Prime Minister Shehbaz Sharif has approved $10 to $14 billion worth of oil refinery in Pakistan, junior petroleum minister Musadik Malik said on Friday.
“Pakistan had been working for this for long,” he said at a press conference in Islamabad. The media briefing was held after the meeting of the Cabinet Committee on Energy earlier in the day.
The energy-crunch country has been looking out for avenues to meet its demand amid the rising population and rising cost of international oil prices. Malik, who is the minister of state for foreign affairs, visited Russia in November last year to get cheap Russian oil.
Next month, he announced that the energy-rich country has agreed to provide crude oil, petrol, and diesel to Pakistan, in principle, at discounted rates. He also spoke about Pakistan’s efforts to reach out Central Asian countries with the similar purpose.
Prime Minister Shehbaz Sharif said on Thursday that everything was set for his country to receive a shipment of discounted Russian oil. Moreover, Malik told Reuters last week that Pakistan had made its first purchase of discounted Russian crude.
The state minister before making the announcement on Friday quoted the premier’s statement on the Russian oil. He was of the view that a two per cent increase was needed if the country has to have 1% economic progress.
“Pakistan will get Russian oil and it will decrease oil rates and there will be a solution to lack of power generation. Today in the meeting of the Cabinet Committee on Power, the PM approved $10-14 billion worth of refinery. The policy was approved today.”
The committee has approved the investment package and finalised the comprehensive energy conservation policy. It was one of the three decisions taken during the meeting.
The government has decided to stop providing gas to power generators, which produced expensive electricity by getting gas at cheap rates. He clarified that the supply of gas to factories has not been suspended.
“In the coming times, like this 30mmcfd, or 40mmcfd or 50mmcfd which makes up to five million houses will be given this gas,” Malik said.
He informed that a policy has been made under which all new buildings in Karachi and Lahore would have gas systems—an issue according to the minister was prevalent in the two big cities.
“All these housing schemes where there is much need of gas will have LPG, LNG, and solar,” the minister said and added that the private sector would also be approached.
The PM Shehbaz-led government has opened the market for the intended investors who want to provide fuel to the new housing societies. Malik was of the view that open bidding or competition would let the prices decrease. Even if someone wanted to install solar at their rooftop and wanted to distribute the electricity, they are allowed for that, he added.
The approved policy would also set standards for geyser and bulbs—a need the government had shared when they shared the energy conservation plan.
“On one side we are increasing reserves via Russian oil, refinery and taking back gas from the rich and secondly we are bringing a conservation culture. This is the future of our children the energy wasted could be used in production which can increase livelihoods. The $10 billion to $14 billion investment will give birth to a new city,” he said.
