Fate of new gas supply schemes unclear on funds scarcity

Finance ministry says budget portfolio has no funds for such projects

ISLAMABAD: As the country endures pressure on its finances and the Ministry of Finance refuses to provide funds from the budget, the fate of 123 gas supply schemes worth over Rs30 billion in the constituencies of parliamentarians is unclear, which may eventually be dropped, say sources.

However, the government has decided to execute 100 gas supply projects worth billions of rupees falling in the first category where state funding is not required.



During the four-year premiership of Nawaz Sharif, who was disqualified by the Supreme Court in a graft case in July this year, the cabinet had approved making necessary provision in the yearly budget for the gas supply schemes.

Sources revealed that the government placed new gas projects in three categories.

First category covers the projects where costs are within criteria and no government funding is required. The second category pertains to the projects where funding was required from the Sustainable Development Goals (SDGs) programme. In the third category, the government needs to finance these schemes.

However, different political parties criticised the SDGs programme launched by former premier Sharif and described it as politically motivated aimed at winning over votes in elections next year.

According to sources, 100 gas schemes fall in the category one, 34 schemes come in category two and 123 schemes are covered by category three, which requires direct funding from the government and proportionate financing from Sui gas companies.

A ministerial committee approved the 123 gas supply schemes of category 3, saying the matter may be taken up with the federal cabinet for seeking required funds.

The Planning Commission recommended in the committee meeting that funds could be allocated from the Public Sector Development Programme.

However, sources said, the Ministry of Finance in the cabinet meeting held on August 22 argued that the budget portfolio for fiscal year 2017-18 did not have funds for such schemes.

This came despite the fact that a provision was required to be made in line with the decision of the federal cabinet.



The cabinet’s approval was sought for earmarking Rs30 billion from any head so that work on the gas supply schemes could be initiated.

After comprehensive discussions, the cabinet approved 100 gas development schemes falling in category one where government funding was not required. It made it clear that implementation of the schemes requiring government financing would be subject to the availability of funds.

Published in The Express Tribune, August 31^st, 2017.

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