Admitting that alternative resources to natural gas were being controlled by a cartel in the country, Federal Minister for Petroleum and Natural Resources Dr Asim Hussain on Friday told the Senate that all dues of Pakistan State Oil (PSO) would be cleared by the end of this month.
“I am running from pillar to post for clearing PSO’s dues and I have been assured by the Finance Ministry in this regard. If the amount owed by various departments to PSO is not recovered and its dues are not cleared, it will be disastrous for the country, as our economy is no more resilient to sustain further burden and I am seriously working on the issue and all dues of PSO will be cleared by the end of this month,” Dr Hussain told the Upper House in response to a supplementary question raised by Senator Azim Swati.
To a question by Ismail Bulaidi about the total payable dues of PSO, Dr Hussain told the house that over Rs 38.8 billion were to be paid by government departments that included WAPDA, PIA, Pakistan Railways, Oil and Gas Development Corporation, National Logistic Cell, Pakistan Navy, Pakistan Steel Mills, Pakistan Ordnance Factory, Wah and some others, whereas the total amount payable by non-government customers was over Rs 168.7 billion, including Rs 14.2 billion price differential receivable from the government of Pakistan.
He said the non-government customers included HUBCO, KAPCO, KESC and other some other companies.
When Senator Wasim Sajjad asked the minister if he could assure the House in categorical terms that there would not be gas load shedding in the coming winter, the minister said he could not assure categorically but efforts were afoot for equitable sharing of the shortfall.
He said that it was unfortunate that all alternatives to natural gas in the country were being controlled by a cartel. He added that his priority would be minimum gas load shedding in the country in winter.
In a written reply to a question by Senator Tahir Mashhadi, the minister for petroleum told the House that around 131 exploratory wells were drilled and exploration licenses for over 30 blocks were issued in 2010 and various companies were being provided incentives for exploring gas and oil in the country and total licenses granted in the country were 133.
He, however, told the House that Pakistan was not importing oil from Iran and refinery was facing difficulty in opening a Letter of Credit (LC) due to the US and European countries sanctions against Iran. He said the oil produced by Iran was not compatible with refinery in Pakistan.
Senator Safdar Abbasi raised objection that if Pakistan could not open the LC due to sanctions, how did it plan to actually import gas from Iran.
Dr Hussain said banks had neither flatly refused nor offered to open an LC and Pakistan was facing difficulties in this regard owing to the geo-strategic situation.
He added that the government would soon announce a new petroleum policy and if any member of the House wanted to give suggestions, he would welcome the proposals.
Meanwhile, the House admitted for further discussion an adjournment motion moved by Professor Khurshid Ahmad on the news item appeared in a section of press that rain and flood-affected wheat and rice was purchased, causing loss of Rs 1.75 billion to the national exchequer. Minister for Food Security Mir Israrullah Zehri did not oppose the motion.
