"Bonded Bulk Storage" Policy being introduced to end energy crisis: Minister

The federal government is set to introduce a bonded bulk storage policy for crude oil and petroleum products with the intention to end the energy crisis in the country, reported the 24NewsHDTV channel.

Addressing a press conference on Wednesday, the Minister of State for Petroleum Dr. Musadiq Malik said that this policy will help foreign suppliers to build bonded bulk storage at Pakistani ports.

He said the incumbent government is making all-out efforts to bring economic stability to put the country on the path of development.

Dr. Musadiq Malik said that under the policy, foreign suppliers will be allowed to procure crude and POL products from the international market and store them in bonded bulk storage in Pakistan ports.

“Simultaneously, the government has decided to allow government-owned and private, local, and international oil marketing companies to build go-downs for storing petroleum products including liquefied natural gas (LNG) and lubricant products for exporting them to other countries, he remarked, adding that

The minister said that foreign investors have to open their accounts in Pakistan, thus, the arrival of foreign companies will bring investment in the country.

Dr. Musadiq Malik said that after the introduction of bonded storage policy, the government would be able to purchase oil in rupees instead of dollars.

The Minister of State said we have ended the monopoly in the storage sector to improve the uninterrupted supply situation of petroleum products.

The minister explained that if Pakistan needs to procure crude or finished oil products from foreign suppliers, the country's customs department will de-bond the stored products.

This is how the oil products will be formally imported to Pakistan, he maintained. However, the policy, he said, will allow foreign suppliers to export the bonded products. If foreign suppliers use the country’s storage, they will pay for it.

However, the products stored in the bonded bulk storage will not be considered imported products unless these products are de-bonded by the customs department, he hinted.

The minister said that the policy will help reduce the LCs and freight charges to a reasonable level and maintain the oil supply chain all the time in the country as in the past, the supply chain got disturbed.

The minister apprised the media persons that a policy is being introduced to explore new gas reserves. “There will be bidding for the exploration of 16 to 24 wells of subsea gas shortly, he added.

Malik further held that the circular debt of the country's oil and gas wells has been reduced to zero.

The circular debt of LNG will also be reduced to zero soon, he concluded.