QUETTA, June 28: Balochistan has demanded of the federal government to set up a broad-based body in Islamabad to monitor the production, distribution, tariff and income of the oil and gas supply companies.
This body should have representation from all the oil and gas producing provinces of the country who get a share in direct transfer of surcharges, excise and royalty on oil and gas.
In a post-budget press conference on Friday at the Balochistan Secretariat by the Provincial Finance Minister Jalil Khan Dotani, the journalists asked a number of questions as to why the share of their province in oil and gas income was showing a declining trend for past several years.
The additional chief secretary of Planning and Development Ahmad Baksh Lehri said that the Balochistan government too is worried on its falling share in the income of gas surcharge and has urged Islamabad to set up a broad-based body. All the oil and gas companies should be asked to give their accounts and details of production, distribution, tariff and income to this body periodically.
The finance secretary, Ahmad Mahmood Zahid said that since other two provinces, Sindh and Punjab, are also now providing gas and oil to the national distribution systems of oil and gas, therefore, Balochistan’s share has come down.
To another question, the Finance Minister said that one of the working groups of the National Finance Commission (NFC), in its last session, had proposed three different ratios for declaring area as the basis of resource distribution among the provinces.
He said that these ratios are 11 per cent, 9 per cent and 8 per cent. The Working group wants the NFC to declare factors other than population as the criteria for distribution of resources among the provinces.
Additional chief secretary Mr. Lehri said that except for one province, which he did not name, three provinces want factors other than population to be declared as the basis for distribution of resources. These are area of the province, level of development and income generation.
He hoped that the NFC would soon complete its task and finalize the award for distribution of resources. Balochistan also expects a marked increase in its share of resources from Islamabad in the coming year.
The Balochistan minister was asked that since the Provincial Finance Commission has decided to provide districts with funds on the basis of a formula which provides 50 per cent on the basis of population and 50 per cent on the basis of area, if any demand has been made with the NFC to consider same ratio in distribution of resources among the provinces at the national level.
“We want Islamabad to rationalize the transfer of resources,” he remarked while responding to a number of questions.
During question and answer session it was revealed that like Sindh, Balochistan is also equally bitter with Wapda on the issue of presumptive electricity billing which has resulted in at source deduction of more than Rs1.2 billion in the current outgoing fiscal year causing a budgetary gap.
“We are in dispute with Wapda but has been forced to accept at the source deduction,” he replied and hoped that eventually Balochistan would be able to get a substantial refund in near future.
Therefore, in anticipation of this refund and that a more appropriate billing would be done he said the government has provided only RS500 million subsidy on electricity and wheat in the coming year’s budget. He said wheat is staple food and strategic stock has to be maintained for which some subsidy is necessary.
Responding to another question he hoped that Saindak project would commence its production in next two months which would augment provincial income. He said the Chinese sponsors would give 700,000 dollars a year royalty on the raw material and technical lease fee for the machinery and equipment. Besides, the commencement of Saindak would trigger a chain of economic activities in the region that would generate more income for the Balochistan government and opportunities for the people.
Mr. Lehri also termed Coastal Highway project and Gwadar port as of vital economic and strategic importance for Mekran division in particular and for Balochistan as a whole. “As Sindh is demanding a share in income of natural sources like port, we will also claim our share in these infrastructure facilities,” he remarked.
He said that Balochistan government was giving roads development a priority importance because it will bring raw material producing areas nearer to the market and may become an attractive place for investors.
Answering a question he said the next budget proposes to create 7,000 new jobs. Of these 2,000 are in levies and 2,000 in education while remaining are in other departments.
He agreed with a questioner that allocation for education has been brought down lower than last year in the provincial budget. “But you should wait for budgets of 22 district governments. Each of these governments will give their respective allocation to the education which will take up allocation for education higher than last year,” he pointed out.
Replying to another question, he said Balochistan government pays 16 to 17 per cent interest on the loans taken from the federal government. The total loan liability now amounts to Rs39 billion.
Mr. Lehri said that Balochistan government has given more than 11 per cent of the budget to development of Quetta city. “What is now Quetta’s budget was a few years ago budget of entire Balochistan,” he said.
Replying to other questions, he said a number of steps have been taken in the budget to make effective implementation of law and order. Investigation in police and Levies is being separated and strengthened. Similarly prosecution branch is also being separated.