Cabinet seeks mini-budget for gas supply projects

Directs finance ministry to take ex-post facto approval from parliament


Our Correspondent April 26, 2017
PHOTO: EXPRESS

ISLAMABAD: The cabinet has directed the Ministry of Finance to seek approval of a mini-budget from parliament in order to pave the way for the release of billions of rupees for new gas supply schemes in the constituencies of key parliamentarians just about a year ahead of general elections.

Ban on new gas connections lifted after 6 years

The directive for ex-post facto approval, given in a meeting held on April 12, is aimed at providing legal cover to the 97 schemes worth Rs27 billion undertaken after Prime Minister Nawaz Sharif applied his discretionary powers.

The federal government is seeking the release of funds under the Public Sector Development Programme (PSDP), Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs).

However, the Pakistan Muslim League-Nawaz government may face strong opposition from different political parties including the Pakistan Peoples Party (PPP) in parliamentary debate. Sindh, which is governed by the PPP, has already resisted the use of funds on new gas supply schemes, mostly in Punjab.

The cabinet also lifted the moratorium, imposed in 2009 by the Economic Coordination Committee (ECC) in the wake of acute energy shortage, on undertaking the gas supply schemes.

The premier, while using his discretionary powers, has approved a grant of Rs27 billion for parliamentarians, mostly belonging to the ruling party, including ministers. Most of the gas projects have been launched in Punjab, which is believed to be aimed at winning over support of the voters.

Following recommendations of a special committee, the premier has approved the provision of funds even for those schemes that had been put on hold during the PPP administration. Khyber-Pakhtunkhwa Chief Minister Pervez Khattak, who is associated with the opposition Pakistan Tehreek-e-Insaf, is also a beneficiary and has been allocated funds for the provision of gas to different towns in his constituency in Abbottabad district.

The Supreme Court has termed the PM’s discretionary powers illegal and unconstitutional.

The apex court had ruled during the previous tenure of PPP-led government that the constitution did not allow any allocation of funds to the MNAs, MPAs and notables at the sole discretion of prime minister and chief minister.

Later, the present government went to the Supreme Court for a review of the decision, but the request was turned down. Captain (Retired) Safdar, son-in-law of the prime minister, is one of the key beneficiaries of the gas supply projects. He has been earmarked Rs2.3 billion for his NA-21 constituency.

Other major beneficiary is Minister of Capital Administration and Development Dr Tariq Fazal Chaudhry, who has got Rs2.5 billion for his NA-49 constituency. National Assembly Deputy Speaker Murtaza Javed Abbasi has got Rs1.4 billion indirect and Rs1.1 billion direct funding for NA-18 constituency in Abbottabad district.

Chaudhry Bilal Ahmed Virk, who heads the National Assembly Standing Committee on Petroleum and Natural Resources, has been allocated Rs2.7 billion for various localities in his NA-136 constituency in Sheikhupura district.

Ministry seeks more gas supply to power plants

Jamiat Ulema-e-Islam-Fazl (JUI-F) chief Maulana Fazalur Rehman has got Rs770 million for NA-24 constituency in Dera Ismail Khan.

Minister of Human Rights Kamran Michael has been earmarked Rs4 million for gas supply in Sheikhupura.

Other key beneficiaries include Water and Power Minister Khawaja Muhammad Asif, MNA Saira Afzal Tarar, Minister of Defence Production Rana Tanveer Hussain, Minister of Housing and Works Akram Khan Durrani, Punjab Minister of Population Welfare Begum Zakia Shahnawaz, Minister of Kashmir Affairs Muhammad Barjees Tahir and State Minister of Water and Power Abid Sher Ali.

Published in The Express Tribune, April 26th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