Home »Fuel and Energy » Pakistan » ”Lack of transparency” in LNG deal: Imran”s decision widely hailed

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  • Mar 27th, 2017
  • Comments Off on ”Lack of transparency” in LNG deal: Imran”s decision widely hailed
Imran Khan, Chairman Pakistan Tehreek-e-Insaf''s (PTI) recent announcement that the party would challenge the 15-year LNG deal signed with Qatargas last year has been hailed by analysts, an anecdotal survey revealed.

Business Recorder contacted Salim Mandviwalla, chairman of the Senate Standing Committee on Finance who confirmed that his party (PPP) would either file its own petition in the matter or else support PTI''s petition. The reason: no details have been shared with the relevant parliamentary committee in spite of repeated requests or with the parliament which leaves no option but to challenge the deal in court.

Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi, however, claimed that the government has provided all the necessary details to parliamentarians.

Parliamentarians across the political divide, including PML-N loyalists and members of the senate/national assembly petroleum committee, told Business Recorder that Shahid Khaqan Abbasi has never shared details of the agreement with them and the deal was very quietly uploaded on the PSO website on October 8, 2016 - eight months after it was signed in Qatar. The deal includes a formula which, as per senior officials, can help determine 95 percent of the price to Pakistani consumers at any time; the remaining 5 percent is dependent on variables like port charges, transport, retainge etc.

The Petroleum Minister has repeatedly claimed that some parts of the deal contain information that is too sensitive to be made public. His critics challenge this and maintain that the LNG deal is a commercial deal and does not contain information that can be classified as sensitive or against national interest.

Dr Arif Alvi, PTI, while talking to Business Recorder said his party will challenge Pakistan-Qatar Liquefied Natural Gas (LNG) deal on the basis of new information.

Nawab Ali Wassan, PPP, accused members of the executive of taking kickbacks/commission from the LNG deal and cited this as the reason for the Sharif administration''s reluctance to share the deal with the relevant parliamentary committee, parliament or the public "which, as per law, is necessary" he added.

Sajid Ahmed of Muttahida Quami Movement (MQM), member of National Assembly Standing Committee on Petroleum and Natural Resources, told Business Recorder that Federal Minister Shahid Khaqan Abbassi had committed to members of Parliament that he would brief them on the LNG deal but has yet to fulfil his commitment. However, he said that the members of the committee have visited the LNG terminals.

Mir Muhammad Yousaf Badini, Member Senate Standing Committee on Petroleum also denied that the Minister has provided any details of the deal to the committee or parliament. He said little information was shared with the committee and that too "in a vague manner".

Both Senator Kalsoom Perveen of Pakistan Muslim League-Nawaz ((PML-N) and Rana Muhammad Ishaq Khan, a member of the ruling party in the National Assembly Standing Committee on Petroleum and Natural Resources, said that Shahid Khaqan Abbasi did not brief the Senators/committee on the LNG contract. However Ishaq Khan said that the Minister gave a general briefing about the LNG deal to the Committee but did not share specifics particularly on pricing.

The LNG deal has come under greater scrutiny recently subsequent to the submission of a letter from a Qatari prince in the Panama case hearings providing the money trail that enabled the First Family to purchase expensive Mayfair flats.

Copyright Business Recorder, 2017


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