"The Council of Common Interests has already approved the new petroleum policy in principle, which now has been sent to provinces for formal approval. We will announce the new strategy within eight to 10 days after getting consent of provinces," official sources in the ministry told APP.

The sources admitted that there was some delay in announcing the new petroleum policy due to some problems between provinces and the federal government, adding "Under the 18th Constitutional Amendment, provinces own 50 per cent share and therefore the federal government cannot move ahead without their consent."

They said more incentives would be announced for local and foreign investors, which would help bring sufficient investment in oil and gas sector, giving a boost to exploration activities in the country.

"The Petroleum policy-2012 will prove to be a milestone for the oil and gas sector of Pakistan as it has been finalized in consultation with all stakeholders. It will address the problems of energy shortage," The sources said.

According to a report, success rate in oil and gas exploration in Pakistan is 'very high' as compared to discoveries at international level. There is a find after almost every three to four drillings, while at international level discovery comes after eight to ten attempts.

The sources said the government is working on to have more refineries in the country to process all types of crude oil, adding that the existing refineries refine low sulphur oil and the new ones would be required to process the Iraqi oil.