December 20, 2002	Friday	Shawwal 15, 1423

ISLAMABAD, Dec 19: Petroleum Minister Nauraiz Shakoor on Thursday held out a firm assurance to the investors on continuing with the policies of restructuring and reforms in the petroleum sector aimed at minimizing government interference.

“Our Government is committed to ensuring continuity of the policies of restructuring and reform in the petroleum sector, so efficiently undertaken by the previous government,” he told an international workshop here.

These policies, he stated, targeted at improving energy availability, accessibility and affordability.

“Restructuring and Reform in Oil and Gas Sectors Consultation Workshop with Stakeholders” was organized by the Petroleum Ministry in collaboration with the World Bank.

Shakoor said the government would facilitate the local and foreign private investment and reduce red-tape and modernize governance.

The government, he said, would restrict itself to formulating policies and to the role of coordinator and facilitator.

“We fully believe that the government has no business to do business”.

“We will, therefore, continue on the path of privatization with the objective of improving efficiency, enhancing productivity and increasing returns,” the minister added.

The policies would aim at reducing country’s import dependence in energy by increasing indigenous production of hydrocarbons and by developing vast coal resources as substitute for imported oil.

The Petroleum Minister said that as a result of the policies of giving reasonable producer prices for natural gas, the exploration for gas has become an attractive proposition in Pakistan. “This has manifested itself in the unprecedented increase in gas production during 2001 to 2003,” he added.

But at the same time, he said, Pakistan would pursue and promote options of gas imports from Central Asia and the Middle East and support their onward transmission to the energy starved economies further East.

“Our government remains committed to improving the local, regional, as well as global environment from the ill effects of energy use,” said the minister.

Shakoor said despite the fact that the country per capita consumption of energy was low and energy resources comparatively very clean — like gas and hydro-electricity — the government will endeavour to promote further environment-friendly options like CNG as motor fuel and LPG as domestic fuel. The government, he said, was considering to formulate a national policy, with the consensus of all stakeholders, for phased introduction of cleaner liquid fuels and high efficiency technologies, in accordance with international norms.

In his concluding remarks the adviser to prime minister on finance and economic affairs, Shaukat Aziz said the government of Prime Minister, Mir Zafarullah Khan Jamali is committed to growth and reforms and wants to redouble efforts to improve investment and alleviate poverty.

Shaukat Aziz said Pakistan’s economy has made significant progress over the last three years, adding, “we have restored economic stability, acquired high credibility for our reform programmes, succeeded in harnessing important resources at home and abroad and have put into motion a broad participative process towards growth of economy.”

While taking charge of the state of affairs some three years ago, he said, “we were clear in our mind that Pakistan’s economic challenges are structural in nature and the objectives of sustaining high growth, low inflation, and external payments viability cannot be achieved without removing structural bottlenecks.

“It is with this in view that we launched a series of structural reform measures that include; tax reform; trade and tariff reform; deregulation of prices across important sectors, particularly in energy and agriculture; financial and capital market reform; transparency in fiscal operation, improving governance; and launched a credible programme of poverty reduction,” he added.

Addressing the workshop, Secretary, Petroleum, Abdullah Yousaf said an increase in indigenous production would help Pakistan fully meet its demand of 3,100 million cubit feet (mcf) of gas per day by end of the next year.

“The current gas supply stands at about 2,600 mcf a day with a deficit of 500 mcf which will be fully met with increased indigenous production by December, 2003,” he said.

The Secretary said a total of 25 companies, including four local enterprises, were engaged in oil and gas exploration and production.

About 42 trillion cubic feet (TCF) of gas reserves have so far been discovered in Pakistan which are producing 15 tcf of gas annually. Up to 27 tcf of gas reserves were yet to be exploited, he added.—APP