Oil, gas firms contribute Rs 864bn in taxes

Aftab Ahmed

Islamabad: The State-owned Entities (SoEs) in the oil and gas sectors contribute Rs 864 billion in taxes annually.

The Petroleum division informed during a meeting held here on Thursday.

Federal Minister for Energy Mr. Hammad Azhar chaired a briefing session on the petroleum sector at Petroleum Division today. Mr Mian Asad Hayaud Din, Federal Secretary for Petroleum Division, and senior officers briefed the Honourable Minister on the petroleum sector of the country.

The Chair was informed that the annual profit-earning before tax of SOEs under the administrative control of Petroleum Division is PKR 178 billion and these companies contributes with taxes amounting to 864 billion rupees per annum in national exchequer kitty. Total spending on CSR activities by petroleum companies stands around 3.2 billion rupees annually.

The Secretary also briefed the  Minister, in detail, about the positive progress on UFG Reduction, construction of cross-national/ local gas pipelines & Exploration and Production activities. The Minister was also apprised about the reformation/restructuring of companies’ boards and appointments of MDs of SOEs under the Petroleum Division.

The Secretary also highlighted various issues including the issue of rationalization of gas sale prices, recovery of receivables of companies, security measures at E&P sites and development being in progress to address these issues.

The Minister appreciated the team of Petroleum Division for positive progress on key areas of public delivery & administrative services and aimed that a comprehensive plan of action would be pursued for smooth redressal of various issues of the oil and gas sector.