KARACHI: Sindh Chief Minister Qaim Ali Shah has said that the provincial government has refused to accept new energy policy of federal government until and unless issues of oil and gas pertaining to the province were resolved.
The Chief Minister said this, while chairing a meeting, which was briefed by Sindh Minister for Finance and Energy Murad Ali Shah, saying that the federal government has not yet addressed reservations expressed by Sindh government on issues of oil and gas.
He informed Ministry of Petroleum has convened a meeting on April 7 in Islamabad to discuss issues of oil and gas, which were raised by Sindh government during IPC meeting. IPCC Division, which is competent to discuss such decisions, should have convened the meeting, he said.
Sindh government had raised issues pertaining provision of natural gas to Engro Fertilizer at concessional rates, which has caused financial loss of Rs4-5 billion annually in Gas Development Surcharge (GDS).
Sindh also took issuance of policy guidelines for adjustment of gas tariff for Sui Southern Gas Company Limited/Sui Southern Gas Pipelines Limited. Dismantling of Gas Price Agreement (GPA) of Mari Petroleum Company Limited.
This action has caused huge financial loss to Sindh government, as Mari Gas Company was a major contributor in gas development surcharge. It is feared government of Sindh may lose around Rs 8 billion to Rs 10 billion annually.
