KARACHI: The federal government has finally approved 3.5 million cubic feet (mmcf) gas for the Special Economic Zone (SEZ) Khairpur, enabling the zone to formally be launched, which would not only strengthen provincial economy but also generate employment opportunities.

Chief Minister Syed Murad Ali Shah, besides calling for a share in the Sui Southern Gas Company’s transmission line, had also sought permission for Sindh to have its own gas distribution company.

The Khairpur SEZ, which is one of the three such zones being established in Sindh, is spread over 140 acres of land which is dedicated to the agriculture industry. The two other zones are the Korangi Creek Industrial Park and the Bin Qasim Industrial Park. The main fiscal benefits for setting up industry are one-time exemption on machinery and equipment and also 10-year income tax holiday for both the developer as well as the zone enterprises within the zone.

Board of Investment Chairman (BoI) Miftah Ismail, who called on Sindh Chief Minister Syed Murad Ali Shah here on Monday in CM House, told him that his efforts had produced results and 3.5mmcf gas had been approved for the Khairpur SEZ.

The chief minister said that the Khairpur SEZ was situated on the National Highway. “It is at the best location and its entire infrastructure has been developed, only gas was required to formally launch it,” he said and added that it would strengthen provincial economy and generate employment opportunities.

Murad wants Sindh to have its own gas distribution company

The chief minister demanded for the provincial government its share in the SSGC’s transmission line. “The people of Sindh have the right to get their due share from the transmission line laid in Sindh,” he said.

The chief minister also demanded the SSGC’s ownership for the provincial government. “I want the provincial government be allowed to have its own gas distribution company,” he said. In this way the other provinces producing gas should have their own gas companies, he suggested.

The BoI chairman said that it was possible to allow provinces to establish their gas distribution companies but it would be decided by the federal government.

The chief minister said he would strive for establishing a provincial government gas distribution company.

Before gas was sanctioned for the Khairpur SEZ, the Sindh government had strongly pleaded to the federal government at a recent meeting that unless the Council of Common Interests submitted a policy to implement Article 158 of the Constitution, sanction of gas to any SEZ other than Khairpur was “illegal” and “unjustified”.

Sindh Board of Investment (SBI) Chairperson Naheed Memon during her meeting with the SSGC chairman in Islamabad had handed over a message of Chief Minister Shah for the ministry of petroleum and natural resources. During the meeting, they had also discussed the issues of “provision of electricity and gas connections to the notified SEZs”.

Ms Memon told the federal authorities that the Sindh government considered denial of gas to the province as a miscarriage of justice.

Conveying the message of the CM, the SBI chief said it was appalling that the ministry of petroleum was considering rolling back the 18th Amendment “so that it can control the gas supplies and give priority to Punjab and the federal capital.” She said the allocation of gas to any SEZ outside Sindh would not be accepted.

“The ministry of petroleum and natural resources should not entertain any gas connection request until the gas is provided to the country’s first SEZ, which has been established at Khairpur.”

Officials in the Sindh government said the first three SEZs of the country were situated in Sindh, but the relevant federal authorities had not approved gas supply to either of them.

“The federal government is also violating Article 154, which makes it mandatory upon the federal government to provide gas and electricity to the SEZs. The three SEZs in Sindh had been notified in 2014 [but still] await provision of gas.”

Recalling Article 158 vis-a-vis the priority of requirements of natural gas explicitly the chief minister said the province in which a wellhead of natural gas was situated should have precedence over other parts of Pakistan in meeting its requirements from that wellhead, subject to the commitments and obligations as on the commencing day.

Published in Dawn, October 3rd, 2017