Balochistan border areas: LPG transportation badly affected by security challenges, Senate body told
ISLAMABAD: The Senate Standing Committee held a detailed meeting to review issues relating to LPG supplies and security, Customs warehouses and rewards, petroleum products, electricity transmission and tariffs, the longstanding FESCO-related case involving industrialists and senior officers and performance of distribution companies (DISCOs).
At the outset, Senator Amir Waliuddin expressed dissatisfaction over the repeated absence of the relevant minister from committee meetings. The Chairman Rana Mahmood-ul-Hasan also recorded his concern and directed that the minister’s presence be ensured at the next meeting.
The Senate body was informed that LPG prices had doubled. Customs officials stated that the country’s monthly LPG requirement stands at approximately 5,000 to 6,000 metric tonnes.
Customs officials briefed the Committee on security challenges affecting LPG transportation along the Balochistan border, particularly attacks on tankers on the Taftan–Quetta route. They informed the Committee that trade is now also being conducted through Gabd and that LPG tankers are currently being provided security escorts.
According to Customs officials, around 40 tankers were set on fire near Nushki. Tankers are now being moved from Taftan to Nokundi and onward to Nushki in convoys. The convoy system has been operational for the past month, although some attacks on convoys have also occurred. Officials reported that the security situation is now improving.
The Committee inquired whether the LPG transported through these routes was entering the country through legal channels. Customs officials maintained that the LPG was arriving through legal procedures and that no smuggling was taking place.
Customs officials further informed the Committee that the value of a single LPG tanker is approximately Rs 50 million. Based on the number of tankers affected, losses have reached approximately Rs 2 billion.
The Additional Inspector General informed the Committee that the security situation in the province would remain highly sensitive during August and that only one convoy would be able to operate during this period. He added that the overall security situation is expected to improve over the next five to six months.
Senator Maulana Atta-ur-Rehman observed that unrest, previously concentrated in Baloch areas, had now deteriorated in Pashtun areas as well.
The Committee was informed that audits of Customs warehouses are currently under way. Customs officials stated that there are allegations of theft from warehouses, but no concrete evidence has so far emerged.
The Chairman questioned reports that Customs Collectors were being given rewards of Rs 100 million. Senator Abdul Qadir observed that such a large amount appeared difficult to believe. Customs officials confirmed that officers do receive rewards but stated that the amounts are not as high as Rs 100 million.
They further informed the Committee that officers can receive a share of up to 40 percent from the auction of confiscated smuggled goods.
The Chairman directed the Customs authorities to submit complete details of all rewards paid during the last three years, including the top ten officers rewarded in each year, at the next meeting.
Expressing concern over reports regarding Customs warehouses, the Chairman observed that there are complaints that goods worth billions of rupees have gone missing. The Additional Inspector General informed the Committee that the police are investigating the matter.
The Chairman directed that the investigation report be shared with the Committee immediately upon completion.
Senator Abdul Qadir informed the Committee that two Customs inspectors posted in Gadani had reportedly not been removed despite efforts by the FBR Chairman. The Chairman directed the relevant authorities to provide complete details on the matter at the next meeting.
The Committeee was also briefed on cases involving Go Company in Multan. Customs officials stated that two cases are pending, one of which has been registered by the Federal Investigation Agency. The department has determined duty evasion of Rs 2.35 billion in the case, involving the removal of goods through more than 1,000 tankers without payment of applicable duties.
The Chairman observed that every kind of smuggled goods was being sold in Multan’s grain market. Senator Amir Waliuddin called for structural reforms within Customs to prevent such fraud in future. Customs officials stated that their personnel are now conducting checks at the site themselves and that an automatic tank gauging system has been installed at warehouses.
Senator Amir Waliuddin appreciated the work undertaken by OGRA in digitalisation, stating that OGRA has done good work by digitalising its system. Senator Dilawar Khan questioned the role of PRAL in the overall process.
OGRA officials informed the Committee that petroleum products are being monitored through a digital mechanism. The country currently holds petroleum product stocks sufficient for more than 20 days. Officials further stated that Rs 53 billion has already been paid against outstanding Price Differential Claims. Documents of 14 out of 34 oil marketing companies have been received, and 25 percent payments to the companies will be made within one month.
The Chairman questioned the absence of NEPRA members from the meeting, noting that while the NEPRA Chairman is ill, the members should have been present.
Expressing serious concern over growing public distress caused by electricity bills, the Chairman observed that people across the country are more worried about electricity bills than about the police or the Revenue Department. He asked what measures were being taken to remove bottlenecks in the electricity transmission system.
The CEO of the National Grid Company informed the Committee that new measures are being introduced to improve the power system. The North Grid Station in Lahore has been constructed at a cost of USD 30 million. Officials stated that the stability of the transmission system has improved and that the capacity to transfer electricity from the south towards the north has been increased, providing a benefit of Rs 10 per unit.
An additional 500 megawatts of electricity is being supplied. Despite the crisis, the electricity tariff has not been increased, and electricity generated from Thar coal has helped keep power generation costs lower.
The Committee then examined the case concerning the arrest of prominent industrialists and officers in connection with electricity dues at the Faisalabad Electric Supply Company (FESCO).
The FESCO CEO informed the Committee that the case originated in 2015. The FIA closed the case in 2017 after failing to establish any corruption. The Power Division subsequently referred the matter to the National Accountability Bureau, which conducted investigations from 2019 to 2023. Neither corruption was established nor was any FIR registered by NAB.
Senator Abdul Qadir questioned how the FIA had become involved again when the investigation had already been assigned to another agency. Senator Saadia Abbasi observed that subjecting an industrialist to investigations by two separate agencies amounted to harassment.
The FESCO CEO maintained that the FIA did not previously have the case but had nevertheless registered an FIR, resulting in the arrest of two senior and honest officers of FESCO.
Senator Abdul Qadir expressed concern over the impact of such actions on investment, stating that no one in the country is currently willing to invest and that such tactics further discourage industrialists. He noted that a prominent industrialist from Faisalabad had been harassed and warned that following the FIA press conference, any industrialist considering further investment would think twice.
Taking serious note of the conflicting positions of the investigating agencies and the concerns raised over the treatment of industrialists and FESCO officers, the Chairman decided to summon the NAB Chairman and the Director General of the FIA to the next meeting.
Copyright Business Recorder, 2026