OMAP proposes specialized unit to aid OMCs in Pakistan

The Oil Marketing Association of Pakistan (OMAP) has put forward a proposal to establish a specialized unit within the Special Investment Facilitation Council (SIFC) to tackle the challenges encountered by Oil Marketing Companies (OMCs) and local investors in the country's petroleum sector.

The primary objective of this proposed unit is to streamline bureaucratic procedures, advocate for progressive and investor-friendly policies, and ensure a fair balance between foreign and domestic investment endeavors. It aims to foster close collaboration with the Oil and Gas Regulatory Authority (OGRA) and emerging OMCs to instill confidence among local investors in the industry.

OMAP Chairman Tariq Wazir Ali stressed the necessity of creating a conducive business environment for local investors who have already made significant investments and are eager to expand further. OMCs are grappling with challenges stemming from entrenched bureaucratic practices and policies of past administrations, impeding their operational efficiency and prompting a reassessment of future investment plans.

One of the key concerns raised is the current operational bias of OGRA towards a select few large OMCs, which stifles competition and places emerging OMCs at a disadvantage. Issues such as foreign exchange losses adjustment, smuggling of Iranian diesel, high business costs, lack of OGRA's advocacy for emerging OMC-friendly policies, and absence of a level playing field have been highlighted.

Despite efforts, OGRA has been criticized for failing to propose and advocate for equitable policies that support a level playing field for all OMCs. OMAP plays a crucial role in shaping and championing the interests of the oil marketing industry, aiming to boost operational efficiency and attract new local and foreign investments.

Concerns have been raised regarding OGRA's move towards deregulating petroleum product prices without comprehensive stakeholder engagement or considering broader impacts on the economy and employment. Tariq Wazir Ali underscored the vast growth potential in Pakistan's petroleum sector if local enterprises are granted a fair playing field, expedited regulatory approvals, and supportive fiscal policies.