ISLAMABAD: The Sindh government has firmly opposed a proposed framework allowing gas exploration companies to sell 35% of local gas to private parties, cautioning that this could impose an additional Rs243 billion burden on residential consumers over the next five years.
During the Executive Committee of the National Economic Council (ECNEC) meeting, chaired by Deputy Prime Minister Ishaq Dar, Sindh representatives argued that the decision would prioritize private parties over domestic consumers, violating constitutional provisions. They contended that the Council of Common Interest’s (CCI) directive to meet overall demand before approving private sales had not been honored.
The Petroleum Division presented the framework without prior circulation, prompting Sindh to seek additional time for consultations. A committee led by Ishaq Dar was tasked to resolve internal disagreements, though the inclusion of private company representatives raised concerns about conflicts of interest.
Sui Northern Gas Pipelines Limited (SNGPL) warned that the policy could lead to reduced indigenous gas supplies, higher reliance on costly imported gas, and increased tariffs for consumers. Sindh maintained its stance, asserting the need to protect residential users from unaffordable energy costs.
The final outcome of the ECNEC deliberations remains uncertain, with Sindh continuing to advocate for a revised and equitable gas allocation strategy.
Story by Shahbaz Rana
