Senators surprised at World Bank’s role in drafting Pakistan’s oil exploration law: report

ISLAMABAD: Senate Chairman Raza Rabbani on Wednesday directed the petroleum ministry to submit a written response about the extent to which the World Bank was involved in the drafting of a law about the apportionment of Pakistan’s natural resources.

This decision was prompted by the confession of a federal minister about the alleged role of the World Bank in the drafting of the said law, which took the Senate largely by surprise.

Minister of State for Petroleum Jam Kamal Khan, while wrapping up a Senate debate on an adjournment motion, acknowledged that the draft of Pakistan Petroleum Exploration and Production Regulatory Authority bill had been prepared by a World Bank consultant and that it had been placed before the Council of Common Interests (CCI).

The Senate was having a debate about the recent decision by the federal government to delink the petroleum and natural gas regulator from provincial oversight, being in direct violation of the Constitution.

Jamal Khan, however, said that the draft will be finalised after consultation with the provinces adding that ‘proposals are made and we pick and choose.’

Earlier, Senator Farhatullah Babar had said that a mysterious move is afoot to deprive the provinces of their rights to develop upstream petroleum sector by allowing the federal petroleum ministry to grant concessions in this regard, which was in violation of the 18th Amendment.

He said that a bill, “Pakistan Petroleum Exploration and Production Regulatory Authority Act 2107”, had already been drawn up to set up an authority to grant and monitor all petroleum concessions and other upstream activities throughout the country.

The upstream petroleum sector, he said, included exploration and production of oil and gas, besides holding the key to sufficiency in this sector, decreasing imports and paving way for the economic development in the country.

The senator further said the bill provided the petroleum ministry to initiate upstream development work anywhere in the country, through a “simple notification”. Terming the bill a one-liner that usurps the rights of the provinces, he said the bill gives complete authority to the ministry.

Upon this, Senate Chairman Raza Rabbani asked Babar to give a copy of the proposed bill to the secretariat, which he did.

Later, the minister concerned, while winding up the discussion, acknowledged that a draft of the legislation indeed had been drawn up.

Farhatullah Babar questioned that why the government had never had awarded concessions to the exploration companies or provinces during the last five years, asking was it deliberately done to favour “the powerful lobbies”. He also demanded a thorough investigation into the matter.

The reported patronage by the World Bank for such move should be probed, he said, adding that World Bank was not supposed to decide on how to apportion economic resources between the provinces and the federation, he said.

He said that the 2012 Petroleum Policy also stated that the policy would be revisited after five years; why it had not been done so far.

He also quoted from the relevant article of the Constitution and read out Article 172 (3) which states: “subject to the existing commitments and obligations, mineral oil and natural gas within the province or the territorial waters adjacent thereto shall vest jointly and equally in that the province and the federal government”.