Hot debate on key issues at CCI meeting likely

ISLAMABAD: Council of Common Interest is likely to witness hot debate at next meeting scheduled for 29th February as all provinces have serious issues to be discussed including power and petroleum policies, shortage of water and supply and distribution of gas. 

Though population and home census is not included in the agenda distributed by the federal government, it is likely to be top agenda item as on the basis of new census seats of national as well as provincial assemblies will be allocated in every provinces.

Similarly share from the divisible pool will is also be linked to the population. And no province is ready to remain silent over the issue. Sindh and Balochistan provinces are bringing this item on agenda. Interestingly, Sindh wants population census to be conducted without any delay whereas Balochistan wants that it should be postponed till the time Afghan and other nationals are not repatriated to their countries. 

The Baloch think that Afghan refugees are tilting ethnic balance in favour of the Pashtun. The federal government has yet to announce final decision to conduct population census in March or delay it. Yet it is facing difficulties to get services of more than 200,000 army personnel to conduct the census credibly.

A tentative agenda sent to the provinces includes review of the decisions taken at the CCI meeting held on 18th March 2015. These decisions were power generation policy 2015, oil and gas matters, allocation of gas for twin cities and inquiry into corruption charges of Kachi kanal, public debt management and supervision policy, Pakistan energy efficiency and energy conversion bill 2014, amendment in IRSA Act 1992 and absorption of federal employees transferred to the provincial governments in the wake of 18th constitutional amendment. 

The Balochistan government wants to discuss short supply of water in pat feeder and kirther canals, pumping of drainage effluent, rationalization of distribution of water from Hub dam and early completion of ROBD-111 and resolution of energy problems of Balochistan province/enhancement of Absorption Capacity.

Then ministry of petroleum will seek discussion of liquefied petroleum gas production and distribution policy. Similarly, the ministry of water and power has proposed to discuss 2015-25 formulation of flood protection plan-IV. 

Sindh government has shown concern over the federal government’s decision to import LNG without its consultation and the decision to cut gas tariff, import LNG, provide gas to fertilizer sector at subsidised rates, dismantle GPA of Mari Petroleum Company and divest PPL shares, The News has learnt reliably. The concern was shown in a letter of Sindh Finance Minister Murad Ali Shah addressed to federal government and issued on 25th March 2015. 

The News also learnt that KP chief minister has many times verbally taken up the issue with concerned ministries in Islamabad and demanded that major decisions like framing power policy not be taken without consulting provinces, as they are main stakeholders in this sector.

Governments of Sindh and KP have been demanding for a year that these issues be placed before Council of Common Interest (CCI) before a final decision is taken, sources in federal government informed this correspondent. 

Provinces’ stance is that the federal government takes decisions at Economic Coordination Council and Cabinet Committee on Privatisation where provinces have no representation.

Minutes of these meetings are not shared with provincial governments. Sindh government gave constitution references in this letter. Sindh finance minister’s letter reads, “Sindh province has also reminded the federal government that at the meeting of the CCI held on 18 March 2015, Prime Minister Nawaz Sharif had directed to discuss all the matter related to oil and gas in CCI for final decision.

But now provinces are getting information through press about certain decisions regarding this sector without consulting provinces causing financial loss to the gas producing provinces under Gas Development Surcharge (GDS). 

Major decisions on which Sindh has reservations include provision of natural gas to main fertilizer factories at concessional rates, disinvestment of PPL shares, issuance of policy guidelines for adjustment of gas tariff for SSGCL/SNGPL, dismantling of gas price agreement (GPA) of Marri Petroleum Company, promulgation of Gas Infrastructure Development Cess Ordinance 2014, and import of LNG and its utilisation.” 

The Sindh government has demanded that matters relating to these sectors should be placed before the CCI before final decision on them.

Similarly, Power Generation Policy 2015, currently under consultation between federal government and provinces, should be taken up by the CCI at the earliest.

He also gave reference of a letter by Chief Minister Sindh Qaim Ali Shah to Prime Minister Nawaz Sharif in July 2014, which mentions “recent divestment of Pakistan Petroleum shares by secondary public offering to local institutions and high net worth individual at a discount of four percent i.e. Rs 205 as against the current market price of Rs 224.53 per share”. 

  The letter stated that “PPL is national oil and gas exploration and production company, and has acquired profitable status with public money. Provinces have a vested right on PPL shares and ownership. Neither provincial government consulted nor was the issue discussed and decided by the ICC.” Then Murad Ali Shah quoted his own letter addressed to Minister Petroleum and Natural Resources Shahid Khaqan Abbasi on January 23. In this letter, he mentioned, “Provision of gas on subsidised rates to M/S Engro Fertilizer Limited from the dedicated gas wells of Mari Petroleum Company instead of Qadirpur gas field through SNGP”.

It also points out loss of accrual on gas development surcharge to the tune of Rs 3-4 billion per annum is a loss to Sindh to the tune of Rs 2-3 billion per annum.

He complained that there was no response from the federal ministry. Now these two provinces have done their homework and are in a mood to take on federal government on these issues.

Though population census is not on agenda Sindh and Balochistan provinces are bringing this on agenda.