Senate Panel Calls for 50% Oil and Gas Revenue Share for Producing Provinces
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Senate Panel Calls for 50% Oil and Gas Revenue Share for Producing Provinces

The Senate Functional Committee on Devolution has urged the federal government to fully implement constitutional provisions by ensuring that oil- and gas-producing provinces receive their rightful 50% share of revenue generated from natural resources extracted within their territories.

The directive came during a committee meeting chaired by Senator Zamir Hussain Ghumro, where members reviewed the implementation of the 18th Constitutional Amendment and its impact on the distribution of oil and gas revenues among the provinces.

The committee emphasized that the constitutional framework clearly outlines the rights of resource-producing provinces and stressed that these provisions must be implemented in both letter and spirit. Lawmakers noted that fair revenue sharing is essential for strengthening provincial autonomy and supporting regional development.

Pakistan’s energy-rich provinces play a vital role in the country’s oil and natural gas production. Committee members observed that allocating the constitutionally mandated share of resource revenues would enable provincial governments to invest more effectively in infrastructure, healthcare, education, and other public welfare initiatives.

The discussion also focused on the broader objectives of the 18th Constitutional Amendment, which significantly expanded provincial powers following its passage in 2010. The amendment was designed to decentralize governance, enhance provincial authority, and ensure a more equitable distribution of national resources.

Committee members highlighted that timely and transparent revenue transfers are critical for maintaining trust between the federation and the provinces. They urged relevant federal institutions to resolve any administrative or legal hurdles that may be delaying the implementation of constitutional obligations.

During the meeting, officials reviewed the current status of oil and gas revenue distribution and examined whether existing mechanisms align with constitutional requirements. The committee called for greater coordination between federal and provincial authorities to ensure that resource-producing regions receive their due share without unnecessary delays.

Energy sector experts have often argued that equitable revenue sharing encourages local development while fostering stronger cooperation between the federal government and provinces. Proper implementation of constitutional provisions can also support investment in energy-producing regions by improving public services and infrastructure.

The committee reiterated that respecting the constitutional rights of provinces remains essential for strengthening Pakistan’s federal structure. It emphasized that transparent financial arrangements and effective implementation of the 18th Amendment would contribute to balanced economic growth and sustainable development across the country.

The Senate Functional Committee on Devolution is expected to continue monitoring the matter and may seek further updates from relevant ministries to ensure compliance with constitutional provisions governing the distribution of oil and gas revenues.