Press Release Title: Senator Jam Saifullah Khan, Convener Sub-Committee of the Senate Standing Committee on Petroleum presiding over a meeting of the Committee at Oil and Gas Development Company Limited (OGDCL) Headquarter Islamabad

Press Release Date: 6th July, 2026

Sub-Committee of Senate Standing Committee on Petroleum Reviews Two-Decade Delay in Implementation of Prime Minister's Directive and Supreme Court Orders on Gas Supply to Local Communities   A meeting of the Sub-Committee of the Senate Standing Committee on Petroleum was held at the OGDCL Conference Hall, Islamabad, under the chairmanship of the Convener of the Sub-Committee, Senator Jam Saifullah Khan.   The meeting conducted a comprehensive review of the persistent failure over the past two decades to implement the Prime Minister of Pakistan's directive dated 15 September 2003 and the orders of the Hon'ble Supreme Court of Pakistan regarding the provision of natural gas to all localities situated within a five-kilometre radius of gas-producing fields. The Sub-Committee examined the reasons behind the prolonged non-compliance, sought to identify those responsible, and deliberated on practical measures to ensure the expeditious and time-bound implementation of these directives.   Addressing the meeting, Convener Senator Jam Saifullah Khan observed that despite clear directions from both the Prime Minister and the Supreme Court, the policy has not been implemented. He recalled that the Prime Minister had announced that all communities located within five kilometres of gas-producing fields should be provided with natural gas, but regretted that the commitment remains largely unfulfilled. He stated that the Sub-Committee had been constituted specifically to review the matter, identify the obstacles preventing implementation, and ensure compliance with both the Prime Minister's directive and the Supreme Court's judgment.   The Convener emphasized that this is an issue of significant public importance and directed that the heads of all relevant ministries, departments, and companies must attend future meetings of the Sub-Committee. He further stated that just as gas is being supplied to local communities in Dera Bugti and Sui, similar facilities should also be extended to residents of Ghotki, Mari, Qadirpur, and all other gas-producing regions across the country.   Officials informed the Committee that during the Prime Minister's visit to Dadu at the inauguration of a gas discovery, the Prime Minister had directed that all villages and localities within a five-kilometre radius of gas fields should be provided with natural gas. This principle was subsequently declared applicable to all gas-producing fields in Pakistan.   The Committee was informed that in 2008, the Economic Coordination Committee (ECC) approved revised per-consumer cost criteria for gas supply schemes within the five-kilometre radius of gas fields as follows: Punjab and Sindh: Rs. 54,000 per consumer   Khyber Pakhtunkhwa: Rs. 108,000 per consumer   Balochistan: Rs. 270,000 per consumer   Both gas utility companies, SSGCL and SNGPL, prepare development schemes in accordance with these cost criteria. Expenditures exceeding the approved limits were previously financed through the Public Sector Development Programme (PSDP) under the Prime Minister's directives. However, the Federal Government discontinued block funding for gas development schemes in the PSDP from the financial year 2013-14 onwards.   The Committee was further informed that the Hon'ble Supreme Court of Pakistan, in its judgment dated 27 December 2013, directed the Ministry of Petroleum and Natural Resources to implement the Prime Minister's directive in accordance with the law and ensure priority gas supply to all villages and localities situated within five kilometres of every gas field.   To implement the Supreme Court's judgment, both SSGCL and SNGPL were instructed during the financial year 2020-21 to conduct detailed surveys of the remaining villages within the prescribed radius. Subsequently, the companies prepared development schemes in various phases.   SSGCL developed eight phases of projects with a total estimated cost of Rs. 5.946 billion, of which Rs. 5.017 billion was to be financed by the Federal Government. Although funding for the first four phases was provided through the PSDP up to FY 2025, no allocation was made in the PSDP for FY 2026.   Similarly, SNGPL prepared six phases of development schemes with a total cost of Rs. 5.544 billion, requiring Rs. 3.908 billion from the Federal Government. However, only Rs. 100 million was allocated, preventing meaningful progress on the projects.   The Committee was informed that gas supply projects under the five-kilometre policy are exempt from the moratorium imposed on the expansion of the gas pipeline network. However, due to the absence of PSDP funding and uncertainty regarding future federal financial support, consideration may be given to financing these schemes through the development budgets of the respective provincial governments. The Convener directed that comprehensive surveys of all newly discovered gas fields be completed and reports submitted to the Committee.   Officials of SNGPL informed the Committee that gas has already been provided to local populations around gas-producing fields in Khyber Pakhtunkhwa. They further stated that surveys of newly discovered gas reserves in Waziristan have been completed and the report has been submitted to the Ministry of Petroleum.   The Deputy Commissioner Ghotki informed the Committee that numerous complaints had been received from local residents regarding the non-provision of gas connections. He stated that no gas connections had been provided in Mari, while only limited connections had been installed in Qadirpur. In response, the Convener reaffirmed that local communities residing in gas-producing areas have the legitimate right to receive natural gas.   The Sub-Committee sought detailed written reports from all concerned ministries, departments, and companies. The Convener stated that the Committee had been constituted to resolve the matter and called upon all stakeholders to extend their full cooperation.   The  Secretary, Ministry of Petroleum, who participated through video link, was directed to convene all relevant institutions, identify the reasons for the failure to implement the Prime Minister's directive and the Supreme Court's orders, and submit a comprehensive report to the Committee within 15 days.   The Sub-Committee also decided to summon officials from the Ministries of Finance, Planning and Petroleum, OGRA, and other relevant organizations in its next meeting to undertake a detailed review of the issue.   During the meeting, Senator Hidayatullah Khan proposed that the concerned institutions formally write to Deputy Commissioners of all relevant districts to verify whether villages located within five kilometres of gas-producing fields have actually been provided with gas. He noted that such verification would provide accurate and practical information for informed decision-making.   Concluding the meeting, the Convener stated that the Ministries of Finance, Planning and Petroleum, along with the gas utility companies and all other concerned organizations, would jointly develop an effective mechanism to ensure full implementation of the Prime Minister's directive and the Supreme Court's judgment, while guaranteeing gas supply to deserving local communities. He also directed OGDCL, PPL, SSGCL, SNGPL, Mari Energies, and all other relevant organizations to extend their full cooperation with the Committee in resolving this long-pending issue