Pakistan's Dollar-Based Oil Pipeline Returns Spark Controversy

Stakeholders have raised serious objections to the proposed dollar-based guaranteed returns for a $432 million oil pipeline from Faisalabad to Peshawar, demanding rationalisation of incentives. The Frontier Works Organisation (FWO) seeks to recover the entire investment in four years, drawing comparisons to a "super IPP" due to its bulky demands and lack of policy precedent. Ogra is examining the justification for dollar-based returns and potential rationalisation of "ship or pay" allowances. This controversy could signal future pressure on Pakistan's foreign exchange reserves and the USD/PKR rate, potentially influencing local gold prices.

بحوالہ / Source: www.dawn.com