NA panel concerned over CSR funds misuse

A parliamentary panel has raised concern about inadequate regulatory oversight that has led to misuse of Corporate Social Responsibility (CSR) funds and underutilization of production bonus and training funds by oil exploration and production (E&P) companies.

The National Assembly Standing Committee on Petroleum Division on Thursday convened to review the CSR initiatives by the E&P companies with MNA Syed Mustafa Mehmood in the chair.

During the meeting, the Ministry of Energy (Petroleum Division) secretary provided an overview of the allocation, utilization, and transparency measures for CSR funds managed by the E&P companies.

He said under Petroleum Policies from 1994 to 2012, companies were mandated to allocate funds to local welfare initiatives, covering areas such as healthcare, education, drinking water, drug awareness, sports, rehabilitation, scholarships, and infrastructure projects.

He said the E&P companies also invest in training and capacity building while adhering to policies governing Production Bonus contributions.

"Local district coordination officers (DCOs) and district commissioners (DCs) oversee CSR obligations, and the Auditor General of Pakistan conducts regular audits to ensure alignment with national development objectives and accountability," he said.

Speaking on the occasion, representatives of the E&P companies said security challenges are increasingly impacting their financial operations.