Since the current government took over about a year ago, civil bureaucracy has been more active in making money by taking control of oil and gas companies, adding to the miseries of the entire energy chain.
The best option experts suggest could be merger of two ministries – petroleum and water and power – for a better and sustainable solution to the energy shortages. The two ministries are the best example of jostling by the civil bureaucracy to take control of energy companies and thanks to the red tape that the country is experiencing its worst energy crisis.
In the case of electricity supply, hours-long outages, extending up to 15 hours in some areas, have crippled business and ordinary life and even Water and Power Minister Khawaja Asif looked helpless when he asked people to pray for reduction in load-shedding.
In the area of oil and gas production and supply, the petroleum ministry has brought under its influence almost all major companies either by hiring its favourite officials as acting heads or appointing chairman of the board of directors of their choice.
A close relative of Khawaja Asif is leading the National Electric Power Regulatory Authority (Nepra), so what would consumers expect when a relative is a minister and another is the regulator’s head.
Apart from taking control of state-owned organisations, the ministry officials are also allegedly involved in hefty spending on foreign trips. Two most favourite officials of Petroleum Minister Shahid Khaqan Abbasi are running the ministry, which has thrown millions of rupees on foreign trips without contributing anything to the country.
Arshad Mirza, Additional Secretary of the Ministry of Petroleum, went on 23 overseas trips in the last one year. Now, he has been given acting charge of the second largest oil and gas exploration company, Pakistan Petroleum Limited, ignoring all senior officials of the company.
Dr Umar Jehangir, a former assistant commissioner of Murree who was brought to the petroleum ministry after the new government took over, made 29 foreign trips. He was made deputy secretary for appointment on boards of directors of several oil and gas companies.
The sorry state of affairs does not end here as close friends of the finance minister have been brought on the boards of Oil and Gas Development Company and Pakistan State Oil.
These appointments on political considerations have put a question mark over the performance of the companies. This makes no difference between the PML-N and PPP administrations. Both have treated the companies in the same way, bringing no improvement in energy supplies, the shortage of which has weakened the country’s economy.
Some suggestions
Experts suggest that the boards of public sector oil and gas companies should be independent, which could come up with recommendations for increasing energy supplies.
They cite the example of the United States which has boosted its oil and gas production by deregulating the industry 30 years ago. In recent years, US companies have discovered huge shale gas reserves, increasing energy supplies as well as reducing gas prices for domestic consumers.
Pakistan could also go for privatising oil and gas companies in a bid to stave off political interference and make a marked improvement in performance.
In 2010, the Friends of Democratic Pakistan (FODP) also called for merging the ministries of water and power and petroleum and the associated regulators for resolving the energy crisis.
At that time, the government agreed to establish the Ministry of Energy by merging functions of the two ministries by January 2012 to ensure integrated policy development, planning and implementation. Separately, there will be a ministry to monitor the development of the water sector.
It also agreed to merge Nepra and Oil and Gas Regulatory Authority (Ogra) into a single, autonomous and effective energy regulator.
The time is ripe to merge the ministries and regulators and take measures to tackle the energy crisis and woo investors. The energy sector must also be deregulated in order to tap its true potential and make the country self-sufficient.
Otherwise, the next government will be repeating the same story and the people will continue to endure energy shortages.
Published in The Express Tribune, July 21st, 2014.
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COMMENTS (11)
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If PPL management is/was bad... we should not support replacement of bad people with bad once. Assistant commissioner/DC/ADC definitely could not run the department which requires highly technical expertise. They don't even know the definition of Hydrocarbon/energy. Facts and figure mentioned above seem correct to our sense. This situation is not only in M/o Petroleum or Water but prevailing in all ministries.
Agreed. They need to find out whats been gong on for decades in this so called well managed organization (PPL). I bet after digging into its previous engagements and affairs there will be lots and lots of surprises for all of us. That is why they are AGAINST GOVT OVERSIGHT of state owned energy companies terming it as "INTERFERENCE".
It would be interesting and surely applaudable , if an investigation is carried out by the Petroleum Ministry to determine the number and purpose of international visits made by Pakistan Petroleum Ltd so called senior management and calculate how much in total was wasted during past several years. Only then a full and possibly a neutral picture can emerge, as to which party is responsible. Someone told me the other day, managers at PPL travel business class and stay at 5 start hotels while traveling abroad. Their favorite destination the same source said was Dubai, since most employees have families residing there and all they need is a technical excuse to pay a visit at PPL's expense - That's by all means a waste of resources of a state owned enterprise, struggling to meet energy demands of an energy starved nation !!!!!!!!!
Adding to previous comment, unified energy ministry is not the ultimate solution to the power crisis, everyone knows circular debt and lack of new infrastructure is the real.issue. CNG stations, obsolete power.plants, current fuel.mix and non payment of.dues are the real culprits. I'm sure the energy ministry can wait until actual problems are solved
Biased reporting by the newspaper. Kindly verify the info before publishing.The number of trips mentioned in the article is LOL-worthy itself. The officers mentioned have a good reputation in the professional circles I know for a fact.This report seems to be planted on the behest of certain people.
News item did not mention, Asim Murtaza Khan, former MD PPL made over 35 foreign visits, yielding in no value to the company and the country. Domestic gas production is declining and PPL market share is constantly shrinking (I THINK LESS THAN 20% from 25% COUPLE YEARS AGO)
Certainly, the published material is full of factual flaws and very much so manipulated. News is about presenting facts, figures and a perspective on a particular issue & subject and then let the readers decide and conclude. Here it appears that the judgement is already passed and the contents simply presented for us to basically read and believe :))
@Moin Siddiqui: Instead of your suggestion can you or anybody else deny the fact that the above provided information is incorrect?
Looks like a group of employees from a gas exploration company is behind the promotion of such news clippings. Suggestion - before news of this sort is published, the authenticity of info much first be verified and vested intentions if any clarified and understood :)
lot of example are there for those who have merit in their approach but in a country like our's looking beyond oneself is non existing-poor brought up and poor education.