Press Release Title: Senator Saifullah Abro, Chairman Senate Standing Committee on Economic Affairs presiding over a meeting of the committee at Parliament House Islamabad.

Press Release Date: 9th March, 2026

‎Senate Panel Questions Petroleum Price Hike, Voices Concern Over Cancelled Gas Project, Massive Irregularities in Energy Sector and non-recovery of Rs. 1.282 billion in 765kV Dasu - Islamabad Transmission line Project. ‎‎ ‎The Senate Standing Committee on Economic Affairs met at Parliament House under the chairmanship of Senator Saifullah Abro to review ongoing and completed projects in the petroleum and gas sector, education initiatives supported by multilateral and bilateral partners, and the implementation status of the Committee’s recommendations regarding power sector projects. ‎ The meeting was attended by Senator Syed Waqar Mehdi, Senator Haji Hidayatullah Khan, Senator Rubina Khalid, while Senator Jan Muhammad participated as a special invitee. ‎ The Secretary, Economic Affairs Division, Special Secretary Petroleum Division, Special Secretary Power Division, and the Managing Director of Sui Southern Gas Company Limited (SSGCL) were also present. ‎ ‎The Committee expressed serious concern over the government’s recent decision to increase petroleum prices despite the availability of existing stocks. Members questioned the rationale behind the price hike and the burden it places on the public, particularly low-income groups. The officials of Petroleum informed the Committee that the Federal Government took the decision due to hoarding of oil and panic in the country, while the available stock was sufficient for only 20 to 25 days. The Chairman Committee directed the Petroleum Division to provide complete details of Oil Marketing Companies (OMCs) to determine whether the benefit of the price increase went to the government or the OMCs, and also asked for a rate analysis of the recent oil prices determined by the Petroleum Division. ‎ ‎The Committee also raised concerns over the cancellation of a $200 million Natural Gas Efficiency Project loan, noting that the project was cancelled owing to non-progress. The EAD officials also informed the Commitee that an interest amounting to US$ 0.04 million had been paid by the Federal Government.   ‎Senator Syed Waqar Mehdi raised his serious concern that about the non-utilization of the loan and he asked about action taken by the SSGCL in this regard. The MD, SSGCL informed the Commitee that written evidence regarding the cancellation of the loan should be available with the department and requested additional time to provide the details. The Chairman Committee observed that situation raises serious concerns about the capacity of the executing agency, SSGCL. The Committee directed that a detailed report be submitted within two days to fix responsibility for the inefficiencies. ‎ ‎The Committee was briefed on the World Bank funded Electricity Distribution Efficiency Improvement Project. Members expressed concern over delays in the procurement of AMI meters and the prolonged process of hiring consultants, which reportedly took 18 months. The Committee stressed the need for merit and efficiency in procurement to avoid such delays. The Chairman directed the authorities to identify those responsible and take appropriate action, and asked the Power Division to submit a one-page brief to the Committee with details of the tendering process and the hiring of the consultant. ‎ ‎The Committee also reviewed the implementation status of its earlier recommendation regarding the recovery of the irregular payment of Rs. 1.282 billion in taxes made to the contractor for 765kV Islamabad West Grid Station project. The DMD, NGC briefed the Committee on the findings of the inquiry committee constituted by the MD, NGC, while officials from the Auditor General’s office informed that the matter had been discussed in the DAC and will eventually be taken up by the PAC. Expressing strong displeasure over the continued non recovery of the amount, the Committee granted a final opportunity, upon the request of the Ministry of Energy (Power Division), to recover the amount and report back before Eid, failing which the matter will be referred to NAB. The Ministry was also directed to submit a written report to the Committee.   ‎The Committee further discussed the recommendation regarding ADB 401B-2022 Lot II-A (ACSR Bunting Conductor) and expressed displeasure over the absence of the Secretary, Ministry of Energy from the meeting. The Committee directed that a detailed action-taken report be submitted and instructed the Ministry to ensure the Secretary’s presence in the next meeting. ‎ The Committee was also briefed on the ongoing education sector Actions to Strengthen Performance for Inclusive and Responsive Education (ASPIRE) project. Officials informed the Committee that Federal government has provided PKR 24 billion to provinces to improve education for lagging districts. Provincial Project Directors provided updates on the implementation status of the project.   ‎The Committee noted concerns regarding the non-technical composition of School Management Committees (SMCs) in Punjab province and was informed that the SMC policy had recently been revised. The Chairman directed authorities to ensure the construction of technically sound classrooms to guarantee the safety of students. ‎ ‎Representatives from Khyber Pakhtunkhwa province also briefed the Committee on the progress of the ASPIRE project in their respective provinces. The Committee appreciated the efforts being made to strengthen the education sector.  ‎ However, the Chairman expressed concern over the absence of a representative from Balochistan and directed that the province ensure representation in future meetings.