ISLAMABAD: The Senate Functional Committee on Devolution met on Monday and unanimously agreed to recommend the abolition of the Ministries of Industries and Production and Energy (Petroleum Division), proposing that their responsibilities be transferred to the provinces.
Chaired by Senator Zarqa Suharwardy, the committee indicated that further recommendations on the distribution of these responsibilities to provinces or the Council of Common Interests would follow.
During the meeting, which reviewed the performance of the Ministry of Industries and Production over the last two financial years, it was noted that the ministry had effectively become a provincial issue. However, the additional secretary of the ministry suggested seeking further legal opinions from the Ministry of Law and Justice.
Senator Suharwardy questioned the rationale behind the investment in Pakistan Steel Mills (PSM), pointing out that private steel mills remain operational and profitable while PSM has been closed. She also queried why 2,200 employees were hired despite the closure of PSM. The ministry responded that terminating 50% of the workforce required labor court approval.
The privatization of PSM was also discussed, revealing that a Chinese company had withdrawn its interest in acquiring the mill. Concerns were raised over PSM’s gas bill of Rs440 million, especially in light of gas shortages faced by the general public. Officials stated that gas supply to PSM had been discontinued.
The Secretary of Industries and Production clarified that subsidies are provided to farmers, not factories. The committee requested a report on fertilizer factory sales and exports, specifically the urea sold and exported by the top 10 fertilizer companies.
It was noted that the non-developmental budget for the Ministry of Industries and Production is Rs62 billion. Senator Zarqa Taimur questioned the benefits of this budget and the Rs25 billion allocated for urea subsidies, despite domestic gas shortages. Detailed information on the companies and individuals receiving these subsidies was requested.
The committee also reviewed the performance of the Petroleum Division over the past two years. Senator Zamir Hussain Ghumro raised concerns about the creation of 70 new companies, questioning their legality. Details about the boards of these companies were requested. He also noted that if issues persist, the prime minister might be called to address them. The committee resolved to recommend devolving the Ministry of Energy (Petroleum Division).
Concerns were also voiced about the board of SNGPL and Saindak Company’s operations and earnings. Officials reported that a joint venture contract with Saindak Company had been renewed in 2021, with Pakistan receiving over $350 million and paying more than $250 million to Chinese partners.
A representative from the Power Division requested an in-camera meeting to discuss the implications of devolving the ministry. Additionally, the committee noted that the Secretary of Inter-Provincial Coordination should provide an update on sports achievements.
Senator Suharwardy criticized the lack of promotion and support for sports since Arshad Nadeem’s victory, highlighting that only selfies and financial rewards had been given. The committee requested a detailed report on measures taken to enhance sports in the country.
