Federal govt approves oil reserves discovery policy for petroleum sector

ISLAMABAD: The federal government has approved the policy amendments for the discovery of oil reserves which provide a major relief to the investment companies in the petroleum sector.

According to the statement, the federal government under the leadership of Prime Minister Imran Khan continues its steps for creating ease of doing businesses as the investment companies in the petroleum sector get big relief after the approval of policy amendments.

The statement said, the policy amendments recommended by the PM’s Task Force on Energy were approved by the federal authorities which end authoritative pressure on the companies for not complying the deadline of the development work.

Under the new law, a company can get a two-year extension in work licence by filing a formal request to the government for the continuation of the discovery of oil reserves.

Moreover, the companies that received 25-year lease were also benefitted by allowing them to acquire a further five-year extension in its contracts. The decision was taken in view of increasing commercial production and the continuity of the discovery of oil reserves in the country.

Earlier in October last year, Federal Minister for Economic Affairs, Hammad Azhar had expressed resolve to further improve Pakistan’s ranking on the ease of doing business index.

Azhar in a tweet revealed how Pakistan had suffered a steep fall during the previous government’s tenure falling 26 ranks on the index.

The tweet read: “During PMLN’s 5 years, Pakistan’s ease of doing business ranking took a steep fall from 110 to 136. During PTI’s first year, we reversed all that damage and recovered to 108. With many more measures underway we expect further improvements in next years ranking too IA.”

Pakistan climbed 28 ranks on the World Bank’s Ease of Doing Business Index 2020 to gain the 108th position, the country also secured a place among top ten global business climate reformers.

Pakistan ranking 136 previously, carried out reforms in the last one year that helped improving its ranking to 108, the World Bank’s “Ease of Doing Business 2020”, annual report released on Thursday quoted as saying.