ISLAMABAD - The Council of Common Interests (CCI) has approved the Petroleum Division’s recommendation, allowing exploration and production companies with existing or expired licenses to search for new oil and gas reserves.
The CCI met with Caretaker Prime Minister Anwarul Haq Kakar in the chair here on Monday.
During the session, proposals for amendments to the Petroleum Policy 2012 were presented by the Petroleum Division to facilitate exploration and production activities.
It was informed that the country currently relies on 85% crude oil and 25% gas imports, impacting the national treasury due to the exchange of valuable reserves.
Additionally, there is a noticeable decline in the existing reserves of oil and gas. In light of the search for new reserves, the Petroleum Division proposed essential amendments to the Petroleum Policy 2012.
Furthermore, the CCI approved enhanced wellhead prices for companies exploring oil and gas in Petroleum Zone (F)1, covering the challenging border regions of Khyber Pakhtunkhwa and western Balochistan.
The difficulty of the terrain and lack of facilities in these areas make oil and gas exploration a costly and challenging operation.
In response to the Petroleum Division’s proposal, the CCI approved the extension of the economic life of the reserve until its complete exploitation.
Additionally, the council endorsed the Tight Gas (Tight Gas) Exploration and Production Policy 2024.
The Tight Gas Exploration and Production Policy 2024 provides details on pricing, extraction techniques, and the regulatory framework for the efficient utilisation of tight gas resources, known for high hydraulic pressure, expensive equipment, and technology requirements.
Approximately more than 35 trillion cubic feet of tight gas reserves are estimated in the country, making this a significant move in the energy sector.
In line with the Petroleum Division’s recommendation, the CCI increased the commercial sales rate of third-party natural gas from 10% to 35%, aiming to reduce the circulation debt of gas.
The session was attended by concerned federal ministers for finance, petroleum, law and justice, energy, chief ministers of all provinces, and relevant high-ranking government officials.
PM chairs NEC
Prime Minister Anwar-ul-Haq Kakar also chaired the National Economic Council meeting on Monday in Islamabad.
The meeting was attended by Federal Ministers Dr Shamsad Akhtar, Sami Saeed, Shahid Ashraf Tarar, Chief Justices (Retired) Maqbool Baqir and Syed Arshad Hussain Shah, Sardar Ali Mardan Dhomki, and other high officials.
The session provided detailed insights into the country’s overall economic situation.
“Tax revenue is the people’s money; hence, all developmental projects should revolve around public welfare,” emphasised the Prime Minister.
Accelerating the pace of work on major national development projects and ensuring their completion within defined timelines were highlighted as priorities by the Prime Minister.
The importance of enhancing infrastructure in transportation, development of hydroelectric and water reserves, agriculture, industry, and the progress of individuals, especially youth, with the inclusion of information technology, was underscored in the development budget by the Prime Minister’s directive.
The Prime Minister stated that the National Economic Council is the largest constitutional body in the country for economic decision-making, involving provinces and the federal government.
Emphasising consultation with provinces in decision-making for developmental projects, the Prime Minister highlighted the federal government’s commitment to achieving national developmental goals. Despite numerous economic challenges, the Prime Minister expressed satisfaction that the government’s focused efforts in projects prioritising public welfare could lead to national development.
According to PM office communique, the session discussed a 6-point agenda:
1. Approval of priorities and guiding principles for the national development budget for the fiscal year 2024-25. New guiding principles suggest allocating budget funds based on priority for projects where 80% of the work is completed, with only 10% reserved for new projects in the developmental budget.
2. Inclusion of newly integrated areas (former FATA) and 20 marginalized districts in the federal development budget, rather than provincial projects, for the upcoming fiscal year.
The Prime Minister directed a comprehensive assessment of the criteria for ranking marginalized districts to ensure their inclusion in the list.
3. Review of progress under the Federal PSDP (2023-24). The Apex Committee’s recommendation for special capital facilities was presented, focusing on ensuring adequate funding for the Prime Minister’s programs for youth development and talent scholarship.
4. Presentation of the 13th Five-Year Development Plan, focusing on various regions’ progress, environmental changes, tourism, agriculture, industry, energy, governance, foreign investment, facilitation of small and medium-sized businesses, improvement in governance procedures, and technology initiatives for service delivery.
5. Presentation of reports from Public Investment Management Assessment (PIMA) and Climate.
Recommendations from the reports were discussed, and the council directed practical measures to strengthen the country against adverse effects of climate change and natural disasters.
6. Evaluation of economic decimals for the current fiscal year: The meeting revealed that the initial three months witnessed a 2.1% overall economic growth, contributing to achieving the annual growth target of 3.5%. The Prime Minister expressed satisfaction with the tangible measures taken for economic recovery and instructed to expedite further actions.
Additionally, the council received a report from the sub-committee on Sustainable Development Goals (SDGs), emphasising the inclusion of projects in the national development budget that are progressing rapidly and prioritizing climate finance due to Pakistan being among the countries most affected by climate change.
The council also directed the collaboration of all provinces and federal entities for a Multi-sector Indicator Cluster Survey (MICS) to provide an accurate perspective on public welfare and economic development nationwide.