From Business Correspondent
ISLAMABAD: For the first time in the history of the country, the government yesterday has drawn up a plan to take advantage of the fall in oil prices in the international market.
According to the documents obtained by Dunya News, preparations to purchase crude oil, petrol and high speed diesel have been completed and a summary to purchase of a certain quantity of oil at a fixed price for a specific period has been prepared. According to the documents, for the first time in the history of the country, a summary of hedging of petroleum products has been prepared and the Petroleum Division will submit the summary to the Economic Coordination Committee (ECC) for approval.
According to the summary, it is proposed to buy oil for one to two years in advance. The summary proposed to purchase 9 percent or 1.5 crore barrels of crude oil, petrol and high speed diesel annually in advance. The summary proposed to make Pakistan State Oil (PSO) a counter party for hedging of petroleum products and the Ministry of Finance will approve the performance guarantee of the PSO.
It is also proposed to set up a committee headed by the Finance Secretary to finalize hedging issues with specific banks.