Senate devolution body agrees to abolish industry, energy ministries

• Senators recommend devolution of responsibility to provinces
• Raise concerns over hiring of over 2,000 employees at ‘closed’ PSM, creation of 70 new companies by petroleum division
• Power division official wants in-camera meeting to discuss implications of devolving ministry
ISLAMABAD: The Senate Functional Committee on Devolution at its meeting on Monday unanimously agreed to abolish the ministries of Industries and Production and Energy (petroleum division) and recommended to devolve their responsibilities to provinces.
The committee meeting, chaired by Senator Zarqa Suharwardy, says further recommendations on the distribution of responsibilities to provinces or the Council of Common Interests will be made subsequently.
During the briefing on the performance of the Ministry of Industries and Production over the last two financial years, the committee noted that the ministry had become a provincial subject. However, the additional secretary of the ministry of industries and production suggested that the ministry of law and justice could provide a more informed opinion on this matter.
The chairperson questioned the rationale behind investing in Pakistan Steel Mills. She inquired why PSM was closed while private steel mills were operational and selling their products successfully and earning profits.
She also asked why 2,200 employees were hired if the PSM was closed, to which the ministry responded that laying off 50 per cent of the workforce required the approval of the labour court.
The issue of privatising the Pakistan Steel Mills was also discussed and it was noted that a Chinese company had withdrawn its interest in acquiring the Pakistan Steel Mills.
The chairperson expressed concern over the PSM’s gas bill, which is Rs440 million. She highlighted the disparity between the general public’s gas shortages and the provision of gas to non-operational PSM. On this the officials concerned responded that the gas supply to the PSM had been discontinued.
Secretary of industries and production clarified that subsidies are provided to farmers and not to factories and industries.
The committee requested a report on the fertiliser factory’s sales and exports, specifically the quantity of urea sold and exported by 10 major fertiliser companies.
The committee was informed that the non-developmental budget for the ministry of industries and production stands at Rs62 billion. Senator Zarqa Taimur questioned the benefits to Pakistan and the allocation of Rs25 billion in urea subsidies.
The secretary explained that the subsidy is intended to address gas shortages, despite domestic consumers facing gas shortages. The committee requested detailed information on the companies and individuals receiving subsidies.
The committee also reviewed the performance of petroleum division over the past two financial years. Senator Zamir Hussain Ghumro expressed concern about the creation of 70 new companies, stating this was beyond the government authority. The committee requested details of the boards of these companies.
Senator Ghumro said that if issues persist, the prime minister may be called to address them. He noted that the petroleum division is managed by the Council of Common Interests and that all institutions listed in Federal Legislative List 2 fall under its administration.
Concerns were also raised about the board of SNGPL. The chairperson asked about Saindak Company’s operations and earnings. Petroleum division officials reported that a joint venture contract, which had expired, was renewed in 2021. They also mentioned that over $350 million had been received by Pakistan, with over $250 million paid to Chinese partners. The committee resolved to devolve the Ministry of Energy (petroleum division).
A representative from the power division requested an in-camera meeting to discuss details and implications of devolving the ministry.
Additionally, the committee observed that the secretary of inter-provincial coordination should brief on achievements in sports.
The chairperson criticised the lack of promotion and support for sports since Arshad Nadeem’s victory, noting that only selfies and financial rewards had been provided. The committee has requested a detailed report on measures taken to improve sports in the country.
Published in Dawn, August 20th, 2024