Gas Infrastructure Cess Bill passed from Senate

ISLAMABAD: The Senate Wednesday passed a bill to levy and collect the Gas Infrastructure Development Cess (GIDC) amid walkout by senators belonging to the PTI, MQM, ANP and PML-Q, dubbing it a great injustice to masses already hit hard by inflation.
Opposition and some of the treasury benches claimed the proposed legislation: the Gas Infrastructure Development Cess Bill, 2015, was in gross violation of the Constitution’s five articles, including articles 158, 161, 162 and 172, and insisted that it should have been also placed before the Council of Common Interests (CCI).
Some opposition senators asked the government to put on hold metro bus and orange train projects and utilise funds for development of gas infrastructure, fearing the funds collected under the process cess would be diverted for the favourite projects of the rulers.
While opposing the bill, Sardar Azam Khan of PkMAP from Balochistan alleged the move was like last drone attack from Punjab on the Federation. He complained that in his district Musakhel, there was not a single lady doctor available, being the most backward province of Pakistan along with Awaran. He wanted to also join exiting senators, but the party’s parliamentary leader Usman Kakar asked him to resume his seat.
During a debate that continued for almost three hours after Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi moved the bill in the House, a clear division was seen among senators and majority of them, hailing from Khyber Pakhtunkhwa, Balochistan and Sindh, alleged the piece of legislation was aimed at benefiting Punjab only while some senators alleged it was a bill from Punjab against three smaller provinces.
Abbasi told the House that the initiative was not new, as gas cess was already been collected for the last four years and the objective was to utilise it for the proposed Iran-Pakistan gas pipeline, Turkmenistan-Afghanistan-Pakistan-India pipeline and other infrastructure

projects. He assured the Senate would have the role of an oversight while a report on the cess funds use would be placed in the Parliament annually.
The minister dispelled the impression that the cess or proposed gas pipelines or LNG were supposed to meet Punjab’s energy needs. Referring to concerns by some senators, he also clarified that LNG would be for power sector and it would bring cost of power generation down and smaller provinces would be given preference. “Every province and consumer will have right on imported gas,” he maintained. He said the proposed move was of national importance. A day earlier, the National Assembly adopted the bill. It is believed the prorogation of the Senate session was delayed in view of this bill, whereas the assembly was summoned especially for this purpose.
Senator Ilyas Ahmad Bilour moved a motion for the constitution of a special committee of the House that would see implementation of the cess bill besides taking care of anomalies regarding recovery and application of the same. The Senate Chairman Mian Raza Rabbani will form the committee in consultation with the leader of the House and leader of opposition.
Opposition and treasury senators, including Tahir Hussain Mashhadi, Rubina Irfan, Dr Ashok Kumar, Hasil Khan Bizenjo, Sassui Palijo, Nasima Ehsan, Mohsin Leghari, Saeed Ghani, Ilyas Bilour, Usman Kakar, Khushbakht Shujaat, Shahi Syed, Mohsin Aziz, Osman Saifullah Khan, Salim Mandviwala and Nauman Wazir spoke on the issue.
Majority of senators opposed the bill and clarified that they were not opposed to progress and prosperity in Punjab but this should not be at the cost of other three smaller provinces. They alleged the government appeared to be bulldozing the House to get the bill through. Senators alleged the measure was being taken on the dictation from IMF. It was also proposed that the cess collection from captive power plants should not be more than Rs100 per mmbtu.
Senators from KP and Balochistan, in particular, said their provinces were not in need of imported gas, as they were self-sufficient. The PPP senators supported the bill and said it was during their government, the bill was first passed in 2011 but then the Supreme Court had intervened. Leader of Opposition Aitzaz Ahsan said senators had spoken their heart about the governance style of the rulers and claimed it was not a reaction to the bill but to the rulers, who had given all key ministerial posts to lawmakers from Punjab and because of this, Punjab was being needlessly blamed.
He questioned why on PM’s foreign visits, only Chief Minister Punjab accompanied him, being a part of his 12-member ministerial team from Punjab. “This government failed to even win soft corner from Punjab even,” he claimed.
Aitzaz believed senators had used decent language to express their views regarding the government policies and the rulers must understand and aver the situation from becoming more serious. “There is underlying warning to the government, which must come out clean, they have not shared with the nation the LNG price even,” he noted.
He insisted that the proposed Pak-China Economic Corridor should pass through Gwadar, Dera Ismail Khan and other parts of KP. He made it clear they would not allow any change in the original route of the multi-billion project. The senator said there was embezzlement of Rs18 billion in Nandipur power project alone. As the chair took up the bill for clause-by-clause reading, opposition senators walked out of the House in protest.
The chair also announced constitution of a special committee with regards to the PCEC with five members from Balochistan and four each from other three provinces in addition to representation from Fata.
Making a new start, the House Business Advisory Committee would visit Quetta on June 01 and interact with the chief minister and provincial ministers to get first-hand information about the provincial issues.