Recovery of Rs445bn GIDC: Petroleum Div seeks help of AGP

ISLAMABAD: The Petroleum Division has sought the Attorney General of Pakistan (AGP)’s assistance in recovering Rs 445 billion Gas Infrastructure Development Cess (GIDC), stuck in various court cases.

The secretary petroleum informed members of the Senate Standing Committee on Petroleum, which met at Parliament House on Monday.

Senator Mohammad Abdul Qadir chaired the meeting. He noted that Rs445 billion was due from various institutions and urged to expedite recoveries in this regard.

The secretary Petroleum Division said that Rs171 billion was pending from the fertilizer sector which was the biggest chunk.

The committee was informed that the gas agreement between the Ministry of Petroleum and the government of Balochistan is still in process. The secretary informed the committee that the Ministry of Petroleum has prepared recommendations and that the agreement could be finalised if the provincial government is ready.

The committee chairman urged all stakeholders to resolve the issue of pending GIDC amounts as soon as possible and said farmers should be given subsidies rather than fertiliser companies.

The committee was also updated on the status of three oil and gas fields in Balochistan. According to the secretary of petroleum, extraction will begin in 18 months.

He commented that work has been ongoing in Jandran, Balochistan, since 1975, but the field is yet to supply oil and gas.

Various security and political constraints have hampered proper implementation, according to the secretary.

The committee was informed by Managing Director Oil and Gas Distribution Company Limited (OGDCL) Zahid Mir that four wells had been drilled at the Jandran Gas field.

He stated that a feasibility report will be ready in March, and that pipeline construction will begin by the end of April. The supply of 85 MMCFD gas from Jandran will begin this summer, he added.

Copyright Business Recorder, 2023