PAC Reveals Multi-Billion Loss to Public in Petroleum Levy, Orders Recovery

Islamabad: The Public Accounts Committee (PAC) has uncovered that the public has suffered losses amounting to billions of rupees under the petroleum levy, with major companies failing to pay their dues.

During a PAC meeting chaired by Naveed Qamar, audit objections exceeding Rs20 billion related to the petroleum sector were reviewed. Audit officials revealed that the enforcement mechanism for collecting the petroleum levy is weak, leading to long-standing non-payment by companies.

The committee noted that Synergyco and HESCOIL had outstanding dues of Rs1.463 billion in petroleum levies and fines. Audit officials reported that only Rs19 million had been recovered so far. Secretary Petroleum clarified that HESCOIL had paid the amount into the wrong account, which has since been closed, making corrections impossible.

PAC members expressed strong displeasure over the situation. “How can such an important sector’s taxation system operate this way? Billions collected from the public have not been transferred to the government,” remarked PAC member Shazia Marri. The committee recommended improvements in legislation to strengthen levy collection.

Regarding Synergyco, Secretary Petroleum stated that the company would pay Rs4.7 billion in 48 installments over four years and an additional Rs2.1 billion in late payment surcharges. PAC requested a response from the Petroleum Secretary within two weeks concerning the surcharge payments.

The committee also reviewed the use of Rs1 billion generated from the sale of technical data by the Petroleum Division, which had been kept in an unauthorized commercial account. The Secretary admitted the funds were wrongly placed and assured that they would be transferred to the authorized account immediately. PAC ordered that all public funds be deposited into the National Treasury within a day and held the Petroleum Division accountable within two weeks.

Chairman Naveed Qamar emphasized that despite warnings from the Finance Division, funds were kept in commercial accounts from 2017 to 2026, indicating possible hidden interests.