- Miftah warns towards making “hasty selections with out correct evaluation”.
- Says sugar mills might enter sector rapidly if ethanol proves viable.
- Expresses doubts about fast rollout as a consequence of infrastructure points.
ISLAMABAD: Former finance minister and Awaam Pakistan Occasion (APP) chief Miftah Ismail has urged a cautious, totally researched method to Pakistan’s ethanol mixing coverage to cut back oil costs.
“It is at all times good to have a look and consider issues, however one ought to be cautious in altering coverage,” he stated whereas talking to The Information.
Miftah cautioned towards making “hasty” selections with out correct evaluation, including that exploring the feasibility of ethanol mixing is cheap, however any coverage changes ought to be thought of fastidiously.
He famous that if ethanol manufacturing proves commercially viable, sugar mills would naturally transfer into the sector. “They may get yet one more market and hope the worth of ethanol will improve,” he added.
Discussing the doable influence on oil advertising firms, Miftah stated outcomes would rely largely on authorities coverage. If companies are mandated to mix a set share, comparable to 10% ethanol, and given a set worth, many might procure ethanol at decrease charges and retain the margin as revenue.
The previous finance minister instructed that the Ministry of Petroleum, in collaboration with Pakistan State Oil and representatives of the sugar trade, might rapidly conduct a fundamental evaluation. “This may be studied inside a few days, after which choices will be labored out,” he stated.
Nonetheless, he expressed reservations about fast implementation, citing sensible challenges comparable to mixing mechanisms, required infrastructure, and timelines. “I don’t suppose it will likely be possible and implementable instantly,” he remarked.
Miftah linked the financial viability of ethanol mixing to world oil costs, saying it turns into enticing when Brent crude oil trades above $100 per barrel.
“At regular oil costs of $60 to $80, ethanol is usually not economically viable,” he defined.
Drawing comparisons, he identified that Brazil has an enormous sugarcane and ethanol trade the place sugar is commonly a byproduct, whereas america helps ethanol manufacturing by means of large-scale corn farming and coverage mandates.
Whereas acknowledging that present petrol costs in Pakistan might make ethanol mixing seem financially possible, he cautioned that operational and logistical constraints could restrict its practicality within the brief time period.
