Oil and gas resources, corporate profits: Authorities directed to transfer 50pc share to provinces
ISLAMABAD: Parliamentary committee on the implementation of 18th Constitutional Amendment on Tuesday directed central authorities to transfer the 50 percent constitutional share in oil and gas resources and corporate profits to the provinces without further delay otherwise the Auditor General could be ordered to directly withhold and transfer funds if the directives of the committee were not complied with.
The committee also directed a strict compliance with provincial job quotas across federal services, corporations and statutory bodies as out of 38 federal divisions, only one grade 22 officer currently represents Balochistan.
Zamir Hussain Ghumro chaired the Senate Functional Committee on Devolution which expressed serious concern over lack of mechanism of Petroleum Division and Establishment Division for implementation of notifications issued under Article 172 (3) of Article 38 (g).
The committee warned that strict legal action would be taken against top officials, including federal secretaries, if they fail to ensure compliance within two weeks.
The chairman committee argued that shifting key subjects like oil, gas, and regulatory oversight to the federal cabinet bypasses the proper constitutional forum (CCI), diluting provincial input and weakening federal unity. “Inter-provincial coordination is constitutionally come under ambit of the CCI, whereas the IPC Division operates within the Federal Cabinet,” he added.
The chairman committee pointed out that under constitutional provisions of Article 173 (3), provinces are entitled to an equal and joint share in mineral oil and natural gas revenues within their territorial waters. For 16 years, he said trillions of rupees in profits from 13 state-owned companies and entities (such as PPL) have allegedly been kept away from the provinces.
The committee outlined the only two acceptable methods to resolve this issue: Transferring 50 percent of the oil and gas directly to the respective provinces or distributing 50 percent of the declared profits of these state-owned companies—after audit by the Auditor General of Pakistan—directly to the provinces.
The committee also demanded strict adherence to federal employment quotas (promotion, transfer, recruitment).
The chairman emphasized severe representation gaps, noting that out of 38 federal secretaries, only four hail from Balochistan. Similar deficits exist across federal autonomous bodies and corporate institutions.
He further alleged that thousands of quota seats particularly for Balochistan remain unfilled or have been by-passed through temporary or proactive hiring practices without proper provincial allocation.
The Secretary Establishment assured the Committee of full compliance with constitutional provisions, clarifying that all employees receiving salaries from the Government of Pakistan fall under the purview of this provincial Share framework. The Committee showed concerns over the absence of the representatives of the Federal Public Service Commission as the matter relates to provincial shares in recruitment as well.
Additionally, during briefings on the financial implications of devolved subjects and the 7th National Finance Commission Award, the Committee noted the fiscal challenges faced by the federation and provinces, reaffirming its commitment to exercise its parliamentary oversight for ensuring constitutional compliance and safeguard for provincial rights. He said Federal expenditure stood around Rs 19 trillion whereas total tax and non-tax revenue of the country is Rs 20 trillion which should be cause of concern for all. It must be slashed drastically.
He noted that while Prime Minister’s directives on rightsizing and austerity aim to freeze new appointments, constitutional mandates under post-18th Amendment provisions require securing provincial shares and actively rectifying past omissions.
The meeting was attended by Senators Jan Muhammad Buledi and Poonjo Bheel, Secretaries Cabinet, (CCI), Establishment Division, the Special Secretary Establishment, the Additional Secretary Establishment, senior officers from the Ministry of Petroleum.
Copyright Business Recorder, 2026