Senate committee recommends devolution of 2 ministries

ISLAMABAD: The Senate Functional Committee on Devolution on Monday unanimously recommended the devolution of the Federal Ministry of Industries and Production (FMIP) and the Ministry of Energy (Petroleum Division).

Further recommendations on distribution of responsibilities to the provinces or the Council of Common Interests (CCI) will be made subsequently. A meeting of the committee was held here chaired by Zarqa Suharwardy at the Parliament House. During a briefing on the performance of the Ministry of Industries and Production over the last two financial years, the committee noted that the ministry had become a provincial subject. However, the additional secretary of the ministry suggested that the Ministry of Law and Justice could provide a more informed opinion in this matter. A representative from the Power Division requested an in-camera meeting to discuss details and implications of devolving the ministry.

Zarqa questioned the rationale behind investing in the national steel mill. She inquired why the mill was closed while private mills were operational and selling steel. She said why 2,200 employees were hired if the mill was closed, to which the ministry responded that laying off 50 per cent of the workforce required labour court approval. The issue of privatizing the steel mill was also discussed. It was noted that a Chinese company had withdrawn its interest in acquiring the mill, leading to its removal from the privatization list.

The chairperson expressed concern over the steel mill’s gas bill amounting to Rs 440 million. She highlighted the disparity between gas shortages for the general public and provision of gas to non-operational mills. Officials responded that gas supply to the steel mill had been discontinued.

The secretary of Industries and Production clarified that subsidies were provided to farmers, not to factories and industries. The committee sought a report on fertilizer factories’ sales and exports, specifically the quantity of urea sold and exported by 10 major fertilizer companies. The committee was told that the non-developmental budget for the Ministry of Industries and Production stood at Rs 62 billion.

Zarqa questioned the benefits to Pakistan and the allocation of Rs 25 billion for urea subsidies. The secretary explained that the subsidy was intended to address gas shortages, despite domestic consumers facing gas shortages. The committee sought detailed information on companies and individuals receiving subsidies. The committee unanimously agreed to abolish the Ministry of Industries and Production and devolve its responsibilities to the provinces.

Zamir Hussain Ghumro expressed concerns about the creation of 70 new companies, stating that this was beyond the government authority. The committee asked for details on the boards of these companies. Zamir indicated that if issues persisted, the prime minister might be called to address them. He noted that the Petroleum Division was managed by the Council of Common Interests and that all institutions listed on the Federal Legislative List 2 fell under its administration.

Concerns were raised about the SNGPL Board and Zarqa asked about the Saindak Company’s operations and earnings. Petroleum Division officials reported that a joint venture contract was renewed in 2021 and over $350 million had been received by Pakistan, with over $250 million paid to Chinese partners. Additionally, the committee observed that the inter-provincial coordination secretary should brief on achievements in sports. Zarqa criticized the lack of promotion and support for sports since Arshad Nadeem’s victory, noting that only selfies and financial rewards were provided. She sought a detailed report on measures taken to improve sports in Pakistan.