OMAP Urges PM to Release Rs26 Billion for Forex Loss Compensation

ISLAMABAD – The Oil Marketing Association of Pakistan (OMAP) has formally requested the prime minister to release Rs26 billion to cover the industry’s losses due to inadequacies in the current foreign exchange gain/loss recovery mechanism.

Pending Concerns and Industry Losses

The OMAP emphasized that this issue has already been brought to the attention of the PM’s Office and has been pending for a significant time. The letter detailed that the industry has accumulated substantial unrecovered exchange losses amounting to Rs26 billion due to deficiencies in the existing recovery system.

Ministry’s Reluctance to Act

Despite acknowledging these flaws and the financial strain on companies, the Ministry of Energy (Petroleum Division) has been slow to address the matter, according to OMAP. The association pointed out that the ministry’s reluctance to act promptly has exacerbated the industry’s financial difficulties.

Steps Towards Resolution

To tackle this issue, the Director General (Oil) convened a meeting on April 8, after which the Ministry of Energy (Petroleum Division) developed a concept paper. This paper was forwarded to the Oil and Gas Regulatory Authority (OGRA) for feedback on April 22.