ISLAMABAD: The Senate Standing Commi­ttee on Petroleum on Tuesday rejected the government’s decision to privatise Pakistan Mineral Development Corporation (PMDC), saying its assets belonged to the provinces.

A meeting of the committee, presided over by Senator Umer Farooq, also discussed petroleum dealers’ demand for an increase in the sale margins on petroleum products, as well as demands for fresh gas connections under ban since 2021.

While discussing the proposed privatisation of PMDC, Senator Munzoor Ahmed raised concern over the potential loss of 5,000 jobs post-privatisation, questioning whether the corporation was operating at a loss and asserting its profitability. He opposed the privatisation move, stressing that deployment of local employees at various sites should be prioritised.

Petroleum Secretary Momin Agha told the committee that the government had categorised PMDC’s privatisation under the SOEs Act 2023 that includes PMDC in the second privatisation category, with the corporation having been profitable for the last three years.

“The cabinet had decided to add PMDC to the privatisation list,” he said, adding that its shares were wholly owned by the federation.

Senator Manzoor pointed out that the federation did not own the land outright but held it on lease. Concerns were raised regarding PMDC’s outdated methods and machinery, alongside reports of 80 fatalities over five years.

Senator Qurat-ul-Ain Marri questioned as to how the federation could privatise land belonging to the provinces without prior consultation.

The petroleum secretary clarified that only the corporate entity was being privatised and not the leases. He said the final clarity would emerge in due course once a financial advisor was appointed. Ultimately, the Senate committee rejected the PMDC privatisation proposal.

Published in Dawn, October 2nd, 2024