Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi has informed the
Senate Standing Committee that the import of Liquefied Natural Gas (LNG) would save up to
$800 million per annum. Briefing the Senate Standing Committee on Petroleum and Natural
Resources here on Thursday, the minister said that the government would increase gas prices for
all the segments of economy excluding the domestic consumers especially lifeline consumers.
The committee meeting was chaired by Senator Mohammad Yousaf, Chairman Committee,
which was also attended by Secretary Petroleum, Abid Saeed, Managing Director (MD) Pakistan
State Oil (PSO) and other senior officials. The parliamentary panel snubbed the officials of
Federal Investigation Agency (FIA) for placing names of Managing Director (MD) and Deputy
Managing Director (DMD) of the country largest state-run oil marketing company - Pakistan
State Oil (PSO) - on Exit Control List (ECL) without any evidence.
Additional director FIA informed the committee that the agency had now approached the Interior
Ministry to remove the names of MD and DMD from the ECL as the investigation officer had
not found any evidence against these two top officials. He said that top nine officers of the PSO
were put on the ECL after the inquiry was initiated.
It was brought to the notice of Senate body that the name of MD PSO was placed on the ECL
without framing any charge of corruption after he took over charge as acting head of the PSO.
"We have no information about an inquiry initiated by the FIA," Shahid Khaqan Abbasi said,
adding that the FIA had harassed the top officials of the PSO without taking parent ministry into
confidence. He said that the FIA should have to inform the committee as well as the MD PSO
what crime was committed by him.
Abbasi also maintained that he had figures that gas theft had increased after the involvement of
the FIA. However, he added that the FIA officers had benefited from gas theft. "I know the FIA
who framed charges against me which were never proved even after eleven years and I was
quitted by court," Abbasi said.
Senators asked the FIA that what serious issues appeared in just six to seven weeks that the
probe was started. They expressed their resentment on un-preparedness of Additional Director
FIA and the item was withdrawn till the next meeting of the committee. The Federal Minister for
Petroleum ruled out that the Prime Minister had not rejected gas price hike and different options of passing on impact of raise were being worked out.
The minister said, "The Prime Minister wanted that the masses should not be burdened by gas
price increase. We are examining different options of passing gas prices increase on different
sectors except domestic," he added. He maintained that the ministry would take the matter of
article 158 of the constitution which gives first right of gas use to the producing province areas to
Council of Common Interest (CCI) for ''optimal use'' of gas.
"Power sector and CNG stations are operating in Sindh whereas power plants and fertilizer units
are shut down in Punjab province," he said, adding that provinces would also suffer of article
158. He said that priority order in gas allocation was not being followed as the country would
have to import 0.4 million tons urea due to closure of fertilizer units. He said that the government
would fetch US $600 to US $700 million by sale of 10 per cent shares of the OGDCL.
He further said that the government was working on two options of importing LNG-government
to government basis and through tender. He said that LNG would be a replacement fuel and
therefore, its price would be linked with oil in Pakistan. He further said that the government
would have to strike stable deal of long-term LNG contract for secured supply.
"I guarantee that the country would save US $300 million to US $800 million per annum by
using LNG in power plants," he said, adding that negotiations with Qatar and Malaysian firm
Petronas were going on for LNG supply. Secretary petroleum Abid Saeed told the committee
that ambiguity in appointment of acting MD PSO had been removed and the Prime Minister had
accorded approval. He maintained that the board of directors of PSO had been directed to
complete the process of appointing new MD by the end of December.
Member committee Abdul Nabi Bangash said that the FIA had harassed the MD PSO after
initiating inquiry soon after he took charge and his name was put on the ECL without any
evidence. Senators expressed their concerns regarding the damages due to delay in offloading
shipment from a ship tanker. MD PSO Amjad Janjua told the committee that it is a dispute
between the PSO and Pakistan National Shipping Corporation (PNSC) due to flawed contract
and it will be decided in the court that who is liable to pay the damages in the case. The meeting
was also told that currently the circular debt facing the PSO has exceeded Rs 200 billion due to
non-payment by a number of companies. The committee decided to call all defaulters in the next
meeting.
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