ISLAMABAD: National Assembly Standing Committee on Petroleum Division on Thursday expressed serious concern over inadequate regulatory oversight that has led to the misuse of Corporate Social Responsibility (CSR) funds and the underutilization of the Production Bonus and Training Fund by exploration and production (E&P) companies.
Chaired by MNA Syed Mustafa Mehmood, the Standing Committee convened to review the CSR initiatives by E&P companies.
In a unanimous decision, the committee agreed to form a subcommittee to draft new guidelines aimed at improving the utilization of CSR funds, production bonuses, and training funds for capacity building within the sector.
The committee further directed companies to take steps to limit environmental impacts, specifically by reducing biodiversity disruptions, minimizing water usage and waste discharge, and cutting harmful air emissions.
The emphasis was placed on reducing greenhouse gas emissions and enhancing energy efficiency in line with climate change mitigation efforts.
The Secretary of the Ministry of Energy (Petroleum Division) provided an overview of the allocation, utilization, and transparency measures for CSR funds managed by E&P companies.
He highlighted that 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 further detailed that E&P companies also invest in training and capacity building while adhering to policies governing Production Bonus contributions.
The Secretary said that 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.
