Chairman of PSDC: PHC annuls notification on replacement of JUI-F MPA with PTI MNA

PESHAWAR: The Peshawar High Court (PHC) on Tuesday suspended the Khyber Pakhtunkhwa chief minister’s notification regarding replacement of Jamiat Ulema-i-Islam-Fazl (JUI-F) MPA as chairman Petroleum Social Development Committee (PSDC) with PTI MNA for utilisation of funds under the head of Petroleum Social Development fund and 10 percent royalty in the oil and gas producing districts.

A division bench comprising Chief Justice Waqar Ahmad Seth and Justice Abdul Shakoor issued the stay order by suspending the chief minister’s notification regarding removal of the JUI-F MPA Zafar Azam as chairman Petroleum Social Development Committee (PSDC) and his replacement by the PTI MNA Shahid Ahmad Khattak. The petitioner had claimed that this was made against the law and the superior courts’ judgments.

The bench also issued notices to federal secretary Ministry of Petroleum and Natural Resources, and the Khyber Pakhtunkhwa government through chief secretary and secretary finance and directed them to submit reply before the next hearing. The court passed the directions in a writ petition filed by JUI-F MPA Zafar Azam, elected from PK-86 Karak, in which he challenged the KP chief minister’s notification that amended the previous notification to replace him as chairman PSDC by the PTI MNA from Karak. Arguing his case, Muhammad Yasir Khattak, counsel for the petitioner submitted that in the light of high court and Supreme Court judgments and cabinet decision, the JUI-F MPA Malik Zafar Azam was made chairman of Petroleum Social Development Committee (PSDC) for utilisation of funds under the head of Petroleum Social Development fund and 10 percent royalty of oil and gas in the oil and gas producing districts in southern Khyber Pakhtunkhwa. The lawyer informed the bench that the chief minister at the cabinet meeting held on January 2, 2019 made amendments in the earlier decision and replaced the JUI-F MPA with PTI MNA as chairman PSDC because the JUI-F was political rival of PTI.

He submitted that during the years 2008-2009 the federal government promulgated a policy whereby five percent was sanctioned as share of royalty on oil and gas receivable from the federal government for different divisions/districts of Khyber Pakhtunkhwa for development activities where well-heads are located.

Under this policy, it said a meeting of the committees constituted for utilisation of five percent share on account of royalty on oil and gas received from the federal government would be utilised in oil and gas producing districts including 50 percent in the tehsil that produces oil and gas and 50 percent in rest of the district.

Moreover, the lawyer submitted it was also decided that the said amount will be utilised for drinking water supply, schools, road, electricity, gas and technical education projects under the ADP schemes.

He submitted that on March 24, 2012 the Finance Department, Khyber Pakhtunkhwa issued a notification wherein it was stated that in pursuance of the provincial cabinet decision in its meeting held on March 7, 2012, the provincial government has been pleased to notify the amended policy regarding five percent share of royalty on oil and gas receivable from the federal government in districts where well-heads are located.