The problem lies elsewhere
All three ministries connected with the ongoing petrol shortage are responsible for the crisis which has exposed the PML-N’s claims of good governance. While Abid Sher Ali concentrated on realising the unpaid power dues from KP and Sindh ruled by PTI and PPP, he failed to focus on the influential defaulters who owed Rs375 billion. He could have achieved better results by directing power distribution companies to cut off supplies to chronic offenders. The wrong priorities escalated the circular debt and overburdened the PSO. Owing to PSO’s inability to make payments, international banks blocked the LCs opened by the company for oil imports worth Rs110 billion.
Earlier in the second week of December, PSO cautioned the government that it had failed to clear five LCs after delay in payments from oil purchasers, particularly power generation companies. The Petroleum Minister knew all this but failed to pursue the issue. Abbasi has put the blame on OGRA for failing to build adequate oil reserves despite the fact that the PML-N government itself had given two years to the Oil Marketing Companies to do the job. Instead of acting on time to help the PSO, the Finance Minister insisted that there should be fiscal discipline to control the circular debt.
The crisis is basically the outcome of a highly personalised style of governance. The Prime Minister insists on taking crucial decisions concerning all the ministries. These include key appointments which get delayed on account of his numerous engagements. Thus a permanent Managing Director of PSO has yet to be appointed. OGRA which has been held responsible for ignoring its regulatory duties is dysfunctional for the last many months because it has yet to have a Member Oil while its Member Finance is facing corruption charges. Lack of quorum stops the remaining two members which include Chairman and Member Gas from taking any major decision. Unless the malaise that afflicts the governance is dealt with, the country would continue to pass from one crisis to another.