Regulatory Administrative Institutions MPA 517

1. Regulatory Administrative InstitutionsMPA 517 Lecture-25

2. Recap • Upon the establishment of OGRA on 28th March, 2002 the Natural Gas Regulatory Authority (NGRA) was subsumed by the OGRA. • All properties and works done by the NGRA were transferred to and protected under the OGRA Ordinance. • OGRA was, therefore, in a position to start its functions in respect to natural gas immediately upon its establishment. 

3. Directorate General of Gas-FUNCTIONS • Assessment of consumers’ gas prices based on the prescribed prices, determined by OGRA and making recommendations to the Government for their fixation • Budgeting and monitoring of receipts of Gas Development Surcharge • Implementation of the President/PM directives including Gas supply schemes of the Parliamentarians • Coordination with Ministry of Interior and Civil Armed Forces etc on issues relating to safety/security of gas pipeline in the country • Processing as well as implementation of Cabinet/ECC decisions • Parliamentary Business, i.e. Senate/National Assembly Questions, Standing Committees meeting and ensure implementation of their recommendation.

4. Wings • Directorate General of Gas • Directorate General of LNG & LPG • Directorate General of Oil • Directorate General of Petroleum Concession • Directorate General of Refineries • Human Resource and Administration Wing • International Joint Venture Wing • Mineral Wing • Policy Wing

5. Today’s Lecture • Human Resource and Administration Wing • International Joint Venture Wing • Mineral Wing • Policy Wing

6. Human Resource and Administration Wing Administration Wing consists of a Joint Secretary, two Deputy Secretaries and six Section Officers along with the supporting staff. Administration Wing is responsible for the following functions: • All matters pertaining to personnel management and general administration of the Ministry ( Secretariat ). • All matters relating to personnel management and general/financial management affairs of the Policy Wing of the Ministry, Oil, Gas and Mineral sector companies, Geological Survey of Pakistan (GSP) and Hydrocarbon Development Institute of Pakistan ( HDIP ), under Ministry of Petroleum & Natural Resources. • Corporate affairs of oil and gas companies.

7. Functions • All matters relating to technical assistance, tours and training in Pakistan and abroad • Coordination work of the Ministry, its attached departments, organizations with other Federal Ministries/Divisions/Departments etc. • Processing of non-development budget of the Ministry, its attached departments and matters relating to Public Accounts Committee/Departmental Account Committee etc. • All matters relating to website and networking of the Ministry. • Coordination work relating to P&NR Committee on Defence Planning as well as security of key points etc. • Courts/Litigation cases. • Parliament business.

8. JOINT SECRETARY (HR & ADMN) • Supervise the work of Deputy Secretary (Admn) and Deputy Secretary( Personnel). • All matters pertaining to personnel management and general administration of the Ministry (Secretariat). • All matters relating to Personnel management and General / financial affairs of the Policy Wing of the Ministry, Oil and Gas Companies, geological Survey of Pakistan (GSP), Pakistan Mineral Development Corporation and Hydrocarbon Development Institute of Pakistan, under Ministry of Petroleum and Natural Resources. • Corporate affairs of oil, gas and mineral sector companies

9. International Joint Venture Wing • This wing comprises of one  Joint Secretary, two Deputy Secretaries and four Section Officers along with complementary staff. • International Joint Venture Wing is responsible for all matters other than administration relating to Directorate Generals, GSP, OGDCL, SNGPL, SSGCL, HDIP, PARCO and PSO. Oil & gas infrastructure Processing / approval and monitoring of development schemes. • Foreign Aid / Loan and coordination with World Bank, ADB, CIDA, IDB, JICA. Joint Ministerial Commissions, ECO & bilateral relations. Preparation of Development Budget (PSDP), Long Term plans, Economic Survey & Budget Speech. • All policy matters, ECNEC, ECC, CCOI, CCOP, Cabinet and implementation of decisions. Foreign investment, privatization, import of natural gas projects.

10. Mineral Wing As evident from the geological environment and present state of exploration and mineral discoveries made, so far, Pakistan has vast potential for varieties of minerals. These includes: 1) Huge resources of Thar Coal Sindh, 2) Well-known copper and precious metal potential of district Chagai Baluchistan, Waziristan and Gilgit-Baltistan 3) Marble and granite deposits of Khyber Pakhtunkhwa (K.P.) 4) Rare earth elements in carbonatites in K.P. 5) World famous gemstones of K.P, AJ&K and Gilgit-Baltistan, and 6) Huge potential of industrial rocks and minerals (rock salt and coal) in Punjab

11. In spite of having all these resources the country is importing metals and alloys, gold and fertilizer minerals. • As a result of expanding economy the import of mineral based product continue to increase with time, rapidly. • In order to encourage indigenous production of minerals and products for domestic use, government has been encouraging investment in exploration and development in the mining sector. • The utilization of latest exploration techniques may bestow Pakistan with discoveries of world class concealed or sub-surface deposits as yet undetected by previous exploration programmes.

