ECC to approve new investment criteria for OMCs

Pakistan’s Economic Coordination Committee of the Cabinet (ECC) is set to approve new investment criteria for establishing a new oil marketing company (OMC) by reducing the equity investment to Rs500 million (US$5.96 million), with minimum upfront equity of Rs100 million (US$1.2 million), to attract investments in the oil industry. At present, investors are required to invest Rs6 billion (US$71.51 million) or more, over a period of three years, with a minimum upfront equity of Rs3 billion (US$35.75 million), based on the criterion of 60-40 debt/equity. (April 19, 2010)