More than Rs1.95 billion remains unused with provinces; committee seeks transparent utilization and comprehensive report
Islamabad (Izhar Khan Niazi)
The 14th meeting of the National Assembly Standing Committee on Petroleum was held on Tuesday at the Parliament House, Islamabad, under the chairmanship of Chairman Syed Mustafa Mehmood. After confirmation of the proceedings of the previous meeting, the committee reviewed the implementation status of earlier recommendations.
During the meeting, members raised several questions regarding the utilization of the Petroleum Training Fund, the funds deposited by exploration and production companies for provincial shares, the use of these funds by provincial energy departments, and expenditures made for the welfare of local communities.
Officials from the Petroleum Division and provincial governments informed the committee that more than Rs1.95 billion of the Petroleum Training Fund is currently lying unused with the provinces.
The committee was informed that the Sindh Energy Department received Rs1.032 billion, Punjab Energy Department received Rs334.39 million, Khyber Pakhtunkhwa Energy Department received Rs202.28 million, and the Balochistan Energy Department received Rs530.76 million under the fund.
It was revealed that in Khyber Pakhtunkhwa, only Rs11.2 million was spent on providing technical training courses to deserving students from District Karak, while Balochistan utilized only Rs8.41 million for capacity building of employees. No funds were utilized for the welfare of local communities in the province.
After detailed discussion, the committee directed that a separate meeting be convened regarding the Petroleum Training Fund. The committee instructed the Petroleum Division to present a comprehensive report in the next meeting, covering the current status of the fund, its utilization, outstanding payments from companies, and rules governing its use.
The committee also sought proposed policy guidelines related to the exploration and production fund.
Members emphasized that the training fund should be utilized with complete transparency for the welfare and development of local communities in areas where petroleum exploration and production activities are underway.
The committee also sought district-wise details and a complete report on expenditures made for local community development as well as other purposes.
During the meeting, the Petroleum Division also briefed the committee on the issue of Unaccounted-for Gas (UFG), following which the committee recommended holding a separate session for a detailed review of the matter.
The Federal Minister for Petroleum also briefed the committee regarding petroleum product prices, Liquefied Petroleum Gas (LPG), and Regasified Liquefied Natural Gas (RLNG).
The committee recommended holding a separate meeting to review the mechanism for determining petroleum product prices, fulfillment of legal requirements, and public hearings conducted by the Oil and Gas Regulatory Authority (OGRA). A detailed report on the matter was also sought in the upcoming meeting.
Members of the National Assembly including Sardar Ghulam Abbas, Muhammad Bilal Badr, Shaista Khan, Mian Khan Bugti, Syed Naveed Qamar, Asad Alam Niazi, Salahuddin Junejo, Muhammad Moeen Aamir Pirzada and Gul Asghar Khan attended the meeting.
Senior officials from the Petroleum Division, Sui Northern Gas Pipelines Limited (SNGPL), Pakistan LNG Limited, Sui Southern Gas Company (SSGC), Directorate General of Petroleum Concessions (DGPC), Oil and Gas Regulatory Authority (OGRA), and energy departments of all four provinces also participated in the meeting.