The Senate Functional Committee on Devolution has reached a consensus to dissolve two key federal ministries: the Ministry of Industries and Production and the Ministry of Energy (Petroleum Division). This significant decision was made during a meeting held on Monday, where the committee assessed the financial performance of these ministries over the last two fiscal years.
One of the primary concerns raised by the committee was the ongoing operations and investments in Pakistan Steel Mills (PSM). The committee questioned the viability of continued investment in the struggling entity, especially given its poor financial track record. The issue of PSM’s outstanding gas bill, which has ballooned to Rs. 440 million, was also discussed. In response, officials clarified that the gas supply to PSM had been cut off due to the entity’s inability to settle its debts.
Further scrutiny was placed on the Petroleum Division, particularly regarding the creation of 70 new companies without obtaining the required regulatory approvals. The committee expressed significant concerns about this expansion and requested detailed information about the boards governing these companies. Additionally, the committee urged the Prime Minister to intervene if these issues remain unresolved, signaling the gravity of the situation.
In light of these findings, the committee concluded that the Ministry of Energy (Petroleum Division) should be devolved. This decision marks a major step toward streamlining government operations and addressing inefficiencies within these ministries.
The dissolution of these ministries is expected to have far-reaching implications for the management of Pakistan’s industrial and energy sectors. The move aligns with broader efforts to decentralize governance and improve financial accountability across federal departments.
