Senate Panel Criticizes Petroleum Price Hike and Energy Sector Irregularities


Islamabad: A Senate panel has raised serious concerns over the recent increase in petroleum prices, the cancellation of a major gas project, and significant irregularities in the energy sector, including the non-recovery of Rs. 1.282 billion in the 765kV Dasu-Islamabad Transmission line project. The Senate Standing Committee on Economic Affairs convened at the Parliament House under Senator Saifullah Abro’s leadership to assess ongoing and completed projects in the petroleum and gas sectors and the implementation of prior recommendations related to power sector projects.



According to the Senate of Pakistan, the meeting was attended by Senators Syed Waqar Mehdi, Haji Hidayatullah Khan, and Rubina Khalid, with Senator Jan Muhammad as a special invitee. Key officials, including the Secretary of the Economic Affairs Division, Special Secretaries of the Petroleum and Power Divisions, and the Managing Director of Sui Southern Gas Company Limited (SSGCL), were present. The Committee questioned the rationale behind the petroleum price hike, given existing stock levels, and directed the Petroleum Division to provide detailed information on Oil Marketing Companies and a rate analysis of recent oil prices.



The panel also scrutinized the cancellation of a $200 million Natural Gas Efficiency Project loan due to lack of progress. Concerns were voiced about the non-utilization of the loan, and the Committee requested a comprehensive report to determine accountability for inefficiencies. Additionally, delays in the World Bank-funded Electricity Distribution Efficiency Improvement Project were highlighted, with the Committee emphasizing the need for merit and efficiency in procurement processes.



The Committee reviewed the status of recovering an irregular payment of Rs. 1.282 billion related to the 765kV Islamabad West Grid Station project. It expressed dissatisfaction with the delayed recovery and set a deadline for resolution, warning of potential escalation to the National Accountability Bureau if unresolved.



In the education sector, updates were provided on the ASPIRE project, which aims to improve education in lagging districts with PKR 24 billion in federal funding. Concerns were raised about the School Management Committees’ non-technical composition in Punjab, with directives issued to ensure the safety of students through technically sound classroom construction. The Committee also stressed the importance of representation from all provinces, noting the absence of a representative from Balochistan.



Overall, the Senate panel’s discussions reflected ongoing concerns about oversight and accountability in Pakistan’s energy and education sectors.

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