12. It is very likely that future mineral discoveries with modern techniques of exploration, in the given area, may include such precious, base metals and rare elements which are highly prized in the present market. • By using the aeromagnetic and geophysical techniques, future exploration may be able to find extension of known deposits.

13. Metallogenic zones in Pakistan Tectonically the country has been divided into eleven metallogenic zones. These includes • ChaghiRaskoh Magmatic Arc which is famous for world class copper-gold deposits, • ChamanOrnachNal Transform fault famous for antimoney occurrences in Qila Abdullah, Lasbela- Khuzdar- Muslim Bagh- Zhob-Waziristan • Ophiolites zone which is famous for copper-gold, manganese etc. • Sediment Hosted Lead-Zinc deposits, Kirthar Thrust & Fold Belt having coal deposits and decorative stones

14. Indo-Pakistan Shield rocks of Sargodha and Nagar Parkar, Sulaman Fold • Thrust Belt famous for gypsum and industrial rock • Salt range and Kala-Chitta Hills having rock salt, gypsum coal etc. • Gondwanic domain rocks of Haripur, Sherwan famous for gemstones and industrial rocks • Kohistan Magmatic Arc having matelic minerals, ophiolites and melange zone having high quality gemstone etc. • Karakoram Block having various economic minerals

15. Current Development • For development of these mineral resources through private national / international investment an investment friendly National Mineral Policy (NMP) has been formulated with the consensus of all the provinces and stake holders. • The NMP offers various incentives for investment in the mineral sector and all the provinces have formulated investment friendly mineral concession rules to enhance its shares in the GDP and make it competitive in the international market.

16. Due to existence of these investment friendly polices various international companies have started • exploration and mining in Pakistan which includes production of copper and gold from Saindak copper project Balouchistan and production of lead-zinc from Duddar deposit Balouchistan by the Chinese company M/S MCC. • Detail exploration has been completed by the multinational Tethyan Copper Company (TCC) in district ChagiBalochistan. • Moreover, various international companies have started work on development of various blocks in Thar coal fields Sindh which will lead to mining and power generation.

17. Policy Wing The Policy Wing is comprised of • DIRECTORATE GENERAL OF PETROLEUM CONCESSION • DIRECTORATE GENERAL OF OIL • DIRECTORATE GENERAL OF GAS  • DIRECTORATE GENERAL OF ADMN/SPECIAL PROJECTS • Each Directorate is headed by a Director General. The Policy Wing is responsible for developing policies for oil and gas sector forecasting future requirement and assessing the impact of existing policies, rules and regulations.

18. Gems & Jewellery Sector • Currently, Pakistan imports more than one hundred and twenty tones of gold per annum, which makes it the eighth largest consumer of gold in the world. • In the year 2002, Pakistan exported gems & jewellery worth US$32 million (which went down to US$28.2 million in 2003). • Although, the volume of exports of gems & jewellery from Pakistan is of no great significance in the total global trade of US$84.4 billion  and much lower than India, which is our biggest regional competitor, but the growth potential of exports in the sector is huge.

19. Pakistan has been gifted with abundant resources of several precious and semi-precious gemstones, at present mostly found in Northern Areas and NWFP, but with a huge future potential in Balochistan. • Most important of the currently found stones are emeralds of Mingora (Swat), pink and golden topaz of Katlang (Mardan) and aquamarine of Chitral and Neelam Valley. • At present, there is no formal survey available to identify the geological resources of gemstones in the country. • Furthermore, due to lack of realization of its importance as an industry, those who are engaged in the mining, cutting/polishing and trading of gemstones in Pakistan have not been able to exploit the full potential of this sector.

20. The first gemstone mine in Pakistan was discovered in 1951, in the Haramosh Range in Gilgit. But it took no less than 27 years for the establishment of Gemstones Corporation of Pakistan (GEMCP), under the administrative control of Ministry of Petroleum & Natural Resources, in 1978. • GEMCP was responsible for exploring, mining, auctioning and exports of gemstones. Within 15 years of its establishment, GEMCP was disbanded in 1993-94 and private sector was encouraged to invest in the sector. • The impact of privatization proved to be positive, as exports of gemstones have risen since then, albeit slightly. • In 2003, the total value of gemstones export was worth US$4 million. • Factors including lack of appropriate skills, vested interest, regulatory bottlenecks, technological limitation and so forth, have been responsible for hindering the efforts of new investors to make any significant progress in this regard.

21. Summary • Human Resource and Administration Wing • International Joint Venture Wing • Mineral Wing • Policy Wing

22. Next Lecture • Ministry of Ports & Shipping