A Senate sub-committee has strongly criticised state-owned Sui gas companies for their prolonged failure to implement the Prime Minister's directive issued 23 years ago and the subsequent orders of the Supreme Court of Pakistan regarding the provision of natural gas to all localities situated within a five-kilometre radius of gas-producing fields.
Sub-Committee Review and Findings
The meeting of the Sub-Committee of the Senate Standing Committee on Petroleum, held under the chairmanship of Senator Jam Saifullah Khan, conducted a detailed review of the persistent non-compliance over the past two decades. The directive, originally issued on 15th September 2003 by the then Prime Minister, and the Supreme Court's judgment of 27th December 2013, both mandated that all villages and localities within five kilometres of gas fields be provided with natural gas. The sub-committee examined the reasons behind the prolonged delay, sought to identify those responsible, and deliberated on practical measures to ensure expeditious and time-bound implementation.
Senator Jam Saifullah Khan observed that despite clear directions from both the Prime Minister and the Supreme Court, the policy had not been implemented. Officials informed the committee that the directive originated during the Prime Minister's visit to Dadu at the inauguration of a gas discovery, where he ordered that all villages and localities within a five-kilometre radius of gas fields should be provided with natural gas. This principle was subsequently declared applicable to all gas-producing fields in Pakistan.
Cost Criteria and Funding Challenges
The committee was informed that in 2008, the Economic Coordination Committee (ECC) approved revised per-consumer cost criteria for gas supply schemes within the five-kilometre radius. The costs were set at Rs54,000 per consumer in Punjab and Sindh, Rs108,000 per consumer in Khyber Pakhtunkhwa, and Rs270,000 per consumer in Balochistan. Both gas utility companies, SSGC and SNGPL, prepare development schemes in accordance with these cost criteria. Expenditures exceeding the approved limits were previously financed through the Public Sector Development Programme (PSDP) under the Prime Minister's directives. However, the federal government discontinued block funding for gas development schemes in the PSDP from the financial year 2013-14 onwards, creating a significant funding gap.
The Supreme Court, in its judgment dated 27th December 2013, directed the then Ministry of Petroleum and Natural Resources to implement the Prime Minister's directive in accordance with the law and ensure priority gas supply to all villages and localities within five kilometres of every gas field. To implement this judgment, both SSGC and SNGPL were instructed during the financial year 2020-21 to conduct detailed surveys of the remaining villages within the prescribed radius. Subsequently, the companies prepared development schemes in various phases.
Project Costs and Funding Shortfalls
SSGC developed eight phases of projects with a total estimated cost of Rs5.946 billion, of which Rs5.017 billion was to be financed by the federal government. Although funding for the first four phases was provided through the PSDP up to FY2025, no allocation was made in the PSDP for FY2026. Similarly, SNGPL prepared six phases of development schemes with a total cost of Rs5.544 billion, requiring Rs3.908 billion from the federal government. However, only Rs100 million was allocated, preventing meaningful progress on the projects. The committee was informed that gas supply projects under the 5km policy are exempt from the moratorium imposed on expansion of the gas pipeline network. However, due to the absence of PSDP funding and uncertainty regarding future federal financial support, consideration may be given to financing these schemes through the development budgets of the respective provincial governments.
Provincial and Local Issues
The convener directed that comprehensive surveys of all newly discovered gas fields be completed and reports submitted to the committee. Officials of SNGPL informed the committee that gas has already been provided to local populations around gas-producing fields in Khyber Pakhtunkhwa. They further stated that surveys of newly discovered gas reserves in Waziristan have been completed and the report has been submitted to the Ministry of Petroleum.
The deputy commissioner of Ghotki informed the committee that numerous complaints had been received from local residents regarding the non-provision of gas connections. He stated that no gas connections had been provided in Mari, while only limited connections had been installed in Qadirpur.
Next Steps and Accountability
The secretary of the Ministry of Petroleum, who participated through video link, was directed to convene all relevant institutions, identify the reasons for the failure to implement the Prime Minister's directive and the Supreme Court's orders, and submit a comprehensive report to the committee within 15 days. The sub-committee also decided to summon officials from the Ministries of Finance, Planning and Petroleum, OGRA, and other relevant organizations in its next meeting to undertake a detailed review of the issue. The convener stated that all other concerned organizations would jointly develop an effective mechanism to ensure full implementation of the Prime Minister's directive and the Supreme Court's judgment, while guaranteeing gas supply to deserving local communities.
