Muhammad Suleman Khan
Energy crisis is the burning issue in Pakistan. Economical crises in this decade were due to energy crisis. If we examine the potential of our energy resources, Pakistan is one of the ten richest countries of oil reservoirs. Survey of Pakistan indicates so many oil and gas fields can be developed in the country. We have very vast coal reservoirs in Thar, Balochistan and Punjab. We have also very huge potential of hydel electricity about 9.1 million megawatts. We are wasting 35 MAF water annually which has the economical cost of $2 b/ MAF. A question arises, why we fail to solve the energy crisis.
We know that our economy is agro-based. In the decade of 1960's, our economy jumps due to the construction of mega dams in Pakistan. In the early of 60's, we faced food crisis. Our economy could be compare just like Indian poor economy. But after the construction of mega dams, our economy jumps. Green valleys (especially Punjab) produced huge quantity of food. Huge quantity of raw material was provided to our agro-based industries at very cheapest cost. Hence, after the heavy short fall of electricity and failure of oil and gas supply, our living standard is much better with compare to our neighbour countries India, Afghanistan and Bangladesh (East Pakistan). But, it is very alarming situation to our country, why we are facing the energy crises? Why our institutions are failed to supply oil, gas and electricity to face our demands. We have a vast arrangement in ministry of Petroleum and Natural Resources. Thirteen (13) huge companies including OGDCL, SNGPL & SSGPL are in the list of this ministry but we are failed in oil and gas supplies. Water and Power Development Authority (Wapda) was also a very huge company to provide us water and cheep electricity. The Answer is one, the corrupt heads of these institutions are responsible for the failure of energy.
Article 169 of the Constitution of the Islamic Republic of Pakistan read with Section 8 and Section 15 and other relevant provisions of the Auditor-General's (Functions, Power and Terms and Conditions of Service) Ordinance, 2001 requires the Auditor-General of Pakistan to conduct audit of the expenditure from the Federal Consolidated Fund, Public Account and that of Government Commercial Undertakings and of any Authority or Body established by the Federation. In this report, 49 organisations out of 93 total Federal Government PSEs (Public Sector Enterprises) were selected on the basis of risk assessment. We examine and discuss one of them, a big organisation Sui Northern Gas Pipelines limited (SNGPL).
As per the ruling of Supreme Court of Pakistan, SNGPL is a state enterprise in which the majority shareholding is held by the Government. SNGPL is therefore, not free to deal with such assets whimsically or in utter disregard of the fiduciary duty owed to the nation. Nor, we may add, does SNGPL have unfettered discretion to deal with national assets in a manner that does not protect and advance the best interest of SNGPL as fiduciary and repository of the interest of the people of Pakistan who are, through the Government, beneficial owners, not only of the mineral resources of the country but also of majority interest in SNGPL.
Sui Northern Gas Pipelines Limited (SNGPL) was incorporated as a private limited company in 1963 and converted into a public limited company in January 1964 under the companies Act 1913, (now Companies Ordinance 1984) and is listed on all the three Stock Exchanges of the country.
Auditor General report indicates "A number of internal control weaknesses were seen during the audit of Public Sector Enterprises. The recommendation of the Auditor General report is "Strengthening of internal control is required in all organisations for their effective functioning with a view of safeguard against fraud, inefficiency and waste. By doing so, the organisation can better achieve their desired objectives in a befitting and economical manner.
Pakistan is very rich in oil & gas field sectors. But, the consumers are facing a huge deficit in gas supply. OGRA is a regulatory authority to control oil and gas demand and supply. It monitors and control SNGPL, SSGPL and other oil companies throughout the country. SNGPL is responsible for gas supply in the North region of Pakistan i.e., (Punjab, Khyber Pk, Islamabad and Northern & Tribal Areas). SNGPL is bound to supply uninterrupted gas to consumers especially domestic, & the same sector has first priority according to the OGRA policy. But unfortunately, consumers have to face no gas supply against huge amount of bills especially in winter.
