Staff Report
ISLAMABAD: The 20-member Task Force on Gas-related Issues, led by Deputy Prime Minister (DPM) Ishaq Dar, has been unable to finalize the implementation of the Council of Common Interests’ (CCI) decision to allocate 35% of future gas discoveries to the private sector, primarily due to the repeated absences of Petroleum Minister Musadik Malik.
According to sources familiar with the matter, the delay is linked to Malik’s failure to attend two key meetings of the task force, hindering progress on a policy expected to unlock $5 billion in investment for Pakistan’s oil and gas sector. Despite the task force convening four meetings, the petroleum minister’s absence from two critical sessions has stalled the decision-making process, sources added.
The task force, which was created to enforce the CCI’s directive from January 2024, has encountered challenges due to the petroleum minister’s non-participation. The CCI’s amended Exploration & Production (E&P) policy stipulates that 35% of gas from future discoveries should be allocated to the private sector through competitive bidding. The policy requires the Petroleum Division to submit an implementation framework to the Executive Committee of the National Economic Council (ECNEC) for final approval. However, even after eight months, the Petroleum Division has yet to present the framework to ECNEC, further delaying the policy’s implementation.
Sources revealed that while the task force has held four meetings to enforce the decision, Musadik Malik only attended the first two. His absence has caused frustration among task force members, as the decision is seen as critical to attracting much-needed investment in the energy sector. Sources further suggested that Malik is opposed to the allocation of 35% of future gas discoveries to the private sector and prefers that the matter be reconsidered by the CCI, contributing to the delay.
In the absence of the petroleum minister, the task force has continued discussions on other energy sector issues. During a meeting on Monday, the committee addressed topics such as high-speed diesel imports, the utilization of additional liquefied natural gas (LNG), and the allocation of gas to the Fauji Fertilizer plant. However, the core issue of gas allocation remains unresolved.
DPM Ishaq Dar, growing increasingly frustrated with the repeated delays, has called for swift action to implement the CCI’s decision. He urged the committee to reach a unanimous decision on the allocation of future gas discoveries to the private sector. Sources have indicated that Dar plans to convene another meeting next week in an effort to break the deadlock and move forward with the policy’s enforcement.
The task force’s failure to implement this policy is causing concerns in the energy sector, as the decision is seen as a potential catalyst for significant investment and economic growth. However, with internal disagreements still unresolved, the future of the 35% gas allocation policy remains uncertain.
