ISLAMABAD: The Petroleum Division said on Wednesday Pakistan may be fined $18 billion for not completing the Iran-Pakistan-India (IPI) gas pipeline project on time.
The Petroleum Division secretary said this in response to a question as he briefed the Public Accounts Committee on the IPI project. The PAC members inquired how much Pakistan could be fined for not completing the project on time.
The meeting of the Public Accounts Committee was held under its Chairman Noor Alam Khan, in which the audit paragraphs related to the Petroleum Division for the years 2021–22 were examined.
The secretary of Petroleum Division told the committee that, according to the agreement, Pakistan may be fined $18 billion for not completing the Pak-Iran gas pipeline on time. He said Pakistan had told the US ambassador to let Pakistan complete the project or give the money to help the country pay the fine.
Senator Mushahid Hussain Syed, Barjees Tahir, Senator Mohsin Aziz, and other members said that India was taking gas from Iran, Japan and other countries, only Pakistan has been targeted.
PAC Chairman Noor Alam Khan directed that the Ministry of Foreign Affairs to call the US ambassador and tell him that Pakistan will lose $18 billion to the Pak-Iran gas pipeline. “The US should give us the relief of 18 billion dollars or allow us to implement this agreement,” he remarked. He said it should be made clear to the US that Pakistan would have relations with regional countries and that business should not compromise its national interests.
The secretary of the Petroleum Division told the committee that Pakistan has also talked to the United States about the Iran gas pipeline, asked for relief, and has been told that they cannot give such a big penalty. He told the committee that there is a ban on gas from Iran, and we cannot take it.
The Public Accounts Committee has sought the record of perks and privileges given to retired judges and generals in its next meeting. It also sought the record of payments made to retired judges, bureaucrats and generals as well as pensions, perks and privileges that they had received.
The PAC also sought the record of free gasoline used by government vehicles. The chairman said that the country was in an economic quagmire, so the department of Auditor General of Pakistan should submit the requisite record to the committee by next week. He directed that the record of the recovered plots by the Capital Development Authority should also be provided to the committee.
PAC member Barjees Tahir said that government officials consume thousands of liters of free fuel and also asked for the record of free gasoline used in vehicles. PAC member Sheikh Rohail Asghar said parliamentarians are paid Rs10 per km for the vehicles.
Noor Alam Khan contended that around 20 vehicles are being used in the protocol. He said the protocol squad of the president, prime minister, Chief Justice and Chief of Army Staff should not cause inconvenience to the people. The committee instructed the PAC Secretariat to write to the Cabinet Division to prevent the public from suffering owing to the protocol.
Senator Mohsin Aziz termed the GIDC a “forced tax” for the lack of progress in projects and demanded that this forced collection from the people be stopped as the governments had failed to achieve the goal.
On the issue of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline (TAPI), the secretary of the Petroleum Division told the committee that there is a safety and security issue with the project. He told the committee that after laying the pipeline in Afghanistan, there is a safety and security problem, and a security guarantee is sought.
On the issue of talks with Russia, the secretary of the Petroleum Division told the committee that many meetings had been held in the past three to four months.
In the meanwhile, examining the audit paragraphs on the non-utilisation of Rs322 billion in the Gas Infrastructure Development Cess, PAC member Barjees Tahir contended that the government had received Rs325 billion from the gas infrastructure development cess but it spent only Rs2 billion.
The secretary of the Petroleum Division told the committee that the GIDC has Rs325 billion in finance while the Petroleum Division has Rs2.8 billion.
The committee adjourned the matter, seeking details about the money from the finance ministry.
While examining another audit para, the committee took notice of removing the names of directors from the ECL without recovering Rs56 billion from Byco and sought a reply from the petroleum secretary.
Noor Alam Khan said there were audit paragraphs of Rs56 billion about a company and why protections were given to these companies. “How are the names of these officers removed from the ECL? Put their names back on the ECL,” he directed.
The petroleum secretary told the committee that the entire process had taken place in the Interior Ministry, not in the Ministry of Petroleum, and the former should be asked about it. The committee also sought a response from the Interior Ministry on the issue of removing the names from the ECL.During the meeting, the petroleum secretary refused to answer on the issue of re-registration of the blacklisted company with a new name and said that there was sensitive information and that he could only inform the PAC chairman in a one-on-one meeting. Committee members Tariq Hussain, Mohsin Aziz and others protested, but the petroleum secretary said that information cannot be shared in an open meeting.
The PAC also sought a report on the non-receipt of gas development surcharge of more than Rs42 billion, and the non-commencement of work on 344 development schemes of parliamentarians.
Taking up the issue of ban on new gas connections, the PAC directed lifting the ban on new gas connections.
Chairman Noor Alam Khan directed the OGDCL to lift the ban on new sites and petrol pumps. He also directed the abolition of the ban on installing petrol pumps everywhere, including Hazara and Peshawar. “Promote PSO and discourage defaulting private companies,” he said.
The OGRA chairman told the committee that the audit of all oil refineries will be completed by June. The PAC directed that the audit of the oil refineries be completed within the month.
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