Provinces To Receive Half Of Oil And Gas Profits At Wellheads, Senate Panel Says 

oil and gas profits

The Senate Functional Committee on Devolution has directed federal authorities to transfer a 50% constitutional share of oil and gas profits to the provinces, and chaired by Senator Zamir Hussain Ghumro, the committee met to address the long-delayed implementation of Article 172(3), which provides for joint and equal ownership of natural resources.

Oil and Gas Profits Set for Fairer Provincial Sharing

The panel proposed that provinces either receive 50% of the corporate profits generated by oil and gas companies or assume direct control over half of the wellheads. Either route would guarantee a rightful financial share and strengthen the federal spirit of the Constitution.

Constitutional Framework Under Review

Sixteen years after the 18th Constitutional Amendment, a functional framework for equal management and revenue distribution is yet to be fully realised by the Petroleum Division. The committee expressed firm concern over the delay and pressed for practical progress.

Senator Ghumro also highlighted that devolved matters such as oil, gas and regulatory oversight should not be routed through the federal cabinet. Inter-provincial coordination falls constitutionally under the Council of Common Interests, and restoring that role would reinforce institutional balance.

Timeline for Action on Wellhead Revenue

The committee set a 15-day window for authorities to devise a clear, actionable mechanism for joint control. Should the deadline pass without a workable plan, the Auditor General could be ordered to withhold the funds and transfer them directly to the provinces.

Show-cause notices were also issued to senior officials who did not attend the proceedings. The tough talk points to a serious attempt to convert a long-standing constitutional promise into concrete benefits for provincial development.

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