Devolution of Power: Senate Committee Takes Historic Step

Islamabad: The Senate Functional Committee on Devolution convened today under the chairpersonship of Senator Zarqa Suharwardy at the Parliament House.

Attendees included Senators Zamir Hussain Ghumro, Poonjo Bheek, and Fawzia Arshad, along with senior officials from relevant departments.

The committee unanimously recommended the devolution of the Federal Ministry of Industries and Production and the Ministry of Energy (Petroleum Division). Further recommendations on the distribution of responsibilities to the provinces or the Council of Common Interests (CCI) will be made subsequently.

During the briefing on the performance of the Ministry of Industries and Production over the last two financial years, the committee noted that the ministry had become a provincial subject. However, the Additional Secretary of the Ministry of Industries and Production suggested that the Ministry of Law and Justice could provide a more informed opinion on this matter.

The chairperson questioned the rationale behind investing in steel mills. She inquired why national steel mills were closed while private mills were operational and selling steel. She also asked why 2,200 employees were hired if the mills were closed, to which the ministry responded that laying off 50 percent of the workforce requires labor court approval.

The issue of privatizing steel mills was also discussed. It was noted that a Chinese company had withdrawn its interest in acquiring the steel mills, leading to their removal from the privatization list.

The chairperson expressed concern over the steel mill’s gas bill, which amounts to Rs 44 crore. She highlighted the disparity between the general public’s gas shortages and the provision of gas to non-operational mills. Officials responded that gas supply to the steel mill had been discontinued.

Secretary of Industries and Production clarified that subsidies are provided to farmers, not to factories and industries.

The committee requested a report on the fertilizer factory’s sales and exports, specifically the quantity of urea sold and exported by the ten major fertilizer companies.

The non-developmental budget for the Ministry of Industries and Production stands at 62 billion rupees. Senator Zarqa Taimur questioned the benefits to Pakistan and the allocation of 25 billion rupees in urea subsidies. The Secretary explained that the subsidy is intended to address gas shortages, despite domestic consumers facing gas shortages. The committee requested detailed information on the companies and individuals receiving subsidies.

The committee unanimously agreed to abolish the Ministry of Industries and Production and devolve its responsibilities to the provinces.

The committee also reviewed the performance of the Ministry of Petroleum over the past two financial years. Senator Zamir Hussain Ghumro expressed concerns about the creation of 70 new companies, stating this was beyond government authority. The committee has requested details on the boards of these companies.

Senator Ghumro also indicated that if issues persist, the Prime Minister may be called to address them. He noted that the Petroleum Division is managed by the Council of Common Interests and that all institutions listed in Federal Legislative List 2 fall under its administration.

Concerns were raised about the Board of SNGPL. The chairperson asked about Sendak Company’s operations and earnings. Petroleum Division officials reported that a joint venture contract, which had expired, was renewed in 2021. They also mentioned that over $350 million had been received by Pakistan, with over $250 million paid to Chinese partners. The committee resolved to devolve the Ministry of Energy (Petroleum Division).

A representative from the Power Division requested an in-camera meeting to discuss the details and implications of devolving the ministry.

Additionally, the committee observed that the Secretary of Inter-Provincial Coordination should brief on the achievements in sports. The chairperson criticized the lack of promotion and support for sports since Arshad Nadeem’s victory, noting that only selfies and financial rewards had been provided. The committee has requested a detailed report on measures taken to improve sports in Pakistan.