The Senate Standing Committee on Petroleum placed the Reko Diq mining project at the center of its meeting on Tuesday, acknowledging the project’s massive economic potential for Balochistan and Pakistan. Officials briefed lawmakers that around 20% of the ground work at Reko Diq has been completed and assured the Committee that production is expected to begin by end-2028.
Masood Nabi, Managing Director of GHP, told the Committee that the Reko Diq copper and gold project is projected to deliver unprecedented financial benefits over its estimated 37-year life cycle:
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$26 billion for Balochistan
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$11 billion for the federal government
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$15 billion for Pakistani companies
He further noted that these figures are based on current projections, and the operational lifespan could be extended, potentially increasing the total economic gains.
However, the Committee expressed concern over the absence of a representative from Barrick, the operator of Reko Diq, and directed that a senior operational team member attend all future meetings. The Ministry also invited the Committee for an on-ground visit to the project site.
Senators emphasized that local communities must benefit first, especially in employment and training opportunities.
Committee Meeting Overview
The meeting was chaired by Senator Umer Farooq and attended by Senators Quarat-ul-Ain Marri, Abdul Wassy, Rana Mehmood-ul-Hassan, Mir Dostain Khan Domki, Hidayat Ullah Khan, Jam Saifullah Khan, Amir Waliuddin Chishti, and Bilal Ahmed Khan.
Lawmakers expressed strong displeasure over the absence of the Minister for Petroleum and instructed that his presence be ensured in future meetings. Members also criticized the adhocism within the Petroleum Ministry and the lack of complete data from relevant officers.
Gas Shortages in Quetta and Sindh
A major portion of the meeting focused on low gas pressure and prolonged outages in Quetta and Sindh. The performance of SSGCL and SNGPL came under scrutiny as senators highlighted severe disruptions in daily life due to gas shortages.
Officials briefed the Committee about a nationwide load-management shutdown from 10:00 PM to 5:00 AM. They also highlighted challenges such as tampered meters and the use of illegal suction compressors, particularly in Quetta, which restrict gas supply to consumers at the tail end of the network.
Senators emphasized the constitutional requirement under Article 158, which mandates that provinces producing natural gas must receive priority in supply.
CSR Activities and Local Community Benefits
Senator Amir Waliuddin Chishti questioned Barrick’s Corporate Social Responsibility (CSR) initiatives in Balochistan. Officials reported that the company is engaged in projects providing safe drinking water and education facilities in the region.
The Committee also requested the selection criteria for the 27 Balochistan youths trained internationally under the project and stressed the need for local hiring and skill development.
Refinery Policies and Environmental Concerns
The Committee reviewed administrative matters related to Jamshoro Joint Venture Limited (JJVL) and directed officials to present a comprehensive historical briefing at the next meeting.
Members also raised concerns about Kerosene, LDO, and Solvents being mixed with petrol, resulting in harmful environmental impacts. OGRA and DG (Oil) were instructed to issue final warnings and cancel licenses of non-compliant companies.
Investment Issues in Refinery Sector
The Director General (Oil) briefed the Committee on Greenfield and Brownfield refinery policies. Lawmakers expressed dissatisfaction over the low investment in the sector, particularly due to sales tax barriers.
The Chair directed the Finance Ministry and the Petroleum Ministry to jointly participate in the next meeting to develop a more investment-friendly sales tax framework.
Gas Connections in Khyber Pakhtunkhwa (KPK)
Senators Hidayat Ullah and Abdul Wassy raised concerns regarding delays in new gas connections in KPK. Officials assured that around 70% of new connection requests have already been processed, with meters installed throughout the province.
The Committee also took up an employee-related matter of OGDCL and directed the department to resolve the issue and provide a detailed follow-up report.
