The government has announced that 1.5 billion worth of oil is available from Saudi Arabia annually.
In a joint press conference with Energy Minister Hamad Azhar, Dr. Waqar Masood, Special Assistant to the Prime Minister for Revenue and Finance, said that Saudi Arabia has announced an annual supply of 1.5 billion in oil on deferred payments.
However, he declined to comment further on the details of the oil facility and the reasons for the reduction in the 3 3 billion deal struck three years ago.
The agreement could not be implemented due to a rift in bilateral relations between the two countries.
The Special Assistant said that the government has made a very realistic estimate regarding the collection of petroleum levy of Rs. 610 billion during the next financial year, yet some critics are claiming that it is unrealistic to increase the levy from 4 to 5 per cent. Rs 25 per liter will be increased.
He said that the government has kept the prices of petroleum products stable for four months even though the prices in the international markets have increased significantly.
Dr. Waqar Masood said, “We have set our targets based on the potential and expected growth of this sector. There may be some difficulties at the beginning of the next financial year but going forward it will be reduced.
He said lifting sanctions on Iran would help boost oil production, which would have a positive effect on prices.
He added that the revenue estimate is also realistic and there are 25 other deadlines that were not taken into account in preparing the budget for the next financial year.
He said the government had targeted privatization of LNG-powered power plants only but many other transactions would be completed in the next financial year, including the renewal of fifth generation telecommunication licenses and existing licenses.
