OMAP urges PM to help resolve exchange loss issue

KARACHI: The Oil Marketing Association of Pakistan (OMAP) has appealed to Prime Minister Shehbaz Sharif to intervene and finalize a mechanism to recover exchange rate losses incurred by the industry.

In a letter to the prime minister, Chairperson of OMAP Tariq Wazir Ali highlighted the ongoing issue of unrecovered exchange losses due to flaws in the current system. These losses, he claimed, have accumulated to a significant amount, reaching Rs26 billion.

OMAP criticized the Ministry of Energy (Petroleum Division) for failing to address the issue despite acknowledging the financial burden it places on the industry. The letter underscored past efforts to find a solution, including meetings with relevant authorities and feedback provided by the Oil and Gas Regulatory Authority (Ogra) on the ministry’s proposed recovery mechanism. It also mentioned the PM Office’s earlier directive for a swift resolution.

With concerns about the industry’s vulnerability to further losses if exchange rates fluctuate, OMAP requested the prime minister’s immediate intervention to finalize the proposed recovery mechanism. It emphasized the urgency of safeguarding the petroleum industry and ensuring its continued contribution to the national economy.