The government has approved 97 natural gas expansion schemes worth more than Rs 37b after a moratorium banning new gas connections was relaxed by the prime minister. Most of the gas schemes have been extended to the constituency areas of parliamentarians who share the ruling party’s political base.
Of the 97 new gas schemes, only a minor of 20 schemes have been reserved for Khyber Pakhtunkhwa, Balochistan and Sindh — areas which have the largest share in terms of gas production while the remaining 77 new schemes recommended by PML’s MNAs will be launched in Punjab.
According to Article 158 of the Constitution, the province where the well-head of natural gas is situated should be prioritised over other provinces in the provision of gas.
Of the total investment, Rs27.23bn worth of new schemes would be implemented through indirect funding, while those worth Rs7.6bn would be financed by direct funding through block allocations and the Public Sector Development Programme (PSDP), which shall be undertaken by Sui Northern Gas Pipelines Limited (SNGPL).
Rs2.3bn worth of investment will be under the Sustainable Development Goals (SDGs), which includes Rs315 million to be spent by Sui Southern Gas Company Limited (SSGCL) and Rs2.01bn by SNGPL.
A government official is reported to have said that the agenda for the approval of these schemes was already sent to the cabinet meeting scheduled for March 24, which was later postponed. However, the government has already started dispensing the funds for the new gas schemes.
Interestingly, Punjab, where most new gas schemes have been approved, contributes a mere 3 pc to the country’s combined gas production and consumes a significant chunk of 42pc. Sindh produces 64 pc of all domestically produced gas and consumes 46 pc. Likewise, Baluchistan contributes 17pc to gas production against a minor consumption of 2 pc. On the other hand, KP has an equitable share in production and consumption of about 10 pc and 9 pc respectively.
A report on the 97 schemes approved, revealed that the largest allocation of Rs 3.2b has been set aside for NA-18, the constituency of Deputy Speaker Murtaza Javed Abbasi, followed by Rs2.4bn for NA-21 where retired Capt Mohammad Safdar, the prime minister’s son-in-law is the MNA. The third largest allocation is for NA-19, the constituency of Babar Nawaz Khan. All three constituencies are located in the Hazara division of KP.
The largest allocation in Punjab of Rs1.73bn has been reserved for NA-136, located in Sheikhupura where Chaudhry Bilal Virk is the MNA.
Other schemes approved by the prime minister have been on the recommendations of various ruling ministers.
