Only 22% CSR Funds of Petroleum Companies Used for Social Welfare

The National Assembly Standing Committee on Energy on Thursday was informed that just 22 percent of the corporate social responsibility (CSR) funds held by petroleum companies had been used for social welfare purposes, while substantial amounts remain unused across all provinces. In Khyber Pakhtunkhwa, Rs. 1.44 billion sits unused, while Punjab holds Rs. 1.31 billion with only Rs. 427.4 million spent so far. The Petroleum Secretary briefed the committee that 19 petroleum companies have been regularly depositing CSR funds for community development, but a lack of district-level committees has obstructed their usage. He said full responsibility for these funds rests with district administrations yet without formal committees progress has stalled. A committee member said funds are often transferred to trust accounts where interest rates reduce their value over time. He also highlighted the internal conflicts among local representatives as a big problem. Committee members proposed empowering companies to spend CSR funds directly in local communities to expedite growth. They expressed concern over the absence of local government systems in Punjab preventing fund deployment and impeding social welfare projects. The committee chairman established a sub-committee to investigate these obstacles and develop actionable recommendations for improved CSR fund usage.