PPP opposes change in gas distribution formula

Centre’s proposal could benefit Punjab consumers, affect other provinces

ISLAMABAD: The Pakistan Peoples Party on Wednesday filed an adjournment motion in the National Assembly, seeking a debate over the centre’s proposed change in the natural gas distribution formula that could benefit household consumers in Punjab and affect industrial and commercial consumers in other provinces.

Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi convened a meeting of provincial representatives a few days ago in Islamabad for brainstorming on redefining the natural gas allocation policy to treat equally all residential consumers across the country irrespective of gas produced in one province or the other before seeking its approval from the forthcoming meeting of the Council of Common Interests.

PPP lawmakers Shazia Mari, Syed Naveed Qamar, Nawab Muhammad Yousaf Talpur, Imran Zafar Laghari and Nawab Ali Wassan through their adjournment motion alleged that: “Any such effort will be sheer violation of the gas distribution formula prescribed in the constitution of Pakistan.

“It will only benefit a province that produces the least amount of natural gas while the rest of the country, especially those provinces that produce the bulk of natural gas, will suffer from any such arrangement.”

According to reports, the centre was seeking dedication of natural gas produced in all provinces to residential consumers as a ‘first priority’ to overcome acute winter shortages, bypassing the current arrangement of gas supply as enshrined in Article 158 of the constitution.

Three smaller provinces are opposed to any change to gas allocation because it appeared to have been designed to benefit consumers in Punjab that suffers low gas pressure during peak winter months.

At 68%, Sindh has the largest share in overall gas production of the country, followed by around 15% in Balochistan, 5% in Punjab and around 12% in Khyber-Pakhtunkhwa. Consumption-wise, Punjab tops the list with 45% share, followed by about 42% in Sindh, 7% in K-P and 6% in Balochistan.

The PPP claims that the constitution grantees that it will be first right of the province to use a natural resource from where it is produced. The PPP lawmakers said this will be another attempt by the federal government to infringe upon the constitutional rights of the provinces.

The motion is likely to be taken up in the next session of the National Assembly.

Published in The Express Tribune, July 28^th, 2016.