SINCE 2011, there has been a moratorium in place for new gas connections because of the dwindling supplies of domestic gas. Every government comes under intense pressure to grant more gas connections in the constituencies of important political personalities since these connections carry great political pay-offs and are viewed as signature emblems of success by constituents. But since domestic gas has been declining rapidly and has to be supplemented by imported LNG, which is multiple times more expensive, this important political promise has become increasingly more difficult for politicians to deliver on. Now we hear, via a case being heard in the Islamabad High Court, that 55 political personalities, including senior ministers in the government, have been granted a relaxation in this moratorium for connections to their constituencies. There is no other way to view this other than through the lens of patronage politics.

The politics of patronage where natural gas is concerned is not new, and part of the reason why there was a moratorium to begin with was to put an end to the whole game. Industry and residential consumers have competed ferociously with each other for access to piped domestic gas, and under the previous rulers, it was something of a norm for the government to attach demands of loyalty in exchange for granting such requests. But natural gas is far too important a resource to play politics with. Almost half our primary fuel needs are met with natural gas, and if access to this precious resource is going to be decided arbitrarily by the prime minister, it opens the door not only to large-scale corruption, but also massive misallocation of the precious fuel. Instead of discretionary approvals for new connections, the government ought to be more focused on tightening the legal regime to determine access that is above politics, and more importantly, price reform to encourage the judicious use of this resource. The manner in which these 55 connections have been granted has been below the radar of the media and courts, which raises further concerns about transparency. Now that the matter has been exposed, perhaps the government should also be asked about its plans to reform the gas sector to ensure continued provision of the vital resource without burdening the state with distortionary subsidies and the grounds upon which these particular requests were granted a relaxation from the moratorium.

Published in Dawn, February 27th, 2017