Inside Financial Markets


– Sanie Khan

This Oil crises enquiry report asks for the sacking of incompetent OGRA officials and suspension of operations of key listed companies at the Stock Exchange.

June Oil Crises was instigated at the behest of Oil Marketing Companies and was a result of connivance of Government Officials and entire supply chain.

Banning operations of BYCO, conducting audit of NEPRA, PEMRA and unmounting OGRA are amongst the main recommendations of the Oil Crises Enquiry Report.

Despite the promulgation of OGRA Ordinance in 2002, the rules were not made for about fifteen years and OGRA affairs were run and managed through SROs. This is typical of Pakistan, where looting and plundering always takes place in such a grey period.

The report states that Oil Marketing Companies did not fulfill the requirement to maintain the inventory for twenty days and OGRA official are incapable of verifying the authenticity of inventory information which has been submitted by the Oil Marketing Companies.

The Government officials plagued PSO for losses worth billions of rupees. Pakistani refineries were left out with plenty of stock and blatant foibles were casted by putting a ban over the import of oil. It was the height of incompetent dealing of affair between the Dec-2019 and March-2020 period which actually led to a paucity of oil in June 2020.

It would be gruesome act to dislodge the DG Oil without unearthing the main beneficiaries of the scam and covering the names of unlicensed importers of oil. This report highlights yet another typical of Pakistan where inapt and unqualified persons are made to sit at the key positions with a view to protect and safeguard the interests of undisclosed

beneficiaries. The fact that DG Oil is a veterinary doctor is yet another reminder of the case of a Deputy Managing Director of a Financial Institution who was just a BS graduate in Zoology. This report underpins aged qualities of Dr. Ishrat to handle and maneuver such irritant which take away the credibility of the whole system.

Over 2100 retail outlets without having requisite-storage-capacity is a glaring evidence of the fact that dozens of OMC licenses had been extended without observing rules and regulations.

The harsh fact that this report did not highlighted is about the discretionary powers of the government to increase or decrease levies and taxes which actually causes huge dent over the economy as the imposition of such levies is always politically motivated.

This report also highlighted that BYCO imported 0.55-million-barrel Iranian crude oil. Fallacy of the fact is that Customs only checked it after social media hype and BYCO knocked the door of the Sindh High Court where the case is pending. The Report suggests that the reported smuggling is only 20% and the loss to the national exchequer could be tantamount to over two hundred billion of Rupees.

We are of the view that in the wake of games which are being orchestrated all across middle-east, the case of Iranian oil import has a potential fall-out on the FATF next meeting and Israeli’s will to make Pakistani regime act accordingly. This would have been more appropriate, had this case not been made part of report and discussed in the name of “low quality cheap oil”

This report also names HASCOL and negatively hails the Veterinary Doctors’ will to promote the supply of health-injurious fuel to masses in great abundance.

Syed Zaki Hussain

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The Canadian Securities Institute


CSI is part of Moody's Analytics Learning Solutions, which offers educational programs and credentials throughout the world.

Email Newsletter

Subscribe to receive inspiration, news, and ideas in your inbox.

Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)