Finance Minister Senator Ishaq Dar on Monday assured the Managing Director Pakistan State Oil Company Limited Amjad Pervez Janjua that Finance Ministry would address the genuine concerns of the PSO in coordination with the Ministries of Petroleum and Natural Resources and Water and Power.

Finance Minister, Senator Ishaq Dar chaired a meeting to discuss issues related to Pakistan State Oil Company Limited at the Finance Ministry on Monday. Amjad Pervez Janjua, MD PSO gave a presentation on fuel supply and liquidity position of PSO. He informed the Finance Minister that due to summer season and Holy Month of Ramadan, there is a considerable increase in furnace oil demand from IPPs. Whereas payments are made to PSO are not keeping pace with the demand of furnace oil. He informed that the IPPs need to rationalise their demand and must work on long term planning for enhancing their stocks.

Finance Minister was further informed that during the month of July hydel power generation usually remains at the level of 6500MW. However, during this season the inflow in the dams is less than normal and due to this reason, currently 5200MW of electricity is being generated. This shortfall in hydel power generation has resulted in increased demand of furnace oil by IPPs. Finance Minister after having detailed briefing said that there is a need to revisit the whole cycle holistically and adopt a disciplined mechanism to take into affect the following measures: 1. The consumption of furnace oil by IPPs must be realistic corresponding to their power generation 2.  Rationalisation of payment to PSO for ensuring uninterrupted supply of furnace oil. 3. Natural gas should be used in order to decrease demand of furnace oil. 4. Steps should be taken in coordination with IRSA to ensure increased hydel power generation during the summer season.

Finance Minister said that the government has initiated work on multiple power generation projects and in the next few years, we will not only be able to meet our energy demand but the energy mix will also be balanced in order to save foreign exchange which is being spent on import of furnace oil. He added that our focus is on hydel, wind, coal and solar power generation which will be less expensive as compared to thermal power.  He said that we have to take a holistic approach to run the whole cycle in a disciplined way.

The Finance Minister assured the management of the PSO that their genuine concerns will be addressed by the Finance Ministry in coordination with the Ministries of Petroleum and Natural Resources and Water and Power.