Senate panel rejects Federal Mineral Authority proposal

ISLAMABAD: The Senate Standing Committee on Petroleum on Thursday opposed the establishment of a federal-level Mineral Regulatory Authority, arguing that minerals are a devolved subject under the Constitution and fall within the jurisdiction of provinces.

During its meeting, chaired by Senator Umar Farooq, the committee deliberated on the Private Member Bill titled “The Pakistan Minerals Regulatory Authority Bill, 2024,” moved by Senator Mohammad Abdul Qadir.

He advocated for the creation of the authority to regulate and promote Pakistan’s mineral industry. However, the proposal faced strong resistance. Senator Qurat-ul-Ain Marri emphasized that the 18th Constitutional Amendment grants provinces full authority over minerals, rendering a federal-level regulatory authority unconstitutional. An official from the Law Ministry acknowledged the constitutional limitation but suggested referring the matter to the Cabinet Division for review.

Meanwhile, Secretary Petroleum informed the committee that work was underway to harmonize federal and provincial mineral laws, with assistance from two foreign consultants. The committee urged Senator Abdul Qadir and the Petroleum Division to resolve these jurisdictional issues before further consideration of the bill.

The meeting also discussed the country’s worsening gas shortfall and the progress of exploration activities. Officials revealed that 56 gas drilling projects over the past three years have cost approximately $1.23 billion, resulting in daily production of 7,696 barrels of oil and 260 MMCFT of gas.