ISLAMABAD: The Senate Functional Committee on Devolution, in its meeting on Monday, unanimously decided to abolish the Ministries of Industries and Production and Energy (Petroleum Division), recommending that their responsibilities be devolved to the provinces.
Chaired by Senator Zarqa Suharwardy, the committee stated that further recommendations regarding the distribution of these responsibilities to the provinces or the Council of Common Interests (CCI) would be made in due course.
During a briefing on the Ministry of Industries and Production’s performance over the past two financial years, the committee observed that the ministry’s functions had effectively become a provincial matter. However, the Additional Secretary of the Ministry suggested that the Ministry of Law and Justice could provide a more informed opinion on this issue.
The chairperson questioned the rationale behind continued investments in Pakistan Steel Mills (PSM). She asked why PSM had been shut down while private steel mills remained operational and profitable. She also inquired about the employment of 2,200 workers despite the closure of PSM, to which the ministry responded that reducing the workforce by 50% required approval from the labor court.
The committee also discussed the potential privatization of PSM, noting that a Chinese company had withdrawn its interest in acquiring the mill. The chairperson raised concerns about PSM’s Rs440 million gas bill, highlighting the contrast between gas shortages faced by the general public and the provision of gas to a non-operational PSM. Officials responded that gas supply to PSM had already been discontinued.
The Secretary of Industries and Production clarified that subsidies were being provided to farmers, not factories or industries. The committee requested a report on the sales and exports of fertiliser factories, specifically the amount of urea sold and exported by the top 10 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 benefit to Pakistan and the allocation of Rs25 billion in urea subsidies. The Secretary explained that these subsidies were meant to address gas shortages, despite domestic consumers also facing gas shortages. The committee requested detailed information on the companies and individuals receiving these subsidies.
The committee also reviewed the performance of the Petroleum Division over the last two financial years. Senator Zamir Hussain Ghumro expressed concern over the creation of 70 new companies, stating that this exceeded government authority. The committee requested details about the boards of these companies.
Senator Ghumro mentioned that if issues persist, the Prime Minister might be called upon to address them. He noted that the Petroleum Division is managed by the Council of Common Interests and that all institutions listed under Federal Legislative List II fall within its jurisdiction.
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