Islamabad, March 9,2026: The Senate Standing Committee on Economic Affairs on Monday expressed serious concern over the recent increase in petroleum prices and sought detailed reports on several energy and education sector projects during a meeting held at Parliament House.
The meeting was chaired by Saifullah Abro and attended by Syed Waqar Mehdi, Haji Hidayatullah Khan, and Rubina Khalid, while Jan Muhammad participated as a special invitee.
Senior officials, including the Secretary of the Economic Affairs Division, Special Secretaries of the Petroleum and Power Divisions, and the Managing Director of Sui Southern Gas Company Limited (SSGCL), were also present.
The committee voiced strong concern over the government’s decision to increase petroleum prices despite the availability of existing stocks. Members questioned the rationale behind the hike and its impact on the public, particularly low-income groups.
Officials from the Petroleum Division informed the committee that the price increase was prompted by oil hoarding and panic buying across the country. They stated that available reserves were sufficient for only 20 to 25 days.
Chairman Saifullah Abro directed the Petroleum Division to provide complete details of Oil Marketing Companies (OMCs) to determine whether the financial benefit of the price increase accrued to the government or the companies. He also asked for a detailed rate analysis of the latest petroleum pricing determined by the division.
The committee also raised concerns about the cancellation of a $200 million Natural Gas Efficiency Project loan due to lack of progress. Officials from the Economic Affairs Division informed the committee that the federal government had already paid $0.04 million in interest on the unused loan.
Senator Syed Waqar Mehdi expressed concern over the non-utilization of the loan and sought details about action taken by SSGCL. The Managing Director of SSGCL requested additional time to submit documentation related to the cancellation.
Chairman Abro observed that the situation raised serious concerns about the capacity of the executing agency and directed that a detailed report be submitted within two days to determine responsibility for the inefficiencies.
The committee was also briefed on the World Bank-funded Electricity Distribution Efficiency Improvement Project.
Members expressed concern over delays in the procurement of Advanced Metering Infrastructure (AMI) meters and the prolonged process of hiring consultants, which reportedly took 18 months.
The chairman directed authorities to identify those responsible for the delays and instructed the Ministry of Energy (Power Division) to submit a one-page briefing detailing the tendering process and consultant hiring.
The committee reviewed the implementation status of its earlier recommendation regarding recovery of Rs1.282 billion in irregular tax payments made to a contractor involved in the 765kV Islamabad West Grid Station project.
Officials from the Auditor General of Pakistan informed the committee that the matter had been discussed in the Departmental Accounts Committee and would eventually be taken up by the Public Accounts Committee of Pakistan.
Expressing displeasure over the continued non-recovery of the amount, the committee granted a final opportunity to the Ministry of Energy to recover the funds before Eid. It warned that the case would otherwise be referred to the National Accountability Bureau.
The committee also discussed procurement matters related to ADB 401B-2022 Lot II-A (ACSR Bunting Conductor) and expressed displeasure over the absence of the Secretary of the Ministry of Energy from the meeting. It directed the ministry to submit a detailed action-taken report and ensure the secretary’s presence in the next session.
The meeting also reviewed progress on the Actions to Strengthen Performance for Inclusive and Responsive Education (ASPIRE) project, supported by international partners.
Officials informed the committee that the federal government had provided Rs24 billion to provinces to improve education standards in underperforming districts.
Provincial project directors briefed the committee on implementation progress. Members raised concerns about the non-technical composition of School Management Committees (SMCs) in Punjab and were informed that the policy had recently been revised.
Chairman Abro directed authorities to ensure technically sound classroom construction to guarantee student safety.
Representatives from Khyber Pakhtunkhwa also briefed the committee on the progress of the ASPIRE project in the province, while the committee expressed concern over the absence of a representative from Balochistan and directed that the province ensure representation in future meetings.
