Transportation of additional POL products: ECC decides to use railways to reduce cost

The Economic Coordination Committee (ECC) of the Cabinet has decided that additional petroleum products to up-country would be transported through Pakistan Railways, instead of oil tankers, to reduce transportation cost by 20 percent and help the PR mobilise some revenue.
The ECC meeting chaired by PM's Adviser on Finance Dr Abdul Hafeez Shaikh was told if oil is transported through Pakistan Railways, it could improve its revenue and reduce losses. The oil transportation cost through PR is not only cheaper by Rs 5,000-6,000 against its transportation cost through oil tankers, but is also the safest mean that does not entail any threat of theft or wear and tear of roads. The ECC also directed that facilities of uploading/unloading should also be taken care of and established where needed.
Ministry of National Food Security and Research updated the committee about wheat stock position in the country. The meeting decided to convene a meeting of price monitoring committee on Tuesday to look into the issue of increase in prices of wheat and other food items and may also look into pros and cons of wheat export. Sources said that the meeting would take up the issue of smuggling and provinces would be asked to take effective measures to deal with the problem.
The ECC was briefed by Petroleum Division about the utilisation of railways services for transportation of petroleum products to upward country. In order to enhance supply of PSO products to Pakistan Railways, the committee directed the Petroleum Division to divert the surplus business to Pakistan Railways that offers the lowest freight charges as compared to other modes of transportation.
Giving presentation to ECC, the Ministry of Maritime Affairs emphasised on the urgency of establishment of third terminal at Port Qasim Authority (PQA) so as to meet the gas shortage in the country in the years ahead. In order to expedite the process of establishing of third LNG terminal, the committee approved the resolutions of the PQA Board by exempting the Authority from public tendering for appointment of legal consultant through negotiated tendering. The committee also approved the resolution of the board to allow amendment in PQA master plan to accommodate the prospective third LNG terminal. It may be recalled that the ECC in its decision in February 2019 had directed the Ministry of Maritime Affairs to expeditiously work on setting up of an additional LNG terminal.