The Supreme Court on Friday sought a report on appointments made in the Pakistan State Oil (PSO) and transparency in LNG contracts.
An apex court bench led by Chief Justice of Pakistan (CJP) Mian Saqib Nisar was hearing a petition regarding the increase in the price of gas and petroleum products after the imposition of taxes.
Petroleum Minister Ghulam Sarwar Khan, National Accountability Bureau (NAB) special prosecutor Akbar Tarar and counsel for PSO Mehmood Mirza appeared before the court.
As the hearing went underway, the counsel for the PSO submitted a report on prices of petroleum products before the bench and said the prices were high owing to management and sales affairs.
To this, the chief justice remarked, “There was an unjust increase in the prices of petroleum products. We will refer this matter to NAB.”
The top judge then asked, “Where is the chief executive officer who draws Rs 3.7 million? The counsel for the PSO said that he had retired.
The NAB’s special prosecutor then informed the court, “During the previous government’s term, a PSO managing director was appointed to benefit one person.”
To this, Justice Nisar remarked, “Call Shahid Khaqan Abbasi and ask him why this happened.”
“NAB should go after such cases and leave tehsildars. The people should know what has happened with them,” he said.
Justice Nisar then asked the NAB special prosecutor about Ahad Cheema, to which Tarar said, “We have prepared cases.”
The chief justice also expressed anger at PSO for hiring a private lawyer and asked Mirza how much fee he was being paid to which the lawyer responded that he would be paid Rs 1.5 million.
“State intuitions are sinking in debt but they hire private counsels. The PSO should have asked the attorney general to represent it,” Justice Nisar remarked.
The court then asked the attorney general to brief it in a week’s time and adjourned the hearing till October 10.
Chartered accountant Mukhtar Kazmi briefed the court on prices of petroleum products and said that Rs 61 is the import price on which an additional Rs1.32 per litre is charged.
“The additional charge includes freight and insurance charges. The PSO is abiding by the PEPRA rules by charging Rs 1.32 per litre,” he added.
Kazmi said, “Rs 10.17 is the domestic cost which includes freight charges of Rs 3 to ensure petrol prices are uniform across the country.”
“Rs 3.47 is the dealer commission which is determined by the government while Rs 27 are paid in taxes which include a fixed Customs duty and GST per litre is determined by the Federal Board of Revenue (FBR).”
When the chief justice asked how the government determines the tax rates, the attorney general said, “Oil and Gas Regulatory Authority (OGRA) gives recommendations which are then approved by the federal cabinet.”
Justice Nisar then questioned, “If PSO does not determine the prices then why was the former MD paid a salary of Rs3.7 million?”
Justice Ijazul Ahsan then added, “Most general managers are drawing millions in salaries.” Stating that austerity measures should be taken, Justice Nisar said, “Call the former MD to explain why non-developmental expenditure was increased.”
Published in Daily Times, September 29th 2018.