ISLAMABAD, April 23: The government has decided in principle to allow Fauji Oil Terminal Company (FOTCO) to set up $24 million new oil jetty at Port Qasim to meet increasing oil demand.

A formal decision would be taken on Thursday by the Economic Coordination Committee of the Cabinet. The ECC would be presided over by the finance minister.

The committee would also approve the establishment plan of second oil jetty at Port Qasim that would be developed on build, own and transfer (BOT) basis, official sources told Dawn.

The ECC is also expected to allow Admore Gas, a Karachi based company, to market petroleum products in the country as a licensed Oil Marketing Company (OMC).

The Central Board of Revenue, Securities and Exchange Commission of Pakistan and the ministry of petroleum have supported the proposal to give a licence to the company that would create further competition in the market.

This would be the 7th company to get an oil marketing licence. Bosicor, another Karachi based company, has so far been unable to start retail marketing of oil products despite having a valid licence because its refinery could not become operational.

Attock Oil Company and Pak-Arab Refinery (PARCO) are new entrants in the oil marketing business after the deregulation of petroleum sector. Earlier, Pakistan State Oil (PSO), Shell and Caltex had been in the market.

The petroleum ministry has informed the ECC that Admore fulfilled the necessary criteria for the setting up of OMC.

The ECC would also accord post-facto approval to the increase in the paid-up capital of State Life Insurance Corporation (SLIC) from Rs750 million to Rs900 million to meet regulations of the United Arab Emirates (UAE) government so that SLIC could operate in that country.