed so far and wanted to follow the Dubai project model. Pakistan wants to get stakes in those fields which have already been developed by Gazprom. According to sources, Gazprom offered the petroleum minister to buy stakes in a developed hydrocarbon block in Nigeria, where no risk was involved. It proposed that Gazprom, a Nigerian state-owned company and OGDCL could become partners in that field. Sources said that the Russian company would now send a proposal to OGDCL for evaluation as it would be a pure commercial deal. The Pakistani side had already offered Russia to become part of OGDCL's bid for offshore drilling in Pakistan. Officials say a joint venture with Gazprom in Nigeria will also become a base for engaging the Russian company in offshore drilling in Pakistan. OGDCL and other Pakistani companies have already reached an understanding with a Turkish firm to offer a joint bid for an offshore exploration field in Pakistan. Officials say Pakistan is also looking towards the Russian firm to become its partner in this venture. Russia has been struggling to establish a firm footing in Pakistan's energy sector for the last one decade but it has not been able to achieve success. It was also working with Pakistan to build an LNG pipeline from Karachi to Lahore for transporting imported gas. However, US sanctions on Russian firms were a key hurdle, which could not allow implementation of the project. The structure of Pakistan Gas Stream Project was changed almost six times to avoid US sanctions but nothing could provide successful. Now, Gazprom has offered Pakistan to become a partner in oil and gas fields in Nigeria. Pakistan is hopeful that this joint venture could become successful.
