Asad Umar presides over Economic Coordination Committee meeting

ISLAMABAD: A meeting of the Economic Coordination Committee (ECC) of the Cabinet has been underway with Finance Minister Asad Umar in chair.

The ECC is expected to take up an incentive package for oil and gas exploration and the situation of Pakistan State Oil (PSO), which is facing a challenge of over Rs 330 billion receivables.

The ECC would also be given briefing on the problems faced by PSO in meeting its local and international payment obligations in view of huge receivables now estimated to be close to Rs 340bn, which include more than Rs 290bn to power sector alone.

The ECC would also discuss approval of one month salary for the employees of Pakistan Steel Mills.

According to sources, the ECC would consider amendments to Petroleum Policy 2012 to create a fresh zone offering prospects of higher hydrocarbon finds and production.

In the ongoing policy, there are three zones for exploration, defined on the basis of risks and investment opportunities. Zone-I covers Western Balochistan, Pishin and Potohar, Zone-II comprises Kirthar, Eastern Balochistan, Punjab and Suleman basins while the Lower Indus Basin is titled as Zone-III.

The government now creating a new zone covering Kharan, Pishin and Fata which are unexplored yet with reports of hydrocarbons estimated to be over 20 trillion cubic feet (TCF).

According to sources, the Petroleum Division has proposed on the request of exploration companies to treat this new zone at par with offshore exploration by offering them $7 per mmBtu wellhead price.

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