ISLAMABAD-The Senate Standing Committee on Petroleum was Monday informed that smuggled Iranian High Speed Diesel is 19.5 per cent of total demand whereas just in Punjab 1364 petrol pumps are illegally selling smuggled petrol. 
The Senate Standing Committee on Petroleum, which met with Senator Mohsin Aziz in the chair, directed that in order to protect precious lives, all ‘C’ category mines in Balochistan, which are the riskiest, must be upgraded to category ‘B’ or be shut down
While being briefed on the current situation of pending issue between federal and Sindh governments for laying 17km gas pipeline of imported gas; the Committee was informed that Sui Southern Gas Company Limited (SSGCL) laid the subject pipeline on December 22, 2020. The Committee took up the issue of the supply of gas to Sui residents and directed the Ministry to write to PPL regarding this and submit a compliance report. 
Discussing the progress of exploration of Kohlu block, the Committee was informed that last extension was granted w.e.f 01 January, 2020 for a period of two years; in order to enable the company to discharge its minimum work obligations which have been pending since a long time due to the volatile law and order situation in the area. It was informed that the seismic survey of the block will begin during the ongoing month. OGDCL has reported that as an operator of the block it has been continuously pursuing the concerned authorities for provision of security clearance cover for immediate commencement of exploration activities in the area. The Committee directed that all out efforts must be made to ensure that work commences at the earliest and that a monthly progress report must be submitted to the Committee. 
Senator Mir Kabeer said that gas is being extracted from Qalat and Sui but is not being provided to both the areas. Senator Shamim Afridi said that the entire gas of Khyber Pakhtunkhwa is being provided to Punjab.
While being briefed on actions taken by the Petroleum Division to curb the smuggling of POL products and the action taken by the Petroleum Division in the light of the directives of the Prime Minister; the Committee was informed that following the directives issued by the Prime Minister against fuel smuggling and illegal fuel distribution in the country; National Taskforce has been constituted with the Chief Minister and Home Secretary as conveners. The Committee was further informed that smuggled Iranian diesel fulfills 19.5 per cent of total demand.  The committee was informed that in Punjab smuggled petrol is being sold on 1364 pumps. It was informed that operation against the oil smuggling has been started from  January 13, 2021 and in the first phase action is being taken against the pumps in Punjab, Sindh and KP.
Mir Kabeer said that in Balochistan 2.2 million people are related to the business of Iranian oil. Instead of banning the illegal smuggling the business needs to be regularized. However, his view point was disagreed by Nauman Wazir. Senator Mohsin Aziz said that smuggling cannot be legalized. 
The Committee was also informed that a strategy has been developed by FBR, where in first stage; illegal retail outlets that are prime beneficiaries of the smuggled fuel in the three provinces of Punjab, Sindh and Khyber Pakhtunkhwa would be sealed. As per devised strategy, in the second phase the situation in Balochistan would be addressed.  The Committee was of the view that the government must provide alternate source of livelihood to those who are affected by this measure in Balochistan. 
Discussing implementation status of recommendations of the meeting of the Senate Standing Committee on Petroleum held on 5th and 6th December, 2019 regarding measures taken thereof to improve the safety standards of mines; it was asserted that standards must be defined to formulate a system. The Committee directed Mine and Mineral Development Department Balochistan that in order to protect lives all ‘C’ category mines, which are the riskiest, must be upgraded to category ‘B’ or be shut down. The Committee reiterated the need for increasing registration of labour. The Committee directed the Mine and Mineral Development Department Balochistan to notify Rs 500,000, the already agreed upon amount, as part of compensation package to be paid by employer immediately.
On the issue of merger/absorption of employees of Lakhra Coal Development Company (LCDC), Ltd, the Committee was informed that LCDC was established as a joint venture in 1990 among Pakistan Mineral Development Corporation (PMDC), Government of Sindh and Water and Power Development Authority (WAPDA). The renewal of coal mining lease granted to the company was declined by the Government of Sindh in 2019 and thus the company was deprived of the source of revenue generation. The future of LCDC and its employees was deliberated upon by the Board of Directors of the Company. Since there were no visible business development avenues; employees were served notices and a financial plan for payment of their dues is being worked out. No response has been received from the Government of SIndh despite repeated reminders. The Committee took cognizance of the dire financial burden faced by the employees of LCDC and deliberated on two proposals to facilitate the employees; namely payment of the outstanding dues to the employees by PMDC, WAPDA and Government of Sindh with respect to their shareholding or the proposal of lease agreement drawn in favour of PMDC. The Committee directed LCCDC to share audited figures of outstanding liabilities with the Government of Sindh within three days after which the Committee would reconvene within next 15 days to take a final decision on the matter.