News Detail
Event Title: Senate Petroleum Committee Seeks Action on Unpaid Salaries, PMDC Privatization and Oil Pricing
Event Date: 2026-09-17
The Senate Standing Committee on Petroleum, which met today under the chairmanship of Senator Umer Farooq, expressed serious concern over the non-implementation of the Federal Cabinet’s decision regarding the merger of ENAR Petrotech Services (Pvt.) Ltd. with OGDCL and the non-payment of salaries to its employees for the last 22 months, Daily Oil Pricing creating hardships for general public, OMCs benefactors details and JJVL issues.
The meeting was attended by Senators Saifullah Abro, Abdul Wassy, Saadia Abbasi, Sardar Al Haj Muhammad Umer Gorgaij, Hidayatullah Khan, Jam Saifullah Khan and Manzoor Ahmed, while Senator Amir Waliuddin Chishti participated through Zoom.
The Committee questioned the delay in implementing the Federal Cabinet’s decision to merge ENAR Petrotech with OGDCL, noting that after a delay of nearly two years, the OGDCL Board had reportedly declared the merger unviable. The Committee was also informed that ENAR Petrotech employees had not received salaries for 22 months. The Chairman directed the concerned authorities to ensure payment of outstanding salaries and submit details explaining the decision and process regarding the proposed privatization of ENAR Petrotech.
The Committee also expressed concern over proposals to privatize the Pakistan Mineral Development Corporation (PMDC), observing that the entity is a profit-making organization and plays an important role in the mining sector, particularly in Balochistan. The Committee reiterated its recommendation that the Federal Government should reconsider any move to privatize PMDC.
The Director General, Explosives, briefed the Committee on the issuance of L-Form licences and informed that the licensing process had been digitized. The Chairman appreciated the digitization initiative and emphasized that licensing procedures should remain transparent and efficient without creating unnecessary hurdles for investment.
The Committee deferred discussion on the profits of licensed Oil Marketing Companies (OMCs) and details of their actual beneficial ownership. OGRA, SECP and other relevant authorities were directed to provide the required record and ensure their attendance at the next meeting.
The Committee examined the current status and gas supply arrangements of Jamshoro Joint Venture Limited (JJVL) and expressed concern over the supply of domestic gas to a private entity while the public-sector Jamshoro Power Plant faced gas shortages. The Committee directed SSGC to furnish details of the agreement/renewal, operational status of JJVL, outstanding and recovered dues, quantity of gas supplied and production, and the rationale and benefits of the arrangement in the context of national energy requirements. The chairman committee also sought clarification regarding the basis for prioritizing gas supply to JJVL over the Jamshoro Power Plant and measures taken to prevent unauthorized gas utilization.
The Committee took up the matter of the premature termination of 14 employees of the Geological Survey of Pakistan before completion of their contractual period. The Chairman directed the Secretary Petroleum to resolve the matter and submit a report to the Committee.
The Committee also expressed concern over the daily oil pricing mechanism and the continued increase in petroleum prices, noting its impact on the general public. Members questioned the subsidy mechanism as well as expenditure incurred on advertisements for the petrol subsidy scheme. The Chairman directed the relevant authorities to submit complete details of expenditure on the advertisements, as well as the pending FIA inquiry into allegations of excessive profits earned by OMCs on existing stocks following the sudden increase in petroleum prices in March.
The Chairman further directed the concerned authorities to brief the Committee on the daily oil pricing formula and ensure the presence of representatives of FIA, SECP and OGRA, along with all relevant records, at the next meeting to examine matters concerning OMCs.