INTERVIEW WITH ABDUL SAMI KHAN, CHAIRMAN PAKISTAN PETROLEUM DEALERS ASSOCIATION

KHALIL AHMED
(feedback@pgeconomist.com)

Feb 6 - 12, 20
12

For last four decades, Abdul Sami Khan has been attached with the petroleum trade and business and devoted himself for the betterment and growth of the industry as well for the welfare of the stakeholders of this industry. Appreciating and acknowledging his sincere efforts for it, he has been rewarded with in the shape of Chairmanship of Pakistan Petroleum Dealers Association and for last 30 years he has been serving the cause of dealers successfully. From the very beginning of CNG, he has been elected Chairman of CNG Dealers Association as well and till this date performing his duties with great success and satisfaction. In addition to that, he is nominated as Chairman of FPCCI Standing Committee on Oil and Gas regularly. As he has always remained interested in social activities and politics, therefore he was elected, in the past, MPA Sindh as well. He held the post of Vice President of Karachi Chambers of Commerce & Industry and Treasurer of Karachi Gymkhana. He also worked as Administrator of PECHS. He is also member of Executive Committee of Aligarh Old Boys Association.

PAGE: YOUR VIEWS ABOUT OIL AND GAS SECTOR OF PAKISTAN.

ABDUL SAMI KHAN: The location of Pakistan at the crossroads of Central Asia and Arabian Sea has brought it into spotlight. It has gotten significance as an attractive market and a regional route for energy. Oil and gas are two of the major components of the energy mix. The country is facing a serious challenge of energy deficit, while experiencing rapid growth in energy demand. Discoveries in gas and oil are not encouraging and satisfactory. The country is one of the largest consumers of gas in the region. It has a well developed and integrated infrastructure for oil and gas. Presently, two most important regional pipeline projects that are being planned include Iran-Pakistan Gas pipeline and Turkmenistan-Afghanistan-Pakistan-India pipeline projects. Currently, seven refineries are operating in the country. The country is now the largest CNG user in the world. There are 3330 CNG stations operating, serving 2.7 million vehicles, in the country. Additionally, it also has 7th largest coal reserves and it is of the finest quality coal.

PAGE: HOW WOULD YOU COMMENT ON THE CURRENT INCREASE IN INTERNATIONAL OIL PRICES?

ABDUL SAMI KHAN: It is badly affecting the economy of our country. It is expected that in 2012 oil prices in the world market would be at their highest peak i.e. $150/per barrel and the countries like Pakistan would find it very difficult to survive due to this price hike.

PAGE: IT IS BEING SAID THAT THERE IS HUGE POTENTIAL FOR INVESTMENTS IN THE OIL SECTOR AND THE DEMAND IS ALSO EXPECTED TO GROW. YOUR VIEWS.

ABDUL SAMI KHAN: Yes, there is huge potential for investment in oil sector. The location of Pakistan has given it significance and attractive market. Government is formulating very attractive policies for the investors and the rapid growth in energy demand is increasing the import oil bill every moment. Undoubtedly, there is huge potential for investments in oil sector.

PAGE: YOUR VIEWS ON THE TARIFF ON OIL SECTOR.

ABDUL SAMI KHAN: In comparison to its international prices, the oil tariff in Pakistan is somewhat at higher level, which is only due to the inclusion of petroleum development charges, which should be abolished at once.

PAGE: HOW WOULD YOU COMMENT ON THE OIL CONSUMPTION IN THE RURAL AREAS?

ABDUL SAMI KHAN: The cultivation in rural area should be done mechanically, so that the production may increase. At present, a little percent of cultivation is utilized on mechanical system. Basically, Pakistan is an agricultural country so why not more and more benefit should be achieved through mechanical means. It will obviously increase oil consumption as well.