KARACHI: Pakistan’s oil industry has urged the government to provide a cost recovery mechanism to support the digitisation and modernisation of the downstream sector, which is expected to cost more than Rs50 billion. The investment will be used to upgrade over 11,000 retail outlets nationwide with digital dispensers, QR codes, mobile payment options, and automated tank gauging systems.
In a letter to the Oil and Gas Regulatory Authority (Ogra), the Oil Companies Advisory Council (OCAC) highlighted that while the industry is aligned with the government’s vision, the initiative is long-term and capital-intensive. “It is imperative that Ogra issues clear guidelines, technical specifications, and a cost recovery framework to ensure successful implementation,” the council said.
The industry has already completed the first phase of digitisation by developing the Raahguzar mobile app for Ogra and the FBR. The second phase, involving integration of nozzle sales and underground tank gauges, is under way. So far, 1,500 outlets have been digitised, but the majority remain to be upgraded, with costs of up to Rs7.5 million per site.
Calling the project a “national initiative,” OCAC stressed that regulatory clarity and financial relief are essential for timely and effective execution.
Story by Tanveer Malik