OGRA, the Regulatory Authority observed that SNGPL is in violation of licence condition No. 34, wherein it is obligated to ensure continuous and reliable supply of natural gas to its existing consumers.
The office of Auditor General of Pakistan vide their observation made in the audit of OGDCL for a period from February 2014 to June 2014 pointed out that the gas theft of billion of rupees was at the top list due to lack of failure and control over the culprits.
Board of Directors of SNGPL, did not consider the basic implied condition for the appointment of M.D., i.e., integrity, honesty & fairness, which is allegedly lacking of said M.D which makes his integrity, honesty & fairness at least a doubtful.
The example of corruption is not in SNGPL only. It is the history of failure of our character in national building departments/ organization & corporations. Rulers are directly responsible for this failure. They promote flatterers instead of loyal persons. Pakistan is very rich in natural resources but the jugglery of these flatter persons is the main reason of our left behind.
A question arises, why our country is a failure country if we have a lot of resources. It is only reason when we do not take opportunities with our resources, we could not face our problems. The vision of our Quaid-i-Azam, was to build Kalabagh Dam (Mianwali Hydro Project) to solve the energy problems by very cheep electricity to our industry and Nara Canal to provide water to the barren desert of Thar. But our leaders are avoiding Quaid's mission.
In Wapda report, it is stated that the annual electricity generated at Kalabagh Dam would be equivalent to 20 million barrels of oil otherwise needed to produce costly thermal power. This annual import of fuel would require augmentation of transportation infrastructure. It is the additional burden of billion of dollars per annum to the economy.
According to the Nepra Report 2012, we generate 100 billion units. In which 22 billion units were generated by hydel power at the cost of only 16 paisa per unit. The 15 billion units annually generation of Kalabagh Dam and it also feed back Terbela Dam causes 6 billion units more production. These 20/21 billion hydel units can change our economical situation. Our electricity tariff falls to reliable value which protects our industrial cost as well as our domestic consumers. The load shedding comes to zero.
IRSA is responsible authority of four of the provinces and federal government. Its Chairman Engr. Raqib Khan (who belongs to Khyber Pk) has written an official letter to the Secretary, Ministry of Water & Power for the water crisis in the country. He wrote "IRSA strongly recommended the construction of new water storages of at least 22 MAF capacity on all the feasible sites on war footing basis as agriculture is the back bone of the country's economy (it is point to note that the capacity of Kalabagh Dam is only 6.1Maf). The new storages will help to improve the diminishing per capita water availability, increase in GDP, control of floods etc., besides availability of cheap environment friendly hydel power to overcome the power crisis being faced by the country which is giving a serious setback to the economy.
Chairman Pakistan Engineering Council, Engr. Dr. Syed Abdul Qadir Shah, who is the brother of Syed Khurshid Shah, senior opposition leader in National Assembly, told at the event of World Water Day that "We have only the storage of 50 days whereas Egypt has 700 days storage in Aswan Dam, China is a big country of huge population has the storage of 500 days whether India has the storage of 120-220 days. We are facing horrible shortage of water. We have to build dams at any cost otherwise after 10-15 years, Pakistan will be the land of deserts.
The construction of Kalabagh Dam and other hydel projects on war footing basis is need o the hour. This is only the way of our survival. This will provide us very cheep electricity to face our industrial and domestic necessities. The cheep hydel electricity may causes to be decreased the oil and gas demands.
In matters in which the government bodies exercise their contractual powers, the principles of judicial review cannot be denied. In such matters, judicial review is intended to prevent arbitrariness or favouritism and it must be exercised in the larger public interest.
Re-employment on contract after superannuation should be restricted in all Autonomous/ Semi-autonomous Bodies/ Companies which are under administrative control of the Government, and it should be require approval of the Prime Minister.
It is very important for our national economy growth, there should be joint venture of foreign investing companies with the Pakistani companies especially in hydel and energy projects.
(The writer is Chairman Sind Tas Water Council Pakistan)