Islamabad:
Pakistan has adopted an ‘open -handed policy’ to grant multimillionaire mining contracts, providing equal opportunities for global competitors, including the United States (USA), China and Russia.
China and Russia have long been archirival in the United States. At present, Pakistan is being involved simultaneously with the three countries.
The Petroleum Ministry has recently held a web seminar with US officials and companies, and offered them joint companies in mining contracts.
“We are offering equal opportunities to Russia, China and the United States (USA) to participate in the mining sector,” said the Minister of Petroleum, Ali Pervaiz Malik, to the media here on Thursday.
Pakistan is currently working on the Rekodiq Multibillion Rekodiq Gold and Mining Project, which will open roads for the investment of multiple countries such as the United States, China and Russia. He commented that Rekodiq would be a model to follow to attract investments in the mining sector.
Responding to a question, he ruled out the discrimination by granting the mining contract to any country.
“I have been in Russia and offered the Russian companies to invest in the mining sector of Pakistan,” he said, adding that any company in these countries can participate in an offer when offered.
Answering another question, he held the previous government responsible for signing the second LNG contract with Qatar.
“If the LNG contract had not been carried out, we may not face the current situation of non -compliance in the gasoline sector,” he said, added that the government would make the decision to review the LNG agreement with Qatar that is due in 2026, keeping the interests of the country in view.
There is a demand and supply problem in the country with respect to the LNG, “said Malik, added that 300 MMCFD of gas supply have been reduced due to LNG.
He made the energy division responsible for current circular debt and gas reduction problems, stating that the electricity sector is not prepared to lift the required gas supply.
In addition, Power’s division had taken the approval of the cabinet to reduce the guarantees of taking and payment for LNG, which made the electricity sector a key taxpayer to the problem. Take and salary guarantees have been reduced to 50% of 60%, which has bothered the oil division.
The Petroleum Minister declared that there should be a unified Ministry of Energy, and the oil division should be taken into account for any decision related to the energy sector.
Pakistan currently faces an excess of liquefied natural gas supply (LNG), a situation attributed largely to its second long -term agreement with Qatar. This agreement, initially provided for strengthening energy security, has led to an expensive LNG surplus within the country. The current government is now actively working to balance the demand and supply of energy of the nation.
The minister said that the expensive RLNG forced the government to suspend indigenous 300 MMCFD gas production, and is trying to administer the supply and demand side.
Responding to recently increased fixed gas charges, Malik said that the RS150 billion subsidy to protected gas consumers, in addition to the diversion of RS250 billion RLNG of power to national consumers forced the government to increase fixed charges for RS200, and added that the system gas was still cheaper than the LPG. “We are in an International Monetary Fund (IMF) program that wants a zero deficit,” he said.
In response to a question about the exemption of oil and gas from Iran, he said that the Ministerial Committee was working to make a decision in this regard.
He also added that Pakistan and Iran have been in arbitration in Paris on the Iran-Pakistan (IP) gas pipeline project, and a ministerial committee was reviewing the situation after the United Iranian war.
Regarding a resignation to China and India, the minister said they were not in an IMF program, while Pakistan is in an IMF program. “Therefore, we must be careful about whether we have to take an exemption or not,” said Malik, and added “we cannot go to non -compliance.”
On Iran’s oil imports, he said that the country still faces restrictions from the United States. “The Ministerial Committee has to make a decision about it,” he added.
When addressing the refinery update, he affirmed that the demands of the refineries were justified, and the taxes have been exempt in their production and their margins have regulated. “This is against the basic principle,” said Malik, added that an undue burden should not be put on refineries if the government wants them to invest $ 5- $ 6 billion in update projects. He said that the question of zero qualification was raised with the IMF, which declared that the “zero rate” would not be viable.
The Government had exempted the sales tax in the 2024-25 budget, which had resulted in the loss of 34 billion RS for refineries and the IMF. The Government had also committed to the imposition of sales on sales of up to 5% in the 2025-26 budget, but had continued zero ratings, supplying refineries, which has planned investments of $ 6 billion in the refining sector.
“I have done my best to solve the problems faced by refineries, and the Minister of Finance agreed to solve it,” added the minister.
With respect to the oil sector and exploration, he criticized the imposition of a 40% corporate tax on exploration companies, which was very high and would harm the government’s indigenization efforts on oil and gas exploration.
In response to a question related to the liquidation of foreign companies operations in Pakistan, he said that a Turkish company had participated in an offer held in April. In addition, he added that the company had also signed an agreement with the Limited Petroleum and Gas Development Company (OGDCL) to present a joint offer for high seas drilling in Pakistan.
On the JJVL operations of his LPG plant, he said that the SSGC was working on it and that it would begin operations after some time.
In the recent increase in oil prices, Malik clarified that the government had not increased oil tax in oil products.
